By Lavern Clarke, Acting News EditorONE CEMENT importer has given notice to the Anti-Dumping and Subsidies Commission that it will no longer be participating in the investigations that will decide whether Caribbean Cement Company is eligible for safeguard protection.
ARC Systems in a letter to the Commission said its decision was linked to simultaneous efforts by Minister of Finance Dr. Omar Davies to have duties on cement imports increased despite the safeguard investigations.
"ARC is deeply disappointed by the lack of checks and balances, consultation and notification processes inherent in Jamaica which has permitted this simultaneous process to begin and to continue," the company said. It is one of two known cement importers.
Speaking with Wednesday Business, ARC chairman Norman Horne said his company had budgeted more than $5 million to fight the safeguard case, but having assessed the likely outcome of the two processes, has decided those funds would be better spent lobbying government directly and pitching its case to the public.
"We made an economic decision...the cost involved is very high," he told Wednesday Business.
Two weeks ago, Dr. Davies asked Parliament to consider moving the bound tariff rate on cement imports from 15 to 50 per cent.
It pre-empts the investigations being carried out by the Anti-Dumping Commission to determine whether Carib Cement in fact needs protection from foreign competition and imports.
MEETING SET FOR NEXT WEEK
Attempts to get response from the Finance Ministry on why Dr. Davies decided not to await the outcome of the safeguard investigation were unsuccessful. However, Wednesday Business was advised that the different interest groups will be invited to air their views publicly at a meeting set for next week Thursday at the Jamaica Conference Centre.
Carib Cement filed its case with the Commission on September 1, and the Commission initiated investigations 45 days later on October 16 having decided that cement producer had given sufficient cause to warrant the probe.
ARC's decision not to participate in the safeguard case is unlikely to interrupt the investigation. However, if it sees fit, the Anti-Dumping Commission can instruct the company, under the Safeguard Act of 2001, to furnish the state agency with information pertaining to its operation as importer. And if ARC refuses to co-operate, the Commission can compel compliance through the courts under sections 10 and 11 of the act.
The Commission will publish its preliminary decision on December 15, and wrap up the case in April. Its recommendation on whether to safeguard Carib Cement's market and the protective measures to be taken if it does, will go to Hon. Phillip Paulwell, Minister of Commerce, Science and Technology, who will make the final decision. "Government has the final say," said Horne.
FINAL DECISION
ARC says that since the final decision in the two matters will rest with the same executive body, it has reviewed its options and considers that its resources are better placed challenging the more immediate case before the Finance Minister.
"In both processes the decision is squarely placed in the political/legislative realm with the former appearing to have the greatest likelihood of success."
Dr. Davies, in the face of mounting opposition to his proposed increase in the tariffs announced over a week ago, said that he would delay taking the proposal through the House to facilitate consultations with the cement sector and the Opposition.
Meantime, Carib Cement and the other importer, Mainland International, have been putting their positions to the public via press advertisements.
