Philippines hits imported cars and vans with tariffs to help domestic industry

MANILA, Jan 4 (Reuters) - The Philippines is imposing
temporary duties on imported passenger cars and light commercial
vehicles to protect its tiny carmaking industry hit hard by the
pandemic, its trade minister said on Monday.
Before the COVID-19 pandemic, the Philippines was a growth
market for the autos industry owing to rising incomes. But
Japanese carmakers such as Isuzu Motors 7202.T and Honda Motor
7267.T have stopped local production of some vehicles, opting
to import from around the region. "While we generally do not restrict products coming into the
market, we also need to ensure the level playing field for our
local industry," Trade Secretary Ramon Lopez said in a
statement.
Without such a move, the industry would suffer damage that
would be "difficult to repair", the ministry said, adding the
measure would prevent firms from leaving.
The Philippines' motor vehicle manufacturing sector employed
nearly 90,000 workers as of 2018, government data showed.
Provisional safeguard duties in the form of a cash bond are
being set at 70,000 pesos ($1,459) each for imported passenger
cars and 110,000 Philippine pesos ($2,292) for light commercial
vehicles (LCV), increasing retail prices by about a tenth.
Currently, most vehicles sold in the country are imported
duty-free under trade deals.
The new tariffs, which stemmed from a petition by a group of
automotive workers, will be in effect for 200 days, the trade
ministry said.
The Philippines produced nearly 55,000 vehicles in January
to October 2020, accounting for just 2.5% of the region's output
of 2.22 million units, data from the ASEAN Automotive Federation
showed.
Imports of passenger cars have increased by an average of
35% from 2014 to 2018, trade ministry data showed. Imports of
LCVs that include pick-up and small trucks surged three times to
51,969 units in the same period.
($1 = 47.9850 Philippine pesos)