In a release published yesterday, Carib Cement says it is at a loss following the recent conclusion of the Antidumping and Subsidies Commission (ADSC) to allow Vulcan Materials to export cement at less than its sales price in the US to Jamaica.
Below is the full release by Carib Cement:
Carib Cement is at a loss following the recent conclusion of the Antidumping and Subsidies Commission (ADSC) that although the US cement producer Vulcan Materials is exporting cement to Jamaica at less than its sales price in the US, and with a dumping margin of 59.8% and in significant volumes, the ADSC has found that there is no injury or threat of injury to the Jamaican cement industry.
The final ruling contradicts the ADSC’s preliminary ruling, which found a dumping margin of 15% and the threat of material injury to Carib Cement. Carib Cement contends that the high dumping margin is clearly indicative of predatory pricing practices by Vulcan, aimed at taking away sales, market share and revenue from the Jamaican cement industry, resulting in the loss of foreign exchange and potentially local jobs while passing on super profits to Vulcan’s Jamaican importers.
The company added that in an environment of severe economic contraction, it was difficult to follow the reasoning that the high margin of dumping was not a significant threat to the Jamaican cement industry and its workers.
Carib Cement also highlighted that the company was unclear about a government policy that indicated an intention to eliminate discretionary waivers on imports and increase revenues yet continued to provide waivers on dumped products that will conservatively cost the taxpayers $100m.
It must be noted that the CET waivers were granted by the Ministry in charge of the ADSC only to Tank Weld, Vulcan’s cement importer, and the cement was used for certain construction projects that Vulcan and Tank Weld refused to disclose during the ADSC proceedings.
Further, this is the same Ministry that within a matter of weeks also initiated a Fair Trading Commission investigation against Carib Cement alleging misrepresentation in the marketing of Carib Plus cement. The Company is anxiously awaiting the statement of reasons from the ADSC and is exploring the avenues of redress available.