Chemphil reaches agreement with soap manufacturers

Chemphil, the company which FairTrade supported on its safeguard petition and the country’s lone manufacturer of a local soap detergent ingredient, have reached an agreement with the soap manufacturers to continue its business even without the reimposition of safeguard provisions.

In a report by Paul C.H. How of BusinessWorld:

In a memorandum of agreement signed yesterday, the Soap and Detergent Association of the Philippines (SDAP), through President James M. Lafferty, who is also president of Procter & Gamble Philippines, Inc., committed to provide financial assistance to Chemphil Albright & Wilson Corp., represented by its Chief Operating Officer Alexandra Garcia-Versoza.

Chemphil, for its part, will work on getting back on its feet after having contemplated closing down at the end of May due to the removal of tariffs on sodium tripolyphosphate (STPP), the production of which has been more expensive by $150 per metric ton than the same component imported from China without safeguards.

“The industry will begin to resupply [from Chemphil] at competitive prices and help them become competitive. They [Chemphil] need to invest in certain fuel systems in their factory, and also develop alternative uses for their equipment. They can diversify their portfolio. We will help them either get financing or outright [provide] grants of money,” Mr. Lafferty told reporters.

The investment of the money, he added, will allow the STPP supplier to bring prices down and become globally competitive.

Regarding Chemphil’s petition to DTI to reverse its ruling on STPP safeguards:

Ms. Alexandra Garcia-Versoza said that, with the signing Chemphil will be withdrawing its petition with the Trade department asking for the restoration of tariff charges of P14,150 per metric ton on STPP, which were lifted last February.

The Trade department had dismissed last March Chemphil’s petition to remove the tariffs, and ordered the refund of cash bonds that had been imposed on importations from July 2006 till then. The state had previously imposed the P14.15-per-kilogram cash bond on the STPP importations for 200 days beginning last July.

The company then filed for reconsideration, saying the removal of the safeguards was allegedly in favor of China-imported STPP.

Chemphil, manufacturers settle dispute on soap ingredient
Various FairTrade articles and resources on the issue of Chemphil and safeguards

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  1. Simon Noel Garcia

    COO Alexandria Garcia-Versoza is correct, the DTI’s (Peter Favila) move will definitely kill the industry, I don’t know what’s
    on the mind of the government, they always reason out that
    it is good for the consumer(the other commodities)maybe they get payolas at the Chinese well sorry for being rude but that is
    my opinion.

  2. By all means kill the industry. If they can’t compete in a global market then China is the least of their concerns. Perhaps if they were less reactionary and more diligent they would be better positioned. The government can save a lot of money by not engaging in government welfare. The economy will benefit from lower costs of Chinese imports.

    There are stiff tariffs importing into the Philippines, yet the Filipino cannot compete? Maybe they can pay bribes to make sure the competitor pays their tarrifs. LOL 🙂 Yep, you need to pay people to do anything in this country. To be their job or not to do it.




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