By Chantalé Fletcher
WITH the 15% price increase for cement expected to be effective from December 20, Government is seeking to put new measures in place to alleviate the burden from purchasers.
This was stated by Minister of Trade and Industry Paula Gopee-Scoon on Wednesday and will include increasing importation.
Speaking in the Senate, Gopee-Scoon said upon information from Trinidad Cement Limited (TCL) that they intended to increase the price of locally manufactured cement, immediately the Cabinet took a decision that the Ministry of Trade and Industry should approach the CARICOM agency which is responsible for trade and economic development, in order to seek a suspension of the hydraulic cement from 50% that would end in December 2021, to 20% beginning January 2022 and end in December 2022.
There is an existing quota on import licenses regime for cement which included all types of cement in Trinidad and Tobago, which at the moment was 75,000 tonnes of cement, she said.
Gopee-Scoon said, “We will expand that to 150,000 tonnes which will be effective from January, 2022. In addition, the Government sought to bring relief to the citizenry of T&T, bearing in mind that competition will keep the market in check and therefore, prices will remain as low as possible with the entry of extra-regional cement into the country.”
“We recognise the importance of keeping the cement price low for the construction industry, understanding the connection between the manufacturing of cement and the construction industry, ” she added.
Gopee-Scoon was asked by Opposition Senator Wade Mark how the 15% increase in TCL would be reflected in the new prices of cement given the initiatives.
The minister responded that the 50% Common External Tariff (CET) will end at the end of December and the 20% CET will be put in place however, it was impossible for the Government to indicate what the price would be.
She said, “Those licensed stores under the quota regime will now move to bring cement here and that cement will enter the market at 20%. That competition will keep the market in check and keep the price of cement low with the relative competition being in place.”
The Trade Minister also said that the government will encourage all players and any new entrance to get involved in the manufacturing of local cement as TCL holds a monopoly over its manufacturing.
Five companies were registered with the import licensing regime but so far for 2021, only one of the five imported has brought in any cement for the 2021 period, Gopee-Scoon said.
Referring to the other four importers she said, “They could join in understanding the market to be open and they were also more likely to join in with the importing of cement as well.”
