The Philippines has notified the World Trade Organization (WTO) that it has launched a safeguard investigation on motor vehicles.
The formal notification was made on Feb. 18, 2020 to the WTO’s Committee on Safeguards by the Permanent Mission to the trade body.
The investigation was initiated on the basis of the petition submitted by members of the Philippine Metalworkers’ Association that increased imports of motor vehicles are the substantial cause of serious injury to the domestic industry in terms of declining market share, production sales, capacity utilization, incurred losses, employment, price depression and price undercutting.
The preliminary investigation stated February 6.
The Department of Trade and Industry’s Bureau of Import Services is seeking comments and position paper on the investigation.
Covered are motor vehicles classified under Asean Harmonized Tariff Nomenclature (AHTN) Code 87.03 and its subheading: motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading including station wagons and racing cars.
The petitioners have cited growing vehicle imports amid as a proportion to those locally-assembled, putting their jobs at risk.
Trade officials said vehicle imports in 2018 stood at more than 207,000 units from just 153,000 units in 2014.
