GOVERNMENT responded to plans by Trinidad Cement Ltd (TCL) to increase its cement prices by increasing the amount of cement which could be imported into Trinidad and Tobago.
The Trade and Industry Ministry will meet with TCL at the earliest opportunity and after this meeting, "recommend further policy adjustments inclusive of a review of the common external tariff (CET) on cement, if necessary, in the national interest."
This information was contained in a statement issued by the ministry on Wednesday.
The statement said, "Earlier today (Wednesday), the Cabinet of Trinidad and Tobago agreed to the suspension of the quota and registration system for cement."
This decision was taken as a result of the ministry's monitoring of market conditions in the cement industry and TCL's announcement on Monday that it will increase the prices of its premium plus and eco cement by 6.63 and 7.69 per cent from February 19.
This price adjustment, the ministry continued, is the fourth undertaken by TCL in the last 26 months.
The other three cement price increases were 15.6 per cent (December 2021), seven per cent (August 2022) and five per cent (March 2023).
The ministry said Government's decision was based on two considerations – availability of affordable cement and the viability of the local cement industry.
The former deals with cement forming a critical linkage between the manufacturing and construction sectors.
With respect to this, the ministry said cement is vital for the country's sustainable development.
"There are several large-scale projects which will be adversely affected but moreso, the availability of affordable cement to consumers is of paramount importance."
The latter identifies cement as a pillar of the non-energy sector and its ability to allow this sector to contribute to the economy.
The ministry said, "The local manufacturer is a major exporters of building cement, net foreign exchange earner and a major employer."
The existing quota and registration system for cement, the ministry continued, was instituted on January 1, 2021 with an initial ceiling of 75,000 tonnes of cement allowed for import.
In 2022, the maximum quota ceiling for cement allowed for importation was increased to 150,000 tonnes. This ceiling remained in effect in 2023.
The ministry said the suspension of the quota and registration system means "there will be no quota on the volume of cement allowed for import."
Cement, the ministry continued, remains on the import negative list and will continue to be subject to a licensing regime.
The ministry said this regime is non-automatic and applications for a licence to import cement must be submitted to it, with certain requirements.
These include the companies seeking to import cement being registered under the Companies Act, have adequate and appropriate warehousing facilities for the safe and reliable storage of imported cement, have an established distribution network and must ensure that all imported cement meets the relevant Caricom regional product stan
