Cement war brewing on Antigua turf

Prior to TCL’s return to Antigua and Barbuda, a bag of cement retailed between EC$23 (US$8.56) and EC$25 (US$9.31). However, the price has now dropped to a low of EC$20 (US$7.45) a bag.

ST JOHN’S, Antigua, November 9, 2009 – Antigua and Barbuda is bracing for a cement war between two suppliers that could see consumers paying even lower prices for the commodity.

Argos of Colombia, which is set to launch a marketing campaign here later this month, and the Trinidad Cement Limited (TCL) will lock horns with in a battle to gain advantage in the market place, following the expiration of the suspension which Antigua and Barbuda currently has on applying the Common External Tariff (CET) on cement coming from outside the region.

The suspension will come to an end on November 27, 2009. Antigua and Barbuda recently requested a further derogation and at its October 8, 2009 meeting in Barbados, the Council for Trade and Economic Development (COTED) approved the suspension on 60,000 tonnes of cement for Antigua and Barbuda, for the October 9, 2009 to October 8, 2010 period, once the suppliers indicated within three working days that they were unable to supply.

However, Trinidad and Tobago has indicated to the Caribbean Community (CARICOM) Secretariat that it can supply the cement Antigua and Barbuda wants, which means that when the existing suspension expires later this month, all imports of extra-regional cement will attract the 15 per cent CET.

“By virtue of our obligations under the Revised Treaty, Antigua and Barbuda is duty bond to re-impose the CET, which we will,” said Trade Coordinator within the Ministry of Finance, the Economy and Public Administration, Ambassador Dr Clarence Henry in a statement issued yesterday. 

While expressing some disappointment with the forthcoming lifting of the CET suspensions on cement, the Trade Coordinator noted that TCL has re-entered the market via new agents Antigua Masonry Products with extremely good prices, while its competitor Argos, through CARICEMENT, has vowed to fight to maintain its market share.  

Ambassador Henry said the Argos representative visited his office a week ago and expressed a determination to fight TCL through, among other things, paying the CET and the introduction of a marketing campaign.

He said a team from Argos, which recently bought out cement company, Holcim, and took ownership of a cement terminal in the island, will be visiting Antigua and Barbuda by month end to launch the campaign.  

Prior to TCL’s return to Antigua and Barbuda, a bag of cement retailed between EC$23 (US$8.56) and EC$25 (US$9.31). However, the price has now dropped to a low of EC$20 (US$7.45) a bag.

“In these times of fiscal difficulties, consumers are well advised to shop around and take advantage of deals. However, we certainly desire to see an arrangement where prices are lowered and maintained at such levels without the creation of monopolies and or manipulation of prices to drive a player from the market resulting in the surge of the product’s price,” Ambassador Henry said.

“Additionally, in the context of international trade liberalization, we believe that the best model for greater production efficiency leading to economic development is unfettered competition where producers operate in an open trading environment, rather than one being given indefinite Community protection.”