Taken from Philippine Daily Inquirer, April 15, 2008
Ban on wastepaper
Threat to security of raw material supply in RP
By Ronnel W. Domingo
The Department of Trade & Industry is considering of a total ban on the exportation of wastepaper, which local paper manufacturers say is posing a threat to the security of their raw material supply. Trade Secretary Peter B. Favila said in an interview the matter was being studied in light of the call made by industry players for a total ban. “We have to look at all the factors affecting this issue,” Favila said. “Any step we take should also take into account whatever related international agreements and guidelines there may be.”
In a letter to Favila dated March 28, Bataan 2020 Inc. president and chief executive Alfred Y. Huang said current estimates showed that more than 1,000 tons of waste paper was being regularly shipped out of the Philippines to China and Hong Kong. And the volume is increasing, Huang said. Huang added that buying inquiries from Vietnam, Indonesia and Australia “have started pouring in.” “Both Taiwan and Malaysia have already legislated a ban on waste paper export as a means of ensuring continuous supply of raw material for their domestic requirements,” he said.
According to the Philippine Pulp and Paper Manufacturers Association (Pulpapel), the export of waste paper – including used corrugated cartons – started last year with shipments to Thailand. An industry report showed that the 35 domestic pulp and paper mills consumed 1.19 million metric tons of waste paper last year and were estimated to use 1.24 million MT by the end of this year. In 2006, the mills also used up 931,665 MT of pulp and 115,100 MT of paper. The 35 mills, representing a total processing capacity of 2.21 million MT as of 2006, produced a total of 1.66 million MT or 75 percent of capacity in the same year.
The report also showed that the industry was a net importer of raw materials and paper products, and has been importing not les than 550,000 MT of waste paper a year over the past several years. In an interview last November, Pulpapel president Miguel del Rosario said exporting waste paper was robbing the domestic industry of a major asset – the supply of locally available recyclable materials – which could compromise the industry’s competitiveness.
Del Rosario said the industry was already suffering a shortage as domestic paper mills import a third of their raw material supply needs. |
