G/SG/N/10/MDG/4/Suppl.3  
G/SG/N/11/MDG/4/Suppl.4  
21 July 2023 
(23-5021) Page: 1/5 
Committee on Safeguards  Original:  French  
 
  
NOTIFICATION UNDER ARTICLE 7.2 AND 12.1(C) OF THE AGREEMENT ON  
SAFEGUARDS (EXTENSION OF THE EXISTING MEASURE)  
 
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2,  
OF THE AGREEMENT ON SAFEGUARDS  
MADAGASCAR  
Pasta  
The following communication, dated and received on 2 0 July 2 023, is being circulated at the request 
of the delegation of Madagascar.  
 
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Pursuant to Articles 7.2 and 12.1(c) of the Agreement on Safeguards, the Committee on Safeguards 
is hereby notified of  the outcome of the review investigation in respect of the extension of the 
safeguard measure on imports of pasta into Madagascar.  
Pursuant to Article  12.3 of the Agreement on Safeguards, Madagascar is prepared to consult with 
those Members having a substantial interest as exporters of the product concerned.  
1  NOTIFICATION UNDER ARTIC LES 7 .2 AND 12 .1(C) OF THE AGREEMENT ON 
SAFEGUARDS UPON TAKING A DECISION TO EXTEND A SAFEGUARD MEASURE  
1.1  Evidence that the safeguard measure continues to be necessary to rem edy or prevent 
serious injury and that the industry concerned is adjusting  
In order to determine whether the safeguard measure continues to be necessary to prevent or 
remedy serious injury, and whether the domestic industry has made adjustments, the Nation al 
Authority for Trade Remedies (ANMCC) conducted a comprehensive analysis of relevant indicators 
having a bearing on the economic situation of the domestic pasta industry, as well as import trends 
over the period of application of the measure.  
a. Import trends  
 2019  2020  2021  2022  
Imports (in tonnes)  30,039  21,900  26,756  14,268  
Imports (index base 100 = 2019)  100 73 89 47 
Imports/production  
(Index base 100 = 2019)  100 58 48 28 
In absolute terms, pasta imports fell 27  index points for the first year in which the safeguard measure 
was applied . Pasta imports increased from 21,900  tonnes to 26,756  tonnes between 2020 and 2021, 
an increase of 16  index points . Imports fell sharply again in 2022 . Relative to domestic production, 
pasta imports fell a co nsiderable 72  index points during the period under review . The largest fall 
occurred in the first year in which the safeguard measure was applied, when imports fell 42  index 
points.  G/SG/N/10/MDG/4/Suppl.3 • G/SG/N/11/MDG/4/Suppl.4  
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  b. Situation of the domestic industry  
To evaluate the economic situation of t he domestic industry, import trends and other relevant data 
were analysed . The ANMCC reviewed the data for the period under review:  
 2019  2020  2021  2022  
Consumption (index base  2019 = 100) 100 94 132 99 
Market share of imports  
(index base 100 = 2019)  100 78 68 48 
Domestic production (index base 100 = 2019)  100 126 184 167 
Production capacity (index base 100 = 2019)  100 126 126 194 
Production capacity utilization rate  54% 54% 79% 47% 
Production capacity utilization rate  
(index base 100 = 2019)  100 100 146 86 
Sales (index base 100 = 2019)  100 123 193 172 
Turnover (index)  100 145 221 249 
Inventory volume (index base 100 = 2019)  100 196 105 383 
Employment (index base 100 = 2019)  100 141 164 165 
Productivity (index base 100 = 2019)  100 90 112 101 
Financial results (index base 100 = 2019)  100 134 111 155 
Although domestic consumption was not stable over the analysis period, it did not fall significantly.  
The market share taken by imports decreased 52  index points during the period under review.  
The volume of pasta produced by the domestic industry increased by 67  index points over the whole 
period of application of the measure . However, the 17 % fall in production in 2022 relative to 2021's 
production volume is a new source of concer n for the domestic industry.  
Production capacity in the domestic industry increased 94  index points during the period under 
review . As the volume of production increased up until 2021, the domestic industry's production 
capacity utilization rate followed this upward trend for the same period . However, in 2022, this rate 
fell sharply due to the decline in domestic production, which has not kept pace with the increase in 
production capacity.  
Sales volumes are following the same trend as that of dome stic production . A steady rise 
was recorded for the first three years period of application of the measure before a significant fall of 
21 index points in 2022.  
Turnover in the domestic industry rose by 149  index points during the period under review.  
The volume of inventories in the sector rose by 283 index points during the period under review, 
reflecting difficulties in selling products, particularly in 2022, when sales fell.  
The level of employment increased 41 index points in 2020 compared to 2019, and  23 index points 
between 2020 and 2021 . During the period under review, from 2019 to 2022, the number of 
employees in the domestic production sector increased 65  index points.  
Productivity in the domestic industry remained largely stable, despite a fluctua tion in 2020 and 2021 . 
The increase in the workforce does not correlate with the increase in the volume of pasta produced . 
It was for this reason why productivity fell 10 and 11  index points in 2020 and 2022, respectively, 
compared to previous years.  
Profitability of the domestic industry improved considerably . There was an increase of 55  index 
points between 2019 and 2022 . However, compared to 2020, a fall of 23  index points was recorded 
in 2021.  
The indicators discussed above demonstrate the effectiveness  of the measure applied since 2019 
which led to an improvement in the domestic industry's performance . However, the injury it has 
suffered has not been fully repaired in terms of certain indicators such as inventories and 
profitability.  G/SG/N/10/MDG/4/Suppl.3 • G/SG/N/11/MDG/4/Suppl.4  
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  1.2  Description of the product subject to the safeguard measure  
Pasta in the form of spaghetti, macaroni, noodles or in any other form, classified under tariff 
headings : 1902 11 00, 1902 19 00, 1902 20 00  and 1902 30 00  of Madagascar's customs tariff 
codes.  
1.3  Description of the proposed measure  
The proposed measure is in the form of tariff quotas with an annual fixed quota of 15,000 tonnes 
and an additional duty of 27 % of the c.i.f. value for out -of-quota imports.  
1.4  Proposed date of introduction of the measure  
The proposed measure will enter into force on 1  August  2023.  
1.5  Expected duration of the measure  
The expected duration of the proposed measure is four (4) years.  
1.6  Expected timetable for progressive liberalization of the measure  
Period  Quota  Additional  duty 
1 August 2 023 to 3 1 July 2 024 
15,000  tonnes  27% 
1 August 2 024 to 3 1 July 2 025 26% 
1 August 2 025 to 3 1 July 2 026 25% 
1 August 2 026 to 3 1 July 2 027 24% 
 
1.7  If the notification relates only to a finding of serious injury or threat thereof, and does 
not relate to a decision to apply or extend a safeguard measure  
Not applicable.  
1.8  If the notification relates to a decision to apply or extend a safeguard measure, 
Members are encouraged to provide the following information:  
a. The major exporting Members of imports of the product involved  
The main countries exporting pasta to Madagascar are Egypt, Indonesia and Tunisia.  
b. If there are any exporting Members to which the measure does not apply for any 
reason other than the application of Article  9.1, the names  of such exporting 
Members and reasons for non -application of the measure  
Not applicable.  
1.9  Information relating to the extension of a safeguard measure  
a. Evidence that the safeguard measure continues to be necessary to prevent or 
remedy serious injury or thre at thereof  
Following the application of the safeguard measure, the economic indicators of the domestic industry 
improved significantly as of 2019 . However, the situation of the domestic industry remains fragile . 
If the measure is therefore not extended, the increase in imports will surge, again threatening 
domestic industries . This is why the safeguard measure continues to be necessary.  
b. Evidence that the industry concerned is adjusting  
The domestic industry has implemented its adjustment plan aimed at increasing production capacity, 
improving production processes, product quality and cost control, and strengthening the workforce, 
staff technical capacity and trade strategy.  G/SG/N/10/MDG/4/Suppl.3 • G/SG/N/11/MDG/4/Suppl.4  
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  The improvement seen in most of the economic indicators  analysed as part of the review 
investigation is clear evidence of the adjustments undertaken by the domestic industry . However, 
the early stage of this situation means that the measure must be maintained.  
c. Reference to the WTO document that notified the in itial application of the measure  
WTO documents containing the original measure are : G/SG/N/8/MDG/4 - G/SG/N/10/MDG/4 - 
G/SG/N/11/MDG/4/Suppl.1  and G/L/1362 - G/SG/247 . 
d. Duration of the measure from initial application until the date at which it will be 
extended  
Madagascar applied a safeguard measure on imports of pasta for a period of four years, from its 
entry into force on 1  August  2019 to 31  July 2023. Madagascar plans to extend this safeguard 
measure for a further four years.  
e. Precise description of the m easure in place prior to the date of extension  
The latest version of the measure in force can be found in notification:  G/1/1423 - 
G/SG/N/13/MDG/3.  
f. Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision(s) made by the competent authority.  
The official documents regarding the investigation and the final decision can be found at: 
www.anmcc.mg . 
2  NOTIFICATION UNDER ARTI CLE 9.1, FOOTN OTE 2 , OF THE AGREEMENT ON 
SAFEGUARDS  
2.1  Description of the product subject to the safeguard measure  
Pasta in the form of spaghetti, macaroni, noodles or in any other form, classified under tariff 
headings : 1902 11 00, 1902 19 00, 1902 20 00  and 1902 30 00  of Madagascar's customs tariff 
codes.  
2.2  Description of the proposed measure  
The proposed measure is in the form of tariff quotas with an annual fixed quota of 15,000 tonnes 
and an additional duty of 27 % of the c.i.f. value for out -of-quota imports.  
2.3  Developing countries to which the measure is not applied under Article  9.1 of the 
Agreement on Safeguards  
Afghanistan ; Albania ; Angola ; Antigua and Barbuda ; Argentina ; Armenia ; Bahrain ; Bangladesh ; 
Barbados ; Belize; Benin; Bolivia, Plurinational State of ; Botswana ; Brazil; Brunei Darussalam ; 
Burkina Faso ; Burundi ; Cabo Verde ; Cambodia ; Cameroon ; Central African Republic ; Chad; Chile; 
Colombia ; Congo; Costa Rica ; Côte d'Ivoire ; Cuba; Democratic Republic of the Congo ; Djibouti ; 
Dominic a; Dominican Republic ; Ecuador ; El Salvador ; Eswatini ; Fiji; Gabon; Gambia ; Georgia ; 
Ghana; Grenada ; Guatemala ; Guinea ; Guinea -Bissau ; Guyana ; Haiti; Honduras ; India; Israel; 
Jamaica ; Jordan ; Kazakhstan ; Kenya; Kuwait ; Kyrgyz Republic ; Lao People's Democratic Republic ; 
Lesotho ; Liberia ; Malawi; Malaysia ; Maldives ; Mali; Marshall Islands ; Mauritania ; Mexico; Moldova ; 
Mongolia ; Montenegro ; Morocco ; Mozambique ; Myanmar ; Namibia ; Nepal; Nicaragua ; Niger; 
Nigeria ; North Macedonia ; Oman; Pakistan ; Panama ; Papua New Guinea ; Paraguay ; Peru; 
Philippines ; Qatar; Rwanda ; Saint Kitts and Nevis ; Saint Lucia ; Saint Vincent and the Grenadines ; 
Samoa ; Saudi Arabia ; Senegal ; Seychelles ; Sierra Leone ; Solomon Islands ; South Africa ; Sri Lanka ; 
Suriname ; Tajikistan ; Tanzania ; Thailand ; Togo; Tonga; Trinidad and Tobago ; Uganda ; Ukraine ; 
United Arab Emirates ; Uruguay ; Vanuatu ; Venezuela, Bolivarian Republic of ; Viet Nam ; Yemen ; 
Zambia ; Zimbabwe.  G/SG/N/10/MDG/4/Suppl.3 • G/SG/N/11/MDG/4/Suppl.4  
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  3  OFFER OF CONSULTATIONS UNDER ARTICLE  12.3 
Pursuant to Article  12.3 of the Agreement on Safeguards, Madagascar is ready to hold consultations 
on the proposed safeguard measure with those Members having a substantial interest as exporters 
of the product concerned.  
4  FURTHER INFORMATION  
Further information may be obtained f rom: 
Director -General of the National Authority for Trade Remedies (ANMCC)  
Enceinte Ex -Conquête Antanimena, Antananarivo 101 - Madagascar  
Tel.: (+261)  34 05 441 41 
Email: dg.anmcc@gmail.com /dg@anmcc.mg  
Website: www.anmcc.mg  
 
 
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