G/SG/Q2/MDG/2  
18 April 2019 
(19-2613) Page: 1/4 
Committee on Safeguards  Original:  French  
 
  
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON  
SAFEGUARDS ON INITIATION OF AN INVESTIGATION  
AND THE REASONS FOR IT  
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON  
SAFEGUARDS  BEFORE TAKING A PROVISIONAL SAFEGUARD  
MEASUR E REFERRED TO IN ARTICLE 6  
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2,  
OF THE AGREEMENT ON SAFEGUARDS  
REPLIES TO QUESTIONS1 POSED BY MAURITIUS REGARDING  
THE NOTIFICATIONS OF MADAGASCAR2 
(Pasta)  
The following commu nication, dated 17 April 2019, is being circulated at the request of the 
delegation of Madagascar . 
 
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Procedural questions  
Question 1  
 
Madagascar notified the WTO on 7 March  2019 that the product scope had expanded 
during the investigation period to include noodles, in addition to pasta products . Could 
Madagascar clarify when it first expanded the scope of the investigation?  
 
Reply 
 
After the investigation  was initiated , the National Trade Remedies Authority (ANMCC) realized that 
the range of directly competitive products was wider than had been anticipat ed at the beginning of 
the investigation . The ANMCC therefore decided to broaden the scope of the definition of the product 
in question to cover all imports that may be causing injury to the domestic industry . Consequently, 
Madagascar notified all the interested parties of this expanded scope  and submitted the notifications 
contained in G/SG/N/6/MDG/1/Suppl.1 and G/SG/N /11/MDG/1/Suppl.1 , with the aim of providing 
the interested parties with a genuine opportunity to present their views , as required under 
Article  12.1(a) . The Government of the Republic of Mauritius and all the interested parties were 
informed of this decis ion to expand the scope of the investigation, and responded through 
two written submissions and the above question.  
 
                                                
1 G/SG/Q2/MDG/1, dated 29  March  2019.  
2 G/SG/N/7/MDG/1 –G/SG/N/11/MDG/1, dated 9  January  2019 and 
G/SG/N/6/MDG/1/Suppl.1 -G/SG/N/7/MDG/1/Suppl.1 -G/SG/N/11/MDG/1/Suppl.1, dated 7  March  2019.  G/SG/Q2/MDG/2  
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  Question 2  
 
Does Madagascar intend to re -initiate the investigation in consideration of the procedures 
stipulated in Article 12 of the Agreement on Safeguards.  
 
Reply 
 
The investigation is not being re -initiated , but rather the product scope covered by the investigation 
is being expanded . In any case, it should be noted that the notification submitted by Madagascar on 
20 February  2019 (G/SG/N/6/MDG/1/Suppl.1 ; G /SG/N/7/MDG/1/Suppl.1 ; 
G/SG/N/11/MDG/1/Suppl.1) is a supplement to the notification on the initiation of the invest igation.  
 
Questions on "critical" circumstances and injury  
Question 3  
 
According to the data provided, there is an upw ard trend in market share of domestic 
production in 2017 and for the first six months of 2018 . Can Madagascar please explain 
how it considers the situation to be "critical" within the meaning of Article 6 of the WTO 
Safeguards Agreement?  
 
Question 4  
 
What is the rationale for Madagascar to assess injury by examining separately the figures 
for Habibo Mills and other domestic pasta producers?  
 
Questions on existence of objective evidence  
Question 5  
 
Could Madagascar please submit updated figures through December  2018 (2013 -2018) 
for the following factors : rate and amount of the increase of imports, share of domestic 
market, changes in levels of sales, production, productivity, capacity utili zation, profits 
and losses, and employment?  
 
Question 6  
 
In responding to Question 5, can Madagascar confirm that it has been able to cross -check 
the figures which were provided by the operators of its local industry with data from 
Malagasy Customs and/or National Statistics Office and other relevant institutions ? If so, 
please provide official data with respect to the various parameters being analysed.  
 
Reply 
 
The replies to questions 3, 4, 5 and 6 will be included in our final report , which will be notified as 
soon as possible.  
 
Questions on product scope  
Question  7 
 
The imposition of Madagascar's provisional safeguard appears to be based on preliminary 
findings of injury for pasta products, including noodles . Can Madagascar please explain 
the basis for combining pasta and noodles as like or competitive products in  a single 
investigation?  
 
Reply 
 
The ANMCC has already provided  the domestic industry's arguments  in the report on the preliminary 
determination  to explain  the similarity and condition of competition between noodles and other pasta  
products . Further arguments will be provided in the report on the final determination.  
 G/SG/Q2/MDG/2  
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  Question 8  
 
Could Madagascar please submit disaggregated data for pasta and noodles for the last 
5 years (2013 -2018)?  
 
Reply 
 
The data used by the ANMCC comprises import statistics provi ded by the Madagascar Customs 
Service , and given that noodles, spaghetti and macaroni are imported under the same HS code s, 
the data used is the mo st accurate data available.  
 
Question 9  
 
Taking into account the fact that there is a single company producing instant noodles in 
Madagascar, namely Salone:  
 
• What is the capacity of noodle production in Madagascar and more specifically 
the capacity of machines used by the local manufacturer?  
 
Reply 
 
As mentioned by Mauritius, there is only one producer of noodles in Madagascar . Therefore, the 
information on the production capacity of an enterprise is confidential and the ANMCC cannot disclose 
such information  without the specific permission of the party that provided it.  
 
• What is the total capacity of the domestic industry to meet demand for noodles 
and/or pasta in the Malagasy market?  
Reply 
 
The total production capacity of the three enterprises in the domestic pasta industry in Madagascar 
represents over 39,000 tonnes . 
 
• Has Madagascar determined the  anticipated impact of a safeguard on prices in 
(a) the noodle market, and (b) the pasta markets in Madagascar?  
 
Reply  
 
The anticipated impact of the measure on the price of noodles on the Madagascan market will be 
described in the "public interest" sectio n, which will be notified to all interested parties as soon as 
possible.  
 
• Please explain where in the investigative report or in the submissions of 
interested parties it is possible to determine the extent and nature of the impact 
on consumer welfare sho uld the safeguard be imposed.  
 
Reply 
 
As mentioned above, this question will be addressed in the "public interest" section.  
 
Remedy  
Question 10  
 
On what basis did Madagascar determine that a 30 % duty would be "reasonable" under 
Article 5(1) of the Agreement on Safeguards ? Has the future impact on exports been 
analysed?  
 
Reply 
 
The rate of 30% was calculated on the basis of importation and production costs, with the aim of  
ensuring the same level of competition for domestic producers and exporters.  
 G/SG/Q2/MDG/2  
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  Question 11  
 
Could Madagascar share the basis on which it determined the 30 % tariff increase is would 
be necessary to avoid serious injury to the domestic industry producing (a) noodles, and 
(b) pasta p roducts?  
 
Reply 
 
During the preliminary stages of the investigation, the ANMCC considered that a 30% increase was 
the minimum rate necessary to prevent or remedy injury to the domestic industry.  
 
Question 12  
 
Please provide all economic analysis and econometric studies that were the basis for the 
calculation of the amount of tariff increases necessary to avoid serious injury.  
 
Reply 
 
All the relevant information was included in the investigation file and,  as this information is not 
confidential  under  Article 3.2 of the Agreement on Safeguards, the interest ed parties can find it in 
the investigation file.  
 
Question 13  
 
Please provide an analysis of the length of time that would be necessary for the 
safeguards to remain in place in order to avoid serious  injury to the domestic industry 
producing (a) noodles and (b) pasta products.  
 
The duration of the definitive measures will not differ for each type of pasta . The measures will be 
applied for the period  necessary to prevent or remedy serious injury and  facilitate adjustment in 
accordance with Article 7.1 of the Agreement on Safeguards.  
 
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