G/SG/N/8/MDG/5  
20 July 2020 
(20-4987) Page: 1/4 
Committee on Safeguards  Original:  French  
 
  
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS OF A FINDING OF SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
MADAGASCAR  
Edible vegetable oil s and margarine s 
The foll owing communication, dated  17 July 2 020, is being circulated at the request of the 
delegation of Madagascar . 
 
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In accordance with A rticle 12 .1(b) of the Agreement on Safeguards , Madagascar hereby notifie s 
the Committee on Safeguards of a fi nding of serious injury or threat thereof caused by increased 
imports . 
 
The investigation was initiated  on 14 August 2 019. 
 
The period covered by the investigation is 1 January 2 015 to 31 December 2 018. 
 
1  PROVIDE EVIDENCE, CITING RELEVANT DATA AND THE APPLICABLE PERIOD OF 
INVESTIGATION, OF SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED 
IMPORTS  
The finding of serious injury to the domestic  edible vegetable oils and margarines  industry  was 
based  on all relevant factors of an objective and quantifiab le nature  having a bearing on  the 
situation of that industry . On the basis of t he data available to the Authority , an analysis was 
conducted of the serious injury suffered by the domestic industry . 
 
i. Market share taken by imports  
 2015  2016  2017  2018  
Market share of the domestic industry  (index ) 100 70 53 56 
Market share of imports  (index ) 100 134 153 149 
 
Since 2015, the domestic industry 's market share has been progressively captured by imported 
products . In 2016, the decline amounted to 30 index points  whereas imports increased by 
34 index points . Over the whole investigation  period , the domestic industry recorded a decrease of 
44 index points  in terms of market share , by contrast with imports,  which showed a sharp increase 
of 49 index points . 
 
ii. Domestic p roduction  
 2015  2016  2017  2018  
Volume of production ( index ) 100 111 103 97 
 
The increase of 11 index points  between  2015 and 2016 was only temporary for the domestic 
industry . Over the last three years of the investigation period , the domestic industry produc ing like  
products or products  directly competitive with the product under investigation recorded a decline 
in production of some  14 index points . G/SG/N/8/MDG/5  
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iii. Change in level of sales and turnover  
 2015  2016  2017  2018  
Turnover  (index ) 100 109 102 99 
Sales v olume ( index ) 100 108 101 94 
 
In 2016, turnover rose by 9 index points  in relation to 2015 but the trend reversed from 2017. 
Between  2016 and 2018, the drop in turnover amounted to 10 index points . The lowest level 
recorded was in 2018, but the most significant drop was between 2016 and 2017, amounting to 
7 index points . 
 
With regard to sales volume, after recording an 8-point improvement  in 2016 by comparison  with 
2015, the last three years have seen a con tinuous  decline , from 108 to 94 index points  between  
2016 and 2018, i.e. a 14-point drop. The lowest level of sales was in 2018.  
 
iv. Production capacity utilization  
 2015  2016  2017  2018  
Capacity u tilization ( index ) 100 111 103 75 
 
A significant decline of 36 index points  in domestic  production capacity utilization was recorded 
over the last three years under review . 
 
v. Emplo yment  
 2015  2016  2017  2018  
Number of employ ees (index ) 100 100 98 98 
 
The level of e mployment dropped by 2 index points  over the whole investigation period . 
 
vi. Productivit y 
 2015  2016  2017  2018  
Annual change  (index ) 100 111 105 99 
 
Productivity  of the domestic  industry fell by 12 index points  over the last three years  of the 
investigation period . 
 
vii. Inventory  
 2015  2016  2017  2018  
Final inventory  (index ) 100 114 118 82 
 
Inventory levels of the domestic industry showed  a rising trend during the investigation period 
except in 2018. This reflects the difficulties faced by the company in disposing of its product . 
 
viii. Profitability  
 2015  2016  2017  2018  
Results  (index ) -100 -103 -111 -108 
 
Over the whole review  period , the domestic industry struggled to achieve  profitability . Financial 
losses worsened each year . 
 
ix. Selling  price  
 2015  2016  2017  2018  
Selling price  (index ) 100 101 102 105 
 
The industry selling price rose by 5 index points  over the whole investigation period , i.e. the 
equivalent of 1-point annual growth, which was insufficient  to achieve  profitab ility. 
 G/SG/N/8/MDG/5  
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  2  PROVIDE INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN 
IMPORTS OR AN INCREASE IN IMPORTS RELATIVE TO DOMESTIC PRODUCTION  
The product under investigation is being imported in greatly increased  quantit ies in both absolute 
terms and relative  to domestic production , as follows : 
 
i. Evolution  in imports in absolu te terms  
 
In absolute terms , the growth in imports is shown in the table.  
Imports  of the product under investigation showed an overall increase of  152 index points  over the 
whole investigation period , i.e. from 2015 to 2018. Despite a slight decrease between 2017 and 
2018, a comparison of imports for the first half of 2018 with the first half of 2019 again showed an 
increase of 46%. The sharpest and most significant  increase was from 2015 to 2016, namely 
108 index points . 
 
ii. Evolution  in imports relative to domestic production  
 
Relative to domestic  production, imports of the product under investigation also increased 
exponenti ally, rising from  100 to 260 index points  between  2015 and 2018, as shown in the table 
below :  
 2015  2016  2017  2018  
Import s (tonne s) 30,215 62,883 88,039 76,145 
Imports/ Production ( index ) 100 187 282 260 
3  UNFORESEEN DEVELOPMENTS  
The downward trend in export prices for edible oils, which has favoured the replacement of 
domestic  production with imports , and the redirection of exports of Indonesian and Malaysian palm 
oil to African markets because of consumer preferences in developed countries for rapeseed  oil, 
turnip rape oil and olive oil constitute unforeseen developments under  Article XIX of the 
GATT 1994. 
 
4  PRECISE DESCRIPTION OF THE PRODUCT INVOLVED  
Edible vegetable oils and margarine s classified under  Madagascar customs tariff codes  15079000, 
15071010 , 15089000, 15091010, 15099000, 15100000, 15111011, 15111091, 15119000, 
15121110, 15121900, 15122110 , 15122900, 15141100, 15141110, 15141900, 15149110, 
15149900, 15171000, 15179010, 15179090 and 15180000.  
 
5  PRECISE DESCRIPTION OF THE PROPOSED MEASURE  
The National Trade Remedies Authority (ANMCC ) has not yet proposed any measure to follow up 
on the finding of serious injury or threat thereof . It is currently  studying the recommendations to 
be made regarding  the appropriate  measures to be notified subsequently . 
 
6  PROPOSED  DATE OF INTRODUCTION OF THE MEASURE  
See reply to point 5 above . 
 
7  EXPECTED DURATION OF THE MEASURE  
See reply to point 5 above.  
 
8  IF THE EXPECTED DURATION IS OVER ONE YEAR , PROVIDE  THE EXPECTED TIMETABLE 
FOR PROGRESSIVE LIBERALI ZATION OF THE MEASURE  
See reply to point 5 above.   2015  2016  2017  2018  June  2018 June  2019 
Imports (tonne s) 30,215 62,883 88,039 76,145 22,932 33,501 
Imports (index ) 100 208 291 252 100 146 G/SG/N/8/MDG/5  
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  9  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 S AFEGUARD 
MEASURE:  
i. provide the deadlines for interested parties to comment or any other procedures 
relevant to the decision to apply the measures, and 
 
Details of the procedures and deadlines relating to the investigation are contained in the notice of 
initiation . 
 
ii. provide information regarding procedures for prior  consultation with those 
Members having a substantial interest as exporters of the product concerned . 
 
In accordance with  Article 12 .3 of the WTO Agreement on Safeguards , Madagascar is prepar ed to 
hold consultations with Members having a substantial interest as exporters of the product 
concerned  no later than  24 July 2 020. 
 
Request s for consultation s should  be sent to the Director -General of the ANMCC  at the following 
email address : dg.anmcc@gmail.com . 
 
Comments and request s for additional information should be sent to the following address : 
 
Monsieur Le Directeur Général de l'ANMCC  
Enceinte Ex conquête Antanimena - BP: 7653 
Email: dg.anmcc@gmail.com ; dg@anmcc.mg  
101- ANTANANARIVO  ̶ MADAGASCAR  
 
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