G/L/1402  
G/SG/N/13/MDG/2  
 
24 September 2021  
(21-7131) Page: 1/4 
Council for Trade in Goods  
Committee on Safeguards  Original: French  
 
  
NOTIFICATION UNDER ARTICLE 12.5 OF THE AGREEMENT  
ON SAFEGUARDS OF THE RESULTS OF A MID -TERM  
REVIEW REFERRED TO IN ARTICLE 7.4  
MADAGASCAR  
Blankets and Travelling Rug s 
The following communication, dated and received on 22 September 2021, is being circulated at the 
request of the delegation of Madagascar . 
 
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Pursuant to Article 12.5 of the Agreement on Safeguards, Madagascar hereby notifies the results of 
the mid -term review of the safeguard measure concerning imports of blankets and travelling rugs . 
1. Specify the measure and the product subject to the measure for which the mid -term 
review was conducted, and  provide reference to the WTO document that notified 
the safeguard measure subject to the review . 
The mid -term review concerns the safeguard measure applied to imports of blankets and travelling 
rugs classified under the following headings of the Madagasca n customs tariff nomenclature : 
63011000, 63012000, 63013000, 63014000  and 63019000.  
The application of this safeguard measure was notified to the WTO in document  G/SG/N/8/MDG/2 -
G/SG/N/10/MDG/2 -G/SG/N/11/MDG/2/Suppl.2 . 
2. Provide the dates of initiation and conclusion of the review . 
The review investigation was initiated on 26  January  2021 and was concluded on 31  August  2021. 
3. Describe the results of the review, providing some detail on the basis for reaching 
those results . 
(a) Import trends over th e safeguard application period  
i. Import trends in absolute term s 
In 2019, i mports of blankets and travelling rugs fell by 29% in relation  to 2018, while in 2020, a fall 
of around 19% was recorded in relation to 2019 . 
Imports of blankets and travelling rugs into Madagascar appear to have fallen significantly. However, 
the import statistics seem at odds with the reality of the market . Imported blankets and travelling 
rugs remain abundant and dominant in the market because of the new method of importing these 
products in bales of worn clothing and used fabrics , which has enabled importers to avoid paying 
any additional duty relat ed to the application of the safeguard measure. This method  also distorts 
the statistical data pertaining to imports of the product concerned . G/L/1402 • G/SG/N/13/MDG/2  
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  ii. Import trends in relative  terms  
The analysis revealed that , in 2020 , imports decreased in relative terms in relation to d omestic 
production by around 59 index points compared  to 2018. They decreased by six index points in the 
last two years, i.e. in 2020 in relation to 2019 . 
(b) Indica tors 
i. Market s hare taken by imports  
The market share of imported products is on a downward trend. This decline is, however, minimal, 
given that in 2020, their market share  fell by only two index points  in relation to 2019 . Despite this 
decline, the market share taken by imports remains very high, and imported blankets and travelling 
rugs continue to invade the domestic market . 
ii. Production  
The production volume of the domestic industry  (DI) rose by 52 index points in 2019 in relation to 
2018, while in 2020, which is the start of the second year  in which the measure was implemented, 
production fell slightly by 13 index points . 
iii. Sales and turnover  
Sales rose by five index points in 2019. This situation continued to improve in 2020, with an increase 
of 26 index points in relation to 2018 . 
A slight fall in turnover of three index points was recorded in 2019. This was due to the fall in selling 
prices that year, despite an increase in sales. 2020 saw a turnaround in the situation , with a recorded 
increase of 21 index points in relation to 2018  thanks not only to a rise in the selling price compared  
to 2019, but also sales in 2020 reaching their highest level in the three -year period . 
iv. Production capacity utilization  rate 
The production capacity utilization rate of the DI producin g blankets and travelling rugs is consistent 
with the trend in production. It increased by 20 index points in 2019, then fell by seven index points 
in 2020. From 2018 to 2020, the company was nevertheless able to increase its utilization rate by 
13 index p oints. It was, however,  unable to fully exploit its existing production capacity because its 
utilization rate remains low . 
v. Emplo yment  
The DI has made efforts with regard to employment given that recruitment took place in 2020. A 
rise of 17 index points in the level of employment was recorded  in relation to 2018 . 
vi. Productivit y 
In terms of productivity, the DI recorded growth of 52 index points between 2018 and 2019. From 
2019 to 2020, this productivity fell by 33 index points. As noted above, the company began recruiting 
in 2020, while its production level fell. This link betwee n the increase in staff and the fall in production 
means that productivity is down for 2020 . 
vii. Inventory  
The inventory volume rose by 21 index points  in 2019 , then fell in 2020. Th e increase in 2019 
coincides with the significant increase in production. The preceding analyses show that  the volume 
of production fell in 2020, while the volume of sales increased. This is why the inventory volume fell 
by 37 index points for 2020 compared to the previous year . G/L/1402 • G/SG/N/13/MDG/2  
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  viii. Profitability  
As of 2019, the company was finally able  to make a profit on  blankets and travelling rugs. Profits  
remained on course  and increased in 2020. A rise of 74 index points was recorded in 2020 in relation 
to 2019. The profit recorded by the company in 2019 is double the loss it suffered in 2018, and that 
in 2020 is almost triple the amount. Nevertheless, the sum of the profits made in the last two years 
amounts to  considerably less than the accumulated company losses of all the other years preceding 
the application of the safeguard measure . 
ix. Selling price  
The year 2019 saw prices fall by nine index points in relation to 2018. In 2020, prices rose slightly 
by seven index points in  relation to the previous year, but did not exceed the selling price for the 
base year 2018 . 
x. Production costs and cost price  
Production costs followed an upward trend during the period under consideration. They rose by 11 
index points for the year 2019 whe n compared to 2018, and by seven index points in 2020 when 
compared to the previous year. The cost price fell by 13 index points in 2019 in relation to 2018, 
then rose in 2020, but is still lower than in 2018 . 
(c) Conclusion of mid -term review  
The review investigation revealed a slight improvement in the situation of the DI thanks to its efforts 
during the implementation of the safeguard measure. The DI has come out of  the critical state that 
it was in for a number of years and has benefited fro m the new conditions of competition with 
imports . 
However, the two years of implementation of the measure are not sufficient to remedy the serious 
injury that the DI has suffered over several years. Furthermore, imports of blankets and travelling 
rugs in b ales of worn clothing and used fabrics constitute another injury factor for the DI and 
threaten the effectiveness of the said measure . 
In light of  the foregoing, it has been concluded that the safeguard measure has had a mildly  positive 
effect on the DI , but that the improvements observed are not sufficient to increase the pace of 
liberalization of the measure. For this reason, the safeguard measure  on imports of blankets and 
travelling rugs will remain in place unchanged . 
4. Indicate whethe r: 
i. the measure has been, or will be, withdrawn as a result of the review . If 
yes, then indicate the date of withdrawal; and , 
The existing safeguard measure concerning imports of blankets and travelling rugs  is to remain in 
place. 
ii. the pace of liberalization has been, or will be, increased as a result of the 
review . If yes, then indicate the revised time -table for progressive 
liberalization . 
The pace of liberalization has not been modified . 
In accordance with Article 9.1 of the Agreement on Safeguards, the measure shall not be applied 
against imports of blankets and travelling rugs  originating in the following developing country 
Members of the WTO : 
Afghanistan;  Albania;  Angola;  Antigua and Barbuda;  Argentina;  Armenia;  Bahrain;  Bangladesh;  
Barbados;  Belize;  Benin;  Bolivi a, 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;  G/L/1402 • G/SG/N/13/MDG/2  
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  Dominica;  Dominican Republic; Ecuador;  Egypt;  El Salvador;  Eswatini ; Fiji; Gabon;  Gambia;  
Georgia;  Ghan a; Grenada;  Guatemala;  Guinea;  Guinea -Bissau;  Guyana;  Haiti;  Honduras;  India;  
Indonesia;  Israel;  Jamaica;  Jordan;  Kazakhstan;  Kenya;  Kuwait;  Kyrgyz Republic; Lao People's 
Democratic Republic; Lesotho;  Liberia;  Malawi; Malaysia;  Maldives;  Mali; Mauritania;  Mauritius;  
Mexico;  Moldova;  Mongolia;  Montenegro;  Morocco;  Mozambique;  Myanmar;  Namibia;  Nepal;  
Nicaragua;  Niger;  Oman;  Pakistan;  Panama;  Papua New Guinea;  Paraguay;  Peru;  Philippines;  
Qatar;  Rwanda;  Saint Kitts and Nevis; Saint Lucia;  Saint Vi ncent and the Grenadines; Samoa;  Saudi 
Arabia; Senegal;  Seychelles;  Sierra Leone;  Solomon Islands; South Africa; Sri Lanka;  Suriname;  
Tajikistan;  Tanzania;  Thailand;  The former Yugoslav Republic of Macedonia; Togo;  Tonga;  Trinidad 
and Tobago;  Tunisia;  Turkey;  Uganda;  Ukraine;  United Arab Emirates; Uruguay;  Vanuatu;  
Venezuela,  Bolivarian Republic of;  Viet Nam;  Yemen;  Zambia;  Zimbabwe.  
Additional information and comments should be sent to the following address : 
 
Monsieur Le Directeur Général de l 'ANMCC  
Enceinte Ex conquête Antanimena - BP: 7653  
Tel.: +261 34 05  441 41  
Webs ite: www.anmcc.mg  
Email : dg.anmcc@gmail.com ; dg@anmcc.mg  
101- ANTANANARIVO – MADAGASCAR  
 
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