G/SG/N/6/MDG/11  
G/SG/N/7/MDG/11  
G/SG/N/11/MDG/11  
 
30 October 2023  
(23-7316) Page: 1/6 
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 MEASURE REFERRED TO IN ARTICLE 6  
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2, OF THE AGREEMENT ON SAFEGUARDS  
MADAGASCAR  
Napkins (diapers) and sanitary towels  
The following communication, dated and received on 26 October 2023, is being circulated at the 
request of the  delegation of Madagascar.  
 
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In accordance with Articles 12.1(a) and 12.4 of the Agreement on Safeguards, Madagascar hereby 
notifies the Committee on Safeguards of the initiation of a safeguard investigation into imports of 
napkins (diaper s) and sanitary towels. It is being notified prior to taking a provisional safeguard 
measure referred to in Article 6 of the Agreement, on imports of napkins (diapers) and sanitary 
towels to Madagascar. The Committee is also hereby notified, in accordance with Article 9, 
footnote  2, of the Agreement on Safeguards, of the decision not to apply the proposed safeguard 
measure against imports originating in developing countries.  
A- NOTIFICATION UNDER ARTICLE 12.1 (A) OF THE AGREEMENT ON SAFEGUARDS ON 
INITIATION OF AN INVESTIGATION AND THE REASONS FOR IT  
Faced with imports of napkins (diapers) and sanitary towels in such increased quantities as to be 
detrimental, the domestic industry has filed a petition with the National Authority for Trade Remedies 
(ANMCC) requesting the implementation of a safeguard measure pursuant to Article XIX of the GATT, 
the WTO Agreement on Safeguards and Decree No. 2017 -695 of 16 August 2017 establishing the 
procedures applicable to trade remedies in Madagascar.  
The examinati on of the petition led to the initiation of a safeguard investigation into imports of 
napkins (diapers) and sanitary towels to Madagascar. The key points relating to the initiation of this 
investigation are as follows:  
1. Date of initiation  
The investigation was initiated on 25 October 2023, the date on which the notice of initiation was 
published in the newspapers La Vérité  and TARATRA . G/SG/N/6/MDG/11 • G/SG/N/7/MDG/11 • G/SG/N/11/MDG/11  
 
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  2. Product under consideration  
The product under consideration is "napkins (diapers) and sanitary towels" imported into Madagas car 
under Harmonized System customs tariff code 96190000 entitled "Sanitary towels (pads) and 
tampons, napkins (diapers), napkin liners and similar articles", of the Madagascar customs tariff.  
3. Exporting countries  
The main countries exporting napkins (diape rs) and sanitary towels to Madagascar are Egypt, 
Türkiye, China and Belgium.  
4. Reasons justifying the initiation of the investigation  
The domestic industry producing like and directly competitive products has provided evidence of the 
serious injury caused b y the considerable increase in imports of napkins (diapers) and sanitary 
towels to Madagascar. The increase is evident in both absolute and relative terms compared to 
domestic production during the investigation period between August 2020 and July 2023. Th e 
situation of the domestic industry is alarming in view of the significant and almost universal 
deterioration of its performance indicators, including production, sales, market share, production 
capacity utilization, productivity and, above all, profits a nd losses. It is thus found that all of the 
conditions required for the initiation of a safeguard investigation have been met.  
5. Duration of the investigation  
The investigation will last for around 9 months and may be extended up to 12 months.  
6. Further information  
Interested parties must make themselves known to the ANMCC, the investigating authority, within 
a period of 30 days after the initiation of the investigation.  
Any information or comments that interested parties may wish to submit, and r equests for 
questionnaires, must be submitted in writing to the ANMCC within a period of 30 days after the 
initiation of the investigation.  
The ANMCC may organize public hearings, either at the request of interested parties or ex officio , 
so as to enable interested parties to present evidence and, in particular, to have the opportunity to 
respond to the presentations of other parties and to ma ke their views known, and to defend their 
interests.  
Replies to the questionnaire and any other relevant information that the parties wish to submit must 
be sent to the ANMCC no later than 6 December 2023.  
If the replies to the questionnaire and any additi onal information requested from the interested 
parties within the framework of this investigation is not provided within the specified time frame, 
decisions will be made on the basis of the best information available. This will also be the case if 
informat ion is erroneous or incomplete.  
B- NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON SAFEGUARDS 
BEFORE TAKING A PROVISIONAL SAFEGUARD MEASURE REFERRED TO IN 
ARTICLE  6 
1. Product covered by the provisional measure  
Napkins (diapers) and sanitary towels imported  into Madagascar under Harmonized System customs 
tariff code 96190000 entitled "Sanitary towels (pads) and tampons, napkins (diapers), napkin liners 
and similar articles", of the Madagascar customs tariff.  
 G/SG/N/6/MDG/11 • G/SG/N/7/MDG/11 • G/SG/N/11/MDG/11  
 
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  2. Form of the provisional safeguard measure  
The pr ovisional safeguard measure will take the form of an additional duty to the ad valorem  customs 
duty, at a rate of 27%.  
3. Proposed date of introduction of the safeguard measure  
The provisional safeguard measure will enter into force as of 25 October 2023, the  date of publication 
of the relevant public notice.  
4. Expected duration of the provisional safeguard measure  
The provisional safeguard measure will be applied for 200 days from the date of its entry into force.  
5. Basis for application of the provisional safegu ard measure  
According to Article 6 of the Agreement on Safeguards: "In critical circumstances where delay would 
cause damage which it would be difficult to repair, a Member may take a provisional safeguard 
measure pursuant to a preliminary determination t hat there is clear evidence that increased imports 
have caused or are threatening to cause serious injury."  
During the investigation period, the operational performance of the domestic industry deteriorated 
due to a considerable decline in production and sales. This situation has created financial weaknesses 
for the company, characterized by low profitability and cash flow problems. In other words, the 
domestic industries face operational and financial problems that have jeopardized their viability. 
Theref ore, the industry is in a critical situation and is at risk of bankruptcy or closure.  
Analysis of the data provided by the industry makes it possible to determine the following:  
I- UNFORESEEN DEVELOPMENTS  
According to the domestic industry, the unforeseen development that led to the increase in imports 
of disposable baby diapers into Madagascar was a rise in production in Asian countries. Following 
the phasing out of the one -child policy, China has been expanding its production capacity as well a s 
its export volume to the rest of the world, which reached 869,316 tonnes of baby diapers in 2022, 
including 554 tonnes to Madagascar. Moreover, European countries, the main destinations for 
China's exports, have seen a fall in their birth rates which led  to fewer imports of disposable baby 
diapers. China has had to conquer other markets such as those of African countries, including 
Madagascar, in order to sell a large part of its production.  
With regard to sanitary towels, studies have been carried out on  menstrual hygiene products and it 
has been determined that disposable sanitary towels contain low quantities of harmful chemical 
substances. Using intimate menstrual products (namely tampons and menstrual cups that are 
internal hygiene products) carries a  risk of toxic shock syndrome. Following the publication of the 
results of these studies, producers of sanitary protection products were encouraged to focus largely 
on quality and to reduce or even avoid the use of chemicals in these products. They were al so 
recommended to indicate all the components on the packaging in order to better inform consumers. 
Furthermore, users are increasingly choosing organic products and this has led to a slowdown in the 
growth of the world's sanitary towel market, unlike the market in Madagascar where imports have 
increased significantly.  
II- INCREASE IN IMPORTS  
i. Absolute change in imports  
In absolute terms, the volume of imports of napkins (diapers) and sanitary towels trended upward 
during the period of investigation from August 2020 until the end of July 2023. It should be noted 
that the increase in the last year was very significant - in the order of 22 index points - compared 
to the base year.  G/SG/N/6/MDG/11 • G/SG/N/7/MDG/11 • G/SG/N/11/MDG/11  
 
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  ii. Relative change in imports  
Relative to domestic production, the sharp and sudden hike  in imports is evident in the third year of 
the period under consideration. A jump of 33 index points was recorded between the last two years. 
Over the entire investigation period, the relative increase in imports was in the order of 52 index 
points.  
III- SERIO US INJURY  
i- Rate of increase in imports  
The petition data showed that the volume of imports of the product concerned increased in absolute 
and relative terms during the period under consideration. This increase had a negative impact on 
most of the performanc e indicators of the domestic industry as outlined in the following subsections.  
ii- Market share taken by imports  
Relative to domestic consumption, the share of imports increased every year during the period under 
investigation. This share has largely exceeded half of domestic consumption since the second year.  
iii- Sales  
The total volume of sales decreased during the period under investigation. Consequently, a 
10-index - fall was recorded between the first two years. The situation worsened in the last year, as 
the decline in sales was in the order of 17 index points compared to the base year.  
iv- Domestic production  
The production volume of the domestic industry decreased st eadily over the period under 
consideration. The second year saw a reduction of 12 index points compared to the first year. 
Moreover, the decrease was even sharper in the third year, shrinking by 19 index points.   
v- Inventory  
The inventory grew by 68 index po ints between the first two years and 115 index points throughout 
the period of investigation. This points to the domestic industry's difficulties in selling its production.  
vi- Employment and productivity  
The domestic industry's workforce rose by 31 index poi nts during the period of investigation. 
Meanwhile, productivity was down 38 index points over the same period due to the decline in the 
total volume of its production.  
vii- Production capacity utilization  
The domestic industry is encountering problems in explo iting its production capacity fully. Moreover, 
the capacity utilization rate trended downwards by 12 and 39 index points in the second and third 
years, respectively, compared to the base year.  
viii- Profits and losses  
Profits were down by 27 index points in the second year. During the entire period of the investigation, 
the deterioration in the industry's profits reached 48 index points.  
IV- CAUSAL LINK  
The existence of a causal link between increased imports and serious injury to the domestic industry 
was establish ed on the basis of the following elements:  G/SG/N/6/MDG/11 • G/SG/N/7/MDG/11 • G/SG/N/11/MDG/11  
 
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  i. Effect of the increase in imports  
The increase in imports coincided with the injury suffered by the domestic industry. Imported 
products and domestic like products marketed in the domestic market offer consumers a multitude 
of choices, but the increase in imports into Madagascar put local producers at a serious disadvantage.  
ii. Effects of other factors  
1. Contraction in demand  
In general, local consumption of napkins (diapers) and sanitary towels has increas ed in the local 
market. These products are successful because a large proportion of consumers have started to use 
them. Contraction in demand is therefore discarded as an injury factor.  
2. Technology used  
The technology used in the manufacture of the product  concerned is identical whether they are 
imported or locally manufactured products, as local manufacturers use modern machines. Thus, this 
factor cannot therefore be considered a cause of the injury.  
3. Domestic competition  
The domestic industry is unable to exploit its production capacity fully. Despite the increase in 
domestic consumption, domestic production does not account for half of domestic demand. 
Therefore, domestic competition cannot be considered an injury factor.  
According to the foregoing, the Au thority concluded that the overall and significant impairment of 
all the economic indicators of the domestic industry producing like and directly competitive products 
to "napkins (diapers) and sanitary towels" during the period under consideration is due t o the 
increase in imports of that product into Madagascar. As a result, any other factor analysed other 
than increased imports has no connection with the serious injury caused to the domestic industry.  
V- OFFER OF CONSULTATIONS UNDER ARTICLE 12.4  
In accordan ce with Article 12.4 of the Agreement on Safeguards, Madagascar is prepared to hold 
consultations on the provisional safeguard measure with those Members having a substantial interest 
as exporters of the product concerned.  
VI- FURTHER INFORMATION  
Any requests for further information and correspondence relating to this investigation must be 
addressed to:  
Monsieur Le Directeur Général de l'ANMCC  
Enceinte Ex -Conquête Antanimena, Antananarivo 101 - Madagascar  
Email: dg@anmcc.mg  / dg.anmcc@gmail.com  
Website : http://www.anmcc.mg/  
C- NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2, OF THE AGREEMENT ON 
SAFEGUARDS  
Below is the list of developing countries excluded from the provisional safeguard measure because 
their exports represent less than 3% of Madagascar's total imports of napkins (diapers) and sanitary 
towels, and collectively account for not more than 9%. (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; G/SG/N/6/MDG/11 • G/SG/N/7/MDG/11 • G/SG/N/11/MDG/11  
 
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  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; 
Dominica; Dominican Republic; Ecuador; El Salvador; Eswatini; Fiji; Gabon; Gambia; Georgia; 
Ghana; Grenada; Guatemala; Guinea; Guinea -Bissau; Guyana; Haiti; Honduras; India; Indonesia; 
Israel; Jamaica; Jordan; Kazakhstan; Kenya; Ku wait; 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; 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; 
Surina me; Tajikistan; Tanzania; Thailand; Togo; Tonga; Trinidad and Tobago; Tunisia; Uganda; 
Ukraine; United Arab Emirates; Uruguay; Vanuatu; Venezuela, Bolivarian Republic of; Viet Nam; 
Yemen; Zambia; Zimbabwe.  
 
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