G/L/1423  
G/SG/N/13/MDG/3  
7 January  2022 
(22-0175) Page: 1/3 
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 ARTI CLE 7 .4 
MADAGASCAR  
Pasta 
The following communication, dated and received on 2 3 December 2 021, 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 pasta in the  form of spaghetti, 
macaroni or noodles or in any other form . 
 
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 pasta in the form of 
spaghetti, macaroni or noodles or in any other form  classified under the following headings of the 
Madagascan customs tariff nomenclature : 1902 11 00, 1902 19 00, 1902 20 00 and 1902 30 00 . 
 
The application of this safeguard measure was notified to the WTO in documents 
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 . 
 
2. Provide the dates of initiation and co nclusion of the review.  
 
The review investigation was initiated on 2 5 June 2 021 and was concluded on 2 3 December  2021. 
 
3. Describe the results of the review, providing some detail on the basis for 
reaching those  results . 
 
a) Import trends over the safeguard application period  
 
Imports of pasta fell by 18 index points over the two -year safeguard application period . 
 
In relation to domestic production, imports decreased by nine index points between 2019, the year 
the measure was first applied, and 2020. 
 
b) Indica tors 
 
i. Cons umption  
 
Consumption was largely stable between 2018 and 2019, decreasing slightly by one index point . 
From 2019 to 2020, consumption  fell by seven index points because  of the slowdown in almost the 
entire sector of activity as a result of  the COVID -19 pandemic . G/L/1423 • G/SG/N/13/MDG/3  
- 2 - 
  ii. Market share taken by imports  
 
The market share taken by imports decreased during the period under review . From 2018 to 2019, 
a drop of 32 index points was recorded , followed b y a drop of 15 index points in 2020 . Nevertheless, 
imported pasta continues to account for a significant share of the market . 
iii. Production  
 
The domestic industry's production volume rose considerably during the three years under review . 
The highest level was recorded in 2020. From 2019 to 2020, production rose by only 83 index points, 
which is considered  low compared to the increase between 2018 and 2019 . 
iv. Sales and turnover  
 
The domestic industry's turnover showed  an upward trend . From 2019 to 2020 , it rose from  349 
to 506 index points, an increase of 156 index points . 
 
The analysis of the trend in the domestic industry's sales showed an annual increase . During the 
second year in which the safeguard measure was applied, i.e. 2020, a  rise of 72 index points was 
noted in relation to the previous year , an increase that was not really significant compared to the 
improvement between 2018 and  2019. 
 
v. Production capacity utilization rate  
 
Investments made by the domestic industry led to a  production capacity increase of 30 index points 
during the 2019 -2020 period . In 2019, the rate of utilization of total production capacity  was 54 %. 
This rate remained stable for the following year . 
vi. Emplo yment  
 
The level of employment rose by 80 index points in 2019 in relation to 2018 . This trend continued 
in 2020, with an increase of 74 index points in relation to  2019. 
 
vii. Productivit y 
 
Having recorded a rise in productivity of 74 index points in the measure's first year of application , 
the domestic industry lost 19 index points in the second year . 
 
viii. Inventory  
 
The 2020 inventory level was almost double the 2019 level  because the rate of sales was unable to 
keep up with the increase in the volume of production . 
 
ix. Profitability  
 
The domestic industry emerged from its financial profitability deficit before the application of the 
measure in 2019 . This improvement continued in 2020, but at a slower pace compared to the first 
year. 
In 2018, i.e. before the safeguard measure was applied, the domestic industry recorded  a 
considerable loss . The industry began to recover  in 2019 . Regarding profits, an increase of 34  index 
points was recorded in 2020 in re lation to 2019, however, in relation to turnover , profits  are still 
minimal, accounting for only 3 %. 
c) Conclusion of mid -term review  
 
In conclusion , the decline in imports brought about by  the introduction of the safeguard measure 
enabled the domestic pasta industry to engage in efforts to improve its economic indicators . The 
industry  succeeded in  implement ing an extensive adjustment plan . Domestic producers also made 
new investments , which  led not only to enhance d production capacity , but also to the creation of 
new products . 
 G/L/1423 • G/SG/N/13/MDG/3  
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  Nevertheless , not all the results expected were achieved during th is two-year application period . 
The application of the present safeguard measure is therefore still necessary in order to facilitate 
the adjustment efforts of producers and to enable them to continue  the restructuring process . 
 
4. Indicate  whether : 
 
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 pasta 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 of the measure has not been modified . 
 
In accordance with Article 9.1 of the Agreement on Safeguards, the measure shall not be applied 
against imports of pasta originating in the following developing country Members of the WTO : 
 
Afghanistan, Albani a, Angola, Antigua  and Barbuda, Argentin a, Arm enia, Kingdom of  Bahrain, 
Bangladesh, Barbad os, Belize, B enin, Plurinational State of  Bolivi a, Bo tswana, Br azil, 
Brunei Darussalam, Burkina Faso, Burundi, Cabo Verde, Cambo dia, Camero on, Central African 
Republic, Chad, Chile, Colombi a, Congo, Costa Rica, Côte d'Ivoire, Cuba, Democratic Republic of the 
Congo, Djibouti, Domini ca, Dominican Republic, Ecuador, El Salvador, Eswatini, Fiji, Gabon, Gambi a, 
Georgia , Ghana, Grenad a, Guatemala, Guin ea, Guin ea-Bissau, Guyana, Ha iti, Honduras, Ind ia, 
Israel, Jama ica, Jordan, Kazakhstan, Kenya, State of Kuwait , Kyrgyz Republic, Lao People's 
Democratic Republic, Lesotho, Lib eria, Malawi, Malaysia, Maldives, Mali, Marshall Islands, 
Mauritani a, Mexi co, Republic of  Moldova, Mongoli a, Mont enegro, Morocco, Mozambique, Myanmar, 
Namibi a, Nepal, Nicaragua, Niger, Nig eria, Oman, Pakistan, Panama, Pap ua New Guinea, Paraguay, 
Peru, Philippines, Qatar, Rwanda,  Saint Kitts and Nevis, Saint Lucia,  Saint Vincent and the 
Grenadines, Samoa, Kingdom of Saudi Arabia, Senegal, Seychelles, Sierra Leone, Solomon Islands, 
South Africa, Sri Lanka, Suriname, Tajikistan, Tanzani a, Tha iland, The former Yugoslav Republic of 
Macedonia, Togo, Tonga, Trini dad and Tobago, Uganda, Ukraine, United Arab Emirates, Uruguay, 
Vanuatu, Bolivarian Republic of Venezuela , Viet Nam, Y emen, Zambi a, 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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