G/SG/Q2/MDG/1  
 
29 March 2019  
(19-1982) Page: 1/3 
Committee on Safeguards  Original: English  
 
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 SAFEGUARD S 
QUESTIONS POSED BY MAURITIUS  REGARDING  
THE NOTIFICATION S OF MADAGASCAR1 
(Pasta)  
The following communication, dated 28 March 2019 , is being circulated at the request of the 
Delegatio n of Mauritius . 
 
_______________  
 
 
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?  
 
Question 2  
 
Does Madagascar intend to re -initiate the investigation in consideration of the procedures 
stipulated in Article 12 of the Agreement on Safeguards .  
 
Questions on "critical " circumstance s and injury  
Question 3  
 
According to the data provided, there is an upward trend in market share of domestic production 
in 2017 and for the first 6 months of 2018 . Can Madagascar please explain how it considers the 
situation to be "critical " within the me aning 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?  
 
                                                
1 G/SG/N/7/MDG/1 –G/SG/N/11/MDG/1 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.  G/SG/Q2/MDG/1  
 
- 2 - 
 
  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 uti lisation, 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/o r National Statistics Office and other relevant institutions? If so, please provide 
official data with respect to the various parameters being analysed.  
 
Questions on Product Scope  
Question 7  
 
The imposition of Madagascar 's provisional safeguard appears t o be based on preliminary findings 
of injury for pasta products, including noodles. Can Madagascar please explain the basis for 
combining past a and noodles as like or competitive products in a single investigation ?  
 
Question 8  
 
Could Madagascar please sub mit disaggregated data for pasta and noodles for the last 5 years 
(2013 -2018)?  
 
Question 9  
 
Taking into account the fact that here is a single company producing instant noodles in 
Madagascar, namely Salone:  
 
• What is the capacity of noodle production in Mad agascar and more specifically the capacity 
of machines used by the local manufacturer?  
 
• What is the total capacity of the domestic industry to meet demand for noodles and/or pasta 
in the Malagasy market?  
 
• Has Madagascar determined the anticipated impact of  a safeguard on prices in (a) the 
noodle market, and (b) the pasta markets in Madagascar?  
 
• 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 consu mer welfare should 
the safeguard be imposed.  
 
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?  
 
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 
products?  
 G/SG/Q2/MDG/1  
 
- 3 - 
 
  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.  
 
Question 13  
 
Please provide an analysis of the length of time that would be necessary for the safeguards to 
remain in place i n order to avoid serious injury to the domestic industry producing (a) noodles 
and (b) pasta products .  
 
 
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