G/L/1401  
G/SG/N/13/MDG/1  
 
24 September 2021  
(21-7127) 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 ARTICLE 7.4  
MADAGASCAR  
Detergent Powder  
The following communication, dated and received on 22 September 2021, is being circulated at the 
request of the delegation of Madagascar.  
 
 
_______________  
 
 
Pursuant to Article 12.5 of the Agreement on Safeguards, M adagascar  hereby notifies the results of  
the mid -term review of the safeguard measure concerning imports of  detergent powder . 
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 m id-term review concerns  the safeguard measure applied to  imports of detergent powder  
classified under heading 34022000  of the Madagascan customs tariff nomenclature . 
The application of th is safeguard measure was notified to the WTO in document  G/SG/N/8/MDG/3  ‒ 
G/SG/N/10/MDG/3  ‒ G/SG/N/11/MDG/3/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 the safeguard application period  
i. Import trends in absolute terms  
Imports of detergent powder fell by 53 index points in 2019, the year the measure was first imposed, 
in relation to 2018. This trend continued in 2020, with imports decreasing by 21 index points . 
ii. Import trends relative to domestic production  
When comparing imports to domestic production, a very significant decline  was observed in 2019 
(97 index points  in just one year ). The slowdown con tinued in 2020, but at a less rapid pace, and 
was estimated at 70% in relation to 2019. This drop was due to the reduction in imports in absolute 
terms, the improved situation of existing local producers, and , above all , the arrival on the scene of 
new det ergent powder producers . G/L/1401 • G/SG/N/13/MDG/1  
- 2 - 
  (b) Indicat ors 
i. Share of domestic market taken by imports  
The market share taken by imports contracted during the review period. Compared to the base year, 
imports fell by 18 index points in 2019, followed by 31 index points in 2020 , in terms of market 
share. In spite of this reduction in market share, imports still account for  a sizeable amount , around 
half of the market . 
ii. Domestic production  
Having managed to recover part of the market, the domestic industry (DI) increased its production 
volume. Between  2018 and 2020, domestic production rose by 2,953 index points  (1,525 index 
points  in 2019). This situation is linked to the efforts made by ex isting producers  and the creation 
of two new industries . 
iii. Sales and turnover  
In parallel with the developments in domestic production, the sales volume and turnover of the DI 
have also significantly improved over the last two years. The DI has managed to gr adually recover 
part of the market. In 2020 , the sales volume and turnover levels were, respectively,  2,918 and 
4,823 index points  higher than in 2018 . 
iv. Inventor ies 
An uneven trend in the DI's inventor ies was observed during the period under review. It should be 
noted that a large part of the DI's output is produced to order and the inventory volume accounts 
for only a tiny fraction  of domestic production . 
v. Employment and productivity  
The opening of new factories automatically resulted in the recruitment of new workers and technical 
staff. Increases of 1,188 and 1,850 index points were noted in 2019 and 2020 respectively . 
In light of  the COVID -19 health cr isis, productivity decreased in 2020 due to the in evitable reduction 
in working hours during lockdown  periods . 
vi. Production capacity and production capacity utilization  
The DI's production capacity grew considerably during the review period - by 1,019 index points - 
following the creation of two new industr ies. 
The production capacity utilization level rose steadily thanks to the efforts made by the DI in terms 
of production. Nevertheless, it is still not high enough to cover the DI's operating costs . 
vii. Costs, selling price and profitability  
The increase in th e scale of production following the gain in market share enabled local industries to 
reduce their unit cost price. As a result , they have also been able to lower their selling prices, which 
has made them more competitive on the domestic market. The reductions in the average cost price 
and the average selling price amounted to  around 33 index points and 36 index points , respectively,  
during the period 2018 -20. 
As of 2019, the DI was able  to make a profit. Performance subsequently improved by a further 290 
index points in 2020 compared to 2019 . It should be noted, however, that these profits remain 
negligible in financial terms, as they represent  only a tiny fraction of the turnover – around 1% in 
2019 and 2% in 2020 . G/L/1401 • G/SG/N/13/MDG/1  
- 3 - 
  (c) Conclusion of mid -term review  
In light of the foregoing , the results of the review investigation  reveal that the existing safeguard 
measure has led to a drop in the volume of imports of detergent powder entering Madagascar and  
that the situation of the DI producing detergent powder has improved after two years of 
implementation of the safeguard measure. Nevertheless, the situation remains fragile and the  sector 
needs more time to recover . 
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 detergent powder is to remain in place . 
ii. the pace of liberalization has been, or w ill be, increased as a result of the 
review . If yes, then indicate the revised time -table for progressive 
liberalization . 
In order for the  measure  to fulfil its purpose , its form has been modified as shown in the table below . 
The new form is considered les s restrictive than before , and since the DI's situation has improved, 
the pace of liberalization of the measure has been  increased . 
In accordance with Article 9.1 of the Agreement on Safeguards, the measure shall not be applied 
against imports of detergent powder  originating in the following developing country Member s 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;  
Dominica;  Dominican Republic;  Ecuador;  Egypt;  El Salvador;  Eswatini ; Fiji; Gabon;  The Gambia;  
Georgia;  Ghana;  Grenada;  Guatemala;  Guinea;  Guinea -Bissau;  Guyana;  Haiti;  Honduras;  India;  
Israel;  Jamaica;  Jordan;  Kazakhstan;  Kenya;  Kuwait;  Kyrgyz Republic; Lao People's Democratic 
Republic; Lesotho;  Liberia;  Malawi;  Malaysia;  Maldives;  Mali; Marshall Islands; 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 Vincent 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  
 
__________  Year  Additional  ad valorem  duty 
2021 35% 
2022 32% 
1 January to  2 June 2023 29%