G/SG/N/10/MDG/3/Suppl.1  
G/SG/N/11/MDG/3/Suppl.3  
 
7 June 2023  
(23-3896)  Page: 1/5 
Committee on Safeguards  Original: French  
 
  
NOTIFICATION UNDER ARTICLES 7.2 AND 12.1(C) OF THE AGREEMENT ON SAFEGUARDS 
(EXTENSION OF THE EXISTING MEASURE)  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2, OF THE AGREEMENT ON 
SAFEGUARDS  
MADAGASCAR  
Detergent Powder  
Supplement  
The following communication, dated and received on 2 June 2023, is being circulated at the request 
of the delegation of Madagascar.  
 
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Pursuant to Articles 7.2 and 12.1 (c) of the Agreement on Safeguards, the Committee on Safeguards 
is hereby n otified of the outcome of the review investigation in respect of the extension of the 
safeguard measure on imports of detergent powder to Madagascar.  
Pursuant to Article 12.3 of the Agreement on Safeguards, Madagascar is ready to hold consultations 
with those Members having a substantial interest as exporters of the product concerned.  
1  NOTIFICATION UNDER ARTICLES 7.2 AND 12.1(C) OF THE AGREEMENT ON 
SAFEGUARDS UPON TAKING A DECISION TO EXTEND A SAFEGUARD MEASURE  
1.1  Evidence that the safeguar d measure continues to be necessary to remedy or prevent 
serious injury and that the industry concerned is adjusting  
In order to determine whether the safeguard measure continues to be necessary to prevent or 
remedy serious injury, and whether the domestic  industry has made adjustments, a comprehensive 
analysis was undertaken of relevant indicators having a bearing on the economic situation of the 
domestic detergent powder industry, as well as import trends over the review period of 2019 
to 2022.  
a. Import tre nds 
 2019  2020  2021  2022  
Imports (kg)  7,750,000  4,313,700  1,228,755  2,591,939  
Imports (index base 100 = 2019)  100 56 16 33 
Imports/production  
(index base 100=2019)  100 26 8 20 
The application of the safeguard measure has had the expected effect on imports of detergent 
powder to Madagascar. During the period under review, there was a significant and steady reduction 
in imports both in absolute terms and relative to domestic produ ction. However, imports ticked up 
again suddenly in 2022, to the alarm of the domestic industry. This therefore points to the continued 
growth of imports in the future in the absence of the safeguard measure.  G/SG/N/10/MDG/3/Suppl.1 • G/SG/N/11/MDG/3/Suppl.3  
 
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  b. Situation of the domestic industry  
 
2019  2020  2021  2022  
Market share of imports  
(index base 100=2019)  100 48 18 37 
Market share of the domestic industry (index base 
100=2019)  100 172 214 188 
Production (index base 100 = 2019)  100 211 197 171 
Sales (index base 100 = 2019)  100 199 192 170 
Production capacity (index base 100 = 2019)  100 194 210 253 
Production capacity utilization rate  
(index base 100=2019)  100 109 94 68 
Inventories (index base 100 = 2019)  100 1,641  2,284  2,421  
Employment (index base 100 = 2019)  100 292 333 350 
Productivity (index base 100 = 2019)  100 72 59 49 
Financial results (index base 100 = 2019)  100 1,051  1,503  1,821  
Following the application of the safeguard measure, the market share of imports decreased 
significantly. A steady decrease of 63 index points was recorded during the review period. However, 
the market share of imports grew by 19 index points in 2022 compared to 2021.  
The table above shows that the domestic industry was able to double its production volume in the 
first year that the measur e was applied. But it was unable to sustain that performance in the 
subsequent years, as evidenced by a steady decrease in the production volume over the last two 
years.  
The industry's sales followed the same trend as that of domestic production. After ga ining 99 index 
points in 2020, it lost 29 index points over the last three years of the review period.  
Production capacity grew by 153 index points during the application period of the measure as a 
result of the domestic industry's adjustment plan.  
The tr end in the industry's inventory volume reflects its difficulties in selling its product. 
Consequently, the year in which the inventory volume was greatest is the year in which the sales 
volume was the lowest in the last three years.  
In addition to strength ening production capacity, building up the workforce is one of the adjustment 
measures taken by the domestic industry.  
The steady decline in productivity over the last three years that the measure was applied indicates 
that the domestic industry was unable  to capitalize on its investments in terms of production capacity 
and its workforce.  
In terms of profitability, the safeguard measure appears to be advantageous to the domestic industry 
because there was a significant and steady improvement in the financial results recorded during the 
review period. However, these results remain insufficient relative to the domestic industry's volume 
of turnover and the investments it made.  
Generally, in view of the foregoing, most of the economic indicators analyse d improved relative 
to 2019 levels. Production, sales, employment, market share and financial results saw increases 
of 71, 70, 250, 88 and 1,721 index points, respectively, at the end of the safeguard measure's 
application period. However, the sustainabili ty of these increases is questionable as a result of the 
downward trend in relevant indicators, such as production, sales and market share, from the second 
half of the measure's application period. This suggests that imports of the product under 
considerat ion continue to cause serious injury to the domestic industry. Moreover, at the end of the 
review period, the imports ' return to growth in 2022 led to a considerable decrease in the domestic 
industry's sales, production and market share. Thus, not extendin g the safeguard measure could 
lead to imports retaking control of the domestic market, putting the domestic industry back into a 
critical situation.  G/SG/N/10/MDG/3/Suppl.1 • G/SG/N/11/MDG/3/Suppl.3  
 
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  1.2  Description of the product subject to the safeguard measure  
The product subject to the review investigatio n is detergent powder for household and industrial use 
based on organic surface -active agents intended for washing preparations, auxiliary washing 
preparations and cleaning preparations, whether or not put up for retail sale. It is imported into 
Madagascar  under the following HS tariff headings: 340249, 340250, and 340290.   
1.3  Description of the proposed measure  
The proposed measure takes the form of an additional duty of 29% of the c.i.f. value.  
1.4  Proposed date of introduction of the measure  
The proposed measur e will enter into force on 3 June 2023.  
1.5  Expected duration of the measure  
The expected duration of the proposed measure is four (4) years.  
1.6  Expected timetable for progressive liberalization of the measure  
Period  Additional duty  
3 June 2023 -31 December 2023  29% 
2024 28% 
2025 27% 
2026 26% 
1 January 2027 -2 June 2027  25% 
1.7  If the notification relates only to a finding of serious injury or threat thereof, and does 
not relate to a decision to apply or extend a safeguard measure  
Not applicable.  
1.8  If the notification relates to a decision to apply or extend a safeguard measure, 
Members are encouraged to provide the following information:  
a. The major exporting Members of imports of the product involved.  
The major exporting countries of detergent powder to Madagascar are Egypt, Tükiye and Mauritius.  
b. If there are any exporting Members to which the measure does not apply for any 
reason other than the application of Article 9.1, the names of such exporting 
Members and reasons for non -application of the measure.  
Not applicable.  
1.9  Information relating to the extension of a safeguard measure  
a. Evidence that the safeguard measure continues to be necessary to prevent or 
remedy serious injury or threat thereof  
The resu lts of the investigation allowed the authority to conclude that the safeguard measure was 
beneficial to the domestic industry. Most of the economic indicators analysed improved over the 
whole of the review period, as evidenced by the annual trends in marke t share, sales, production, 
employment and financial results. However, this improvement is still insufficient given the 
emergence of a downward trend in some indicators as of the second half of the measure's application 
period. Thus, the recovery in import s in 2022 significantly reduced the domestic industry's 
production and sales. It is therefore undeniable that not extending the safeguard measure could 
lead to the continued growth of imports, making it impossible to eliminate the injury and to ensure 
the effectiveness of the adjustment of the domestic industry.  G/SG/N/10/MDG/3/Suppl.1 • G/SG/N/11/MDG/3/Suppl.3  
 
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  b. Evidence that the industry concerned is adjusting  
The domestic industry has implemented its adjustment plan to increase the volume and quality of 
its products through various adjustment measures con cerning technology, employment and 
management.  
The improvement seen in most of the economic indicators analysed as part of the review 
investigation is clear evidence of the adjustments undertaken by the domestic industry. However, 
other adjustment measures  are being implemented which require the extension of the safeguard 
measure.  
c. Reference to the WTO document that notified the initial application of the measure  
The initial application of the measure was notified in WTO document: G/SG/N/8/MDG/3   - 
G/SG/N/10 /MDG/3   - G/SG/N/11/MDG/3/Suppl.2.   
d. Duration of the measure from initial application till the date at which it will be 
extended  
Madagascar applied a safeguard measure on imports of detergent powder for a period of four years, 
from its entry into force on 3  June 2019 to 2 June 2023. Madagascar plans to extend this safeguard 
measure for a further four years.  
e. Precise description of the measure in place prior to the date of extension  
The latest version of the measure in force can be found in notification: G/L/1 401 - 
G/SG/N/13/MDG/1 . 
f. Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision(s) made by the competent authority.  
The official documents regarding the investigation and the final decision c an be found at: 
www.anmcc.mg . 
2  NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2, OF THE AGREEMENT ON SAFEGUARDS  
2.1  Description of the product subject to the safeguard measure  
The product subject to the review investigation is detergent powder for household and industrial use 
based on organic surface -active agents intended for washing preparations, auxiliary washing 
preparations and cleaning preparations, whether or not put up f or retail sale. It is imported into 
Madagascar under the following HS tariff headings: 340249, 340250, and 340290.   
2.2  Description of the proposed measure  
The proposed measure takes the form of an additional duty of 29% of the c.i.f. value.  
2.3  Developing countries to which the measure is not applied under 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; 
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; Gambia; 
Georgia; Ghana; Grenada; Guatemala; Guinea; Guinea -Bissau; Guyana; Haiti; Honduras; India; 
Indonesia; Israel; Jamaica; Jordan; Kazakhstan; Kuwait; Kyrgyz Republic; Lao People's Democratic 
Republi c; Lesotho; Liberia; Malawi; Malaysia; Maldives; Mali; Marshall Islands; Mauritania; Mexico; 
Moldova; Mongolia; Montenegro; Morocco; Mozambique; Myanmar; Namibia; Nepal; Nicaragua; 
Niger; North Macedonia; Oman; Pakistan; Panama; Papua New Guinea; Paraguay;  Peru; Philippines; G/SG/N/10/MDG/3/Suppl.1 • G/SG/N/11/MDG/3/Suppl.3  
 
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  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; Togo; Tonga ; Trinidad and Tobago; Tunisia; Uganda; 
Ukraine; United Arab Emirates; Uruguay; Vanuatu; Venezuela, Bolivarian Republic of; Viet Nam; 
Yemen; Zambia; Zimbabwe.  
3  OFFER OF CONSULTATIONS UNDER ARTICLE 12.3  
In accordance with Article 12.3 of the Agreement on Saf eguards, Madagascar is ready to hold 
consultations on the proposed safeguard measure with those Members having a substantial interest 
as exporters of the product concerned.  
4  FURTHER INFORMATION  
Further information may be obtained from:  
Monsieur Le Directeu r Général de l'ANMCC  
Enceinte Ex -Conquête Antanimena, Antananarivo 101 - Madagascar  
Tel.: +261 34 05  441 41  
Email : dg.anmcc@gmail.com  / dg@anmcc.mg  
Website: www.anmcc.mg  
 
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