G/SG/N/10/MDG/2/Suppl.1  
G/SG/N/11/MDG/2/Suppl.3  
 
6 June 2023  
(23-3865) Page: 1/5 
Committee on Safeguards  Original: French  
 
  
NOTIFICATION UNDER ARTICLE S 7.2 AND  12.1(C) OF THE AGREEMENT ON SAFEGUARDS  
(EXTENSION OF THE EXISTING MEASURE)  
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 OF  
THE AGREEMENT ON SAFEGUARDS  
MADAGASCAR  
Blankets and Travelling Rugs  
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 Safegua rds 
is hereby notified of the outcome of the review investigation in respect of the extension of the 
safeguard measure on imports of blankets and travelling rugs 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 safeguard 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, the National 
Authority for Trade Remedies (ANMCC) conducted a comprehensive analysis of relevant indicators 
having a bearing on the economic situation of the domestic blanket and travelling rug industry, as 
well as i mport trends over the safeguard application period.  
a. Import trends  
 2019  2020  2021  2022  
Imports (kg)  841,000  679,000  838,000  1,584,000  
Imports (index base 100=2019)  100 81 100 188 
Imports/production (index base 100=2019)  100 88 75 153 
The safeguard measure reduced the volume of imports of blankets and travelling rugs by 19% in 
the first two years of application. In absolute terms, it went from 841 tonnes in 2019 to 679 tonnes 
in 2020. However, imports ticked up again in 2021 and, in 202 2, reached their highest level of the 
period under review (2019 -2022). This upward trend is likely to continue if the safeguard measure G/SG/N/10/MDG/2/Suppl.1 • G/SG/N/11/MDG/2/Suppl.3  
 
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  is withdrawn. Import trends in relative terms compared to domestic production followed the same 
direction as in absolute  terms. This confirms the need to extend the safeguard measure.  
b. Situation of the domestic industry  
When evaluating the economic situation of the domestic industry, import trends and other relevant 
data were taken into account. The ANMCC reviewed the data f or the period under consideration:  
 2019  2020  2021  2022  
Market share of imports  
(index base 100=2019)  100 97 99 113 
Market share of the domestic industry  
(index base 100=2019)  100 108 104 60 
Domestic production (index base 100=2019)  100 92 133 123 
Production capacity (index base 100=2019)  100 100 100 100 
Production capacity utilization rate (%)  18 17 24 22 
Production capacity utilization rate  
(index base 100=2019)  100 94 133 122 
Sales (index base 100=2019)  100 120 139 126 
Inventory volume (index base 100=2019)  100 69 84 102 
Financial results (index base 100=2019)  100 136 225 192 
Employment (index base 100=2019)  100 117 125 131 
Productivity (index base 100=2019)  100 78 107 94 
Imports lost a little market share over the course of the first three years of the  review  period. 
However, a significant increase was recorded in 2022. Conversely, the domestic industry had gained 
market share thanks to the adjustments it made between 2019 and 2021. Yet, with the sudden 
recovery in imports in 202 2, the domestic industry lost considerable market share.  
The volume of production of blankets and travelling rugs trended upward over the first three years 
of the  review  period. In 2022, there was a significant decline in production volume.  
Since the indus try's production capacity remained unchanged during the review period, the 
production capacity utilization rate followed the same trend as production volume.  
The sales of domestic blankets and travelling rugs industry recorded a marked improvement up to 
2021, before falling 13 index points in 2022.  
The trend in the industry's inventory volume reflects its difficulties in selling its product after having 
made considerable efforts on the production front.  
The application of the measure appears to be advantag eous to the industry given the positive 
financial performance between 2019 and 2021, but it is far from being significant or sufficient relative 
to turnover. Furthermore, given the decline seen in 2022 , its profitability  is fragile . 
In accordance with its adjustment plan, the domestic industry continued to increase its workforce 
throughout the review period. A rise of 31 index points was recorded between 2019 and 2022.  
Following the decline in production volume, the steps taken by industry with regard to th e workforce 
had a negative impact on its levels of productivity ; a decrease of 13 index points was seen in 2022 
compared to the previous year.  
The indicators discussed above demonstrate the effectiveness of the measure in force which led to 
an improvement in the domestic industry's performance as of 2019. However, that improvement 
was undermined by the uptick in imports as of 2021 Market share, production, sales, financial results 
and productivity fell considerably in 2022, coinciding with a sharp increase in imports. It is clear that 
not extending the measure would lead to the continued growth of imports injurious to the domestic 
industry.  G/SG/N/10/MDG/2/Suppl.1 • G/SG/N/11/MDG/2/Suppl.3  
 
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  1.2  Description of the product subject to the safeguard measure  
The products concerned are blankets and travelling rugs of all colours, dimensions and weights, 
generally of wool, animal hair, cotton or man -made fibres, with surfaces that are often brushed. 
They are classified under tariff headings 63011000  ; 63012000  ; 63013000  ; 63014000 and 
63019000 of Madagascar's customs t ariff. 
1.3  Description of the proposed measure  
The proposed measure takes the form of an additional duty of 30% of the c.i.f. value.  
1.4  Proposed date of introduction of the measure  
The proposed measure will enter into force on 3 June 2023.  
1.5  Expected duration of th e 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  30% 
2024 29% 
2025 28% 
2026 27% 
1 January 2027 -2 June 2027 26% 
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 m easure, 
Members are encouraged to provide the following information:  
a. The major exporting Members of imports of the product involved.  
The major exporting country of blankets and travelling rugs to Madagascar is China.  
b. If there are any exporting Members to w hich 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  
Following the application of the safeguard measure, the economic indicators of the domestic industry 
improved significantly as of 20 19. However, that improvement was undermined by the uptick in 
imports as of 2021 Market share, production, sales, financial results and productivity fell 
considerably in 2022, coinciding with a sharp increase in imports. It is clear that not extending the 
measure would lead to the continued growth of imports injurious to the domestic industry. This is 
why the safeguard measure continues to be necessary.  G/SG/N/10/MDG/2/Suppl.1 • G/SG/N/11/MDG/2/Suppl.3  
 
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  b. Evidence that the industry concerned is adjusting  
The domestic industry has implemented an adjustment pla n to increase the volume and quality of 
its products, and to improve its marketing strategy through various adjustment measures concerning 
technology, employment, cost control and distribution channels.  
The improvement seen in most of the economic indicato rs 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 do cument that notified the initial application of the measure  
The initial application of the measure was notified in WTO document: G/SG/N/8/MDG/2 - 
G/SG/N/10/MDG/2 - G/SG/N/11/MDG/2/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 blankets and travelling rugs 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/1402 - 
G/SG/N/13/MDG/2.  
f. Members are encouraged to attach, in an electronic form, publicly a vailable 
document(s) containing the relevant decision(s) made by the competent authority.  
The official documents regarding the investigation and the final decision can be found at:  
www.anmcc.mg   
2  NOTIFICATION UNDER ARTIC LE 9.1, FOOTNOTE 2, OF THE AGREEMENT ON 
SAFEGUARDS  
2.1  Description of the product subject to the safeguard measure  
The products concerned are blankets and travelling rugs of all colours, dimensions and weights, 
generally of wool, animal hair, cotton or man -made fibres, with surfaces that are often brushed. 
They are classified under tariff headings 63011000  ; 63012000  ; 63013000  ; 63014000 and 
63019000 of Madagascar's customs tariff.  
2.2  Description of the proposed measure  
The proposed measure takes the form of an additional duty of 30% 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; Beli ze; 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 Cong o; 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; Kenya; Kuwait;  Kyrgyz Republic; 
Lao People's  Democratic Republic; Lesotho; Liberia; Malawi; Malaysia; Maldives; Mali; Mauritania; 
Mauritius; Mexico; Moldova; Mongolia; Montenegro; Morocco; Mozambique; Myanmar; Namibia; G/SG/N/10/MDG/2/Suppl.1 • G/SG/N/11/MDG/2/Suppl.3  
 
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  Nepal; Nicaragua; Niger; North Macedonia; Oman; Pak istan; 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; T ajikistan; Tanzania; Thailand; Togo; Tonga; Trinidad and 
Tobago; Tunisia; Türkiye; 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 Safeguards, 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 Directeur 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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