Madagascar

Pasta

Supplement

The following communication, dated and received on 6 October 2025, 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.

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 classified under the following headings of the Madagascan customs tariff nomenclature: 19021100, 19021900, 19022000 and 19023000.

The application of this safeguard measure was notified to the WTO in document _G/SG/N/10/MDG/4/Suppl.3-_G/SG/N/11/MDG/4/Suppl.4.

2._        Provide the dates of initiation and conclusion of the review

The review investigation was initiated on 13 March 2025.

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

There was a significant increase of 21 index points between 2023 and 2024. This trend continued in 2025, from 1 January to 14 August 2025. Imports of pasta have increased by 13 index points compared with the volume imported in 2023, and have already almost reached the level recorded for the whole of 2024.

ii.  Import trends in relative terms

In relation to domestic production, there was a slight decrease, in relative terms, in imports of pasta in 2024. This decrease amounted to only 6 index points throughout the period of the extension of the measure.

(b) Indicators

i.   Domestic consumption

There was a notable increase of 28 index points in the domestic consumption of pasta in 2024 compared with 2023. This should have aided the restructuring of the domestic industry if domestic demand had not been further absorbed by imports.

ii.  Market share taken by imports

In 2024, there was a slight decrease of 6 index points in the market share held by imports compared with the previous year. Despite this, the market share of the domestic industry gained only 1 index point, reflecting limited growth.

iii. Production

The volume of pasta produced by the domestic industry increased by 29 index points during the first two years of the extension of the measure.

iv. Sales

During the first two years of the extension of the measure, the domestic industry's sales volume grew. In 2024, the sales volume was up 29 index points compared with the previous year.

v.  Production capacity utilization rate

Through investments in new equipment, the production capacity of the domestic industry rose by 21 index points. In the second year of the extension of the measure, a slight increase of 7 index points was recorded. The domestic industry has been unable to exploit its production capacity fully.

vi. Employment

The domestic industry's workforce increased in 2024. The number of domestic industry employees rose by 33 index points. However, this growth is not commensurate with the increase in production volume.

vii.        Productivity

Productivity in the domestic industry remained largely stable during the first two years of the extension. The trend observed indicates that production growth was less pronounced than workforce growth, resulting in a slight decline of 2 index points in productivity.

viii.       Inventory

In 2024, inventories increased by 8 index points, reflecting the domestic industry's ongoing difficulty in selling its product. This build-up creates additional costs, adversely affecting profitability.

ix. Profitability

The domestic industry saw an increase in profits in 2024 with the extension of the safeguard measure concerning imports of pasta.

(c)  Conclusion of mid-term review

During the first two years of the extension of the measure, most of the domestic industry's performance indicators improved, particularly in respect of production volume, sales, production capacity, market share and profitability. However, productivity fell, and inventories continued to grow. Moreover, an uptick in imports has been observed since the second year of the extension and this trend appears to be continuing in 2025.

In short, the extension of the safeguard measure has enabled the domestic industry to adjust. At this pace, the measure could further improve the industry's performance. Accordingly, it is essential that the measure remain in place, as the uptick in imports poses a new threat to the domestic industry.

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 timetable for progressive liberalization.

The pace of liberalization 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; 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; El Salvador; Eswatini; Fiji; Gabon; 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; Maldives; Mali; Marshall Islands; Mauritania; Mexico; Moldova; Mongolia; Montenegro; Morocco; Mozambique; Myanmar; Namibia; Nepal; Nicaragua; Niger; Nigeria; North Macedonia; 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; Togo; Tonga; Trinidad and Tobago; Türkiye; 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

Bâtiment Maison des Produits 67 Ha 101 - ANTANANARIVO - MADAGASCAR

Tel.: (+261) 34 05 441 41

Website: www.anmcc.mg

E-mail: dg.anmcc@gmail.com; dg@anmcc.mg

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