Madagascar

Flour

Supplement

The following communication, dated and received on 6 October 2025, is being circulated at the request of the delegation of Madagascar.

_______________

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 flour.

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 flour classified under heading 11010000 of the Madagascan customs tariff nomenclature.

The application of this safeguard measure was notified to the WTO in document _G/SG/N/8/MDG/10 - _G/SG/N/10/MDG/10 - _G/SG/N/11/MDG/10/Suppl.1.

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

During the first two years of application of the measure in 2023 and 2024, imports of flour continued to increase. In 2024, imports shot up by 53 index points compared with the previous year. This demonstrates that the existing measure has had no effect on the trend in imports posing a threat to the domestic industry.

ii.  Import trends in relative terms

Relative to domestic production, imports continued their marked upward trend during the two years of application of the measure. Imports surged by 50 index points in 2024. This trend remains a serious threat to the domestic industry.

(b) Indicators

i.   Domestic consumption

During the two years of application, domestic consumption increased substantially. Consumption rose by 24 index points in 2024. However, due to the resumption of imports, the increase in domestic consumption was not of benefit to the domestic industry.

ii.  Market share taken by imports

In 2024, the market shares of imports and the domestic industry moved in opposite directions. Imports retained a majority market share in 2024 with growth of 25 index points. A decrease of 20 index points was recorded for the domestic industry compared with the previous year.

iii. Production

Although domestic production rose slightly during the second year of the measure, growth remains modest. The increase of only 2 index points in the volume of locally produced flour in 2024 compared with the previous year demonstrates that the domestic industry failed to benefit fully from the application of the measure.

iv. Sales

Despite a sharp increase in domestic consumption, the domestic industry's sales volume remained stable in 2024 compared with 2023. This highlights the persistent difficulties of local producers in capturing growth in demand, which mainly benefits imports.

v.  Production capacity utilization rate

Even after two years of the measure, domestic production capacity has remained stable. The increase of only 2 points in capacity utilization in 2024 is a very modest improvement, as the rate remained well below 50% throughout the period.

vi. Employment

The increase in domestic production in 2024 was accompanied by an uptick of 1 index point in the workforce.

vii.        Productivity

The modest growth in production in 2024 resulted in an equally slight improvement in productivity, which increased by only 1 index point compared with the previous year.

viii.       Inventory

The domestic industry faced considerable difficulties in selling its products. Stagnant sales, combined with increasing production, resulted in significant inventory growth. This was compounded by the resumption of imports in 2024, leading to an increase of 20 index points in inventories compared with 2023. Accordingly, inventories remained abnormally high during the two years of application of the measure, which had a negative impact on the state of the domestic industry.

ix. Profitability

Domestic industry profitability improved slightly between 2023 and 2024. Profits rose by 4 index points in 2024, but growth still falls short. As the profit margin was very small in 2023, this increase does not offset the injury suffered.

(c)  Conclusion of mid-term review

Analysis of the domestic industry's performance indicators shows that its situation remained largely unchanged during the two years of application of the measure. In comparison, imports increased significantly, retaining a dominant market share. The production capacity utilization rate remains well below half. Moreover, abnormally high inventories, as well as the growth thereof, continue to hamper efforts to improve the state of the domestic industry.

In short, the safeguard measure has certainly improved the state of the industry and is essential given the dominance of imports, which account for more than half the market share of flour. Consequently, the measure needs to remain in place if the domestic industry is to continue adjusting and regain lasting stability.

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 flour 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 to imports of flour 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; 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; Nepal; North Macedonia; 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; Togo; Tonga; Trinidad and Tobago; Tunisia; 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

101 - ANTANANARIVO – MADAGASCAR

Tel.: (+261) 34 05 441 41

Website: ANMCC

Email: dg.anmcc@gmail.com; dg@anmcc.mg

__________