The government of Madagascar has notified the WTO’s Committee on Safeguards that it would initiate a safeguard investigation on tomato products stating surges in importation of tomato derivatives at dumped prices have caused serious injury to their domestic industry.
Based on its notification on Dec. 30, 2024 to the multilateral trade body, Madagascar’s investigation started the following day, Dec. 31, 2024.
The products in question are tomato derivatives falling under the following customs tariff codes: 20021000, 20029000, 20095000, and 21032000 of Madagascar’s customs tariff. These codes are provided for information purposes only and may be subject to modification.
Madagascar submitted data as evidence indicating the existence of increased imports, serious injury suffered by the domestic industry producing similar and directly competitive products, and a causal link justifying the initiation of the investigation ex officio.
The investigation was initiated on the initiative of the investigating authority itself after an evaluation of evidence related to the importation of similar or directly competing products in such increased quantities, due to unforeseen developments, that they have caused or threaten to cause serious injury to the domestic industry, with a causal link.
The currently available data show a significant increase in imports by approximately 106% over the last three years, sold on the domestic market at prices that newly established domestic industries cannot match. Furthermore, domestic industries are struggling to position themselves in the market, as it is heavily saturated with imported products. This has slowed production rates and weakened their performance. The impact of this increase in imports on the profitability of the domestic industry is significant, and no other parameter can be considered as the cause of this serious injury or threat thereof.
Regarding unforeseen developments, ANMCC, the Madagascar investigating authority, noted the rapid development of the global market for tomato derivatives, driven by the responses of developed countries such as China in terms of production capacity, to meet the rising global demand for tomato derivatives resulting from changing consumer habits and new market behaviors.
A safeguard investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry.
During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties.
A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.
