On August 5, 2024, the China Trade Relief Information Network issued an announcement stating that on August 2, 2024, the World Trade Organization (WTO) Safeguard Committee issued a safeguard notification submitted by the Madagascar delegation. Madagascar has made a final ruling on the safeguard measures on imported diapers and sanitary napkins, and recommended that a four-year safeguard tax be imposed on the imported products involved, with the tax rate decreasing year by year, as follows:
2024-2025:27%
2025-2026: 26%
2026-2027:25%
2027-2028: 24%
The products involved include sanitary napkins, tampons, diapers, etc., involving products under Madagascar's tariff number 96190000. On October 25,
2023, Madagascar launched a safeguard investigation on imported diapers and sanitary napkins. The main exporters of the products involved include Egypt, Turkey, China and Belgium.
Safeguard measures are temporary trade relief measures aimed at responding to serious damage or threats of serious damage to domestic industries caused by a surge in imports. The design of a tax rate that decreases year by year shows that the Madagascar government hopes to give domestic producers a certain amount of time to adapt to market competition while gradually reducing external dependence.
For Chinese exporters, this move means facing higher import costs in the short term. Exporters may need to reassess their competitiveness in the Madagascar market and consider adjusting their pricing strategies or looking for alternative markets. In addition, this also reminds Chinese exporters to pay attention to policy dynamics in the target market so that they can respond in a timely manner and reduce potential negative impacts.
In the next few years, as the tax rate is gradually reduced, it is expected that the competitiveness of Chinese companies in this market will gradually recover. During this period, companies should actively seek to communicate with local governments, strive for a favorable trade environment, and explore other possible cooperation opportunities.