Madagascar is one of the few African countries that has reported their monthly 2020 data thus far. Madagascar is a member of the World Trade Organization (WTO) and two regional economic communities; the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC), and also a member of the Indian Ocean Commission (IOC). Madagascar is a member of the COMESA Free Trade Area and the SADC Free Trade Area. Imports from Eritrea and Ethiopia are granted preferential access in accordance with the tariff phase-down achieved under COMESA – imports from Eritrea are granted an 80 per cent reduction in the Most Favoured Nation (MFN) applied tariff, while imports from Ethiopia are only granted a 10 per cent reduction in the MFN applied tariff. Madagascar, Comoros, Mauritius, Seychelles, Zambia and Zimbabwe are concluded an pdf Interim Economic Partnership Agreement (8.59 MB)  with the European Union at the end of 2007, and are applying the agreement provisionally since May 2012.

This blog compares Madagascar’s trade in the first seven months of 2019 and 2020 i.e. January to July 2019 and January to July 2020.

Imports

Between January and July 2019, Madagascar’s total imports were valued at US$2.3 billion. Imports from Africa were worth US$270 million (12% of Madagascar’s total imports). Between January and July 2020, Madagascar’s imports amounted to US$1.9 billion. Imports from Africa were valued at US$212 million (11% of Madagascar’s total imports). Between the two periods, Madagascar's total imports decreased by 18 per cent, while imports from the rest of Africa increased by 21%.

Top products imported by Madagascar during the two periods were medium oils, rice, Kashmir goats' hair and medicaments. Light oils were among the top 5 imported products between January and July 2019, but not between January and July 2020 – replaced by crude palm oil (see Table 1).

Medium oils, rice, medicaments and light oils are imported duty-free into Madagascar. Crude palm oil faces a 10 per cent MFN applied tariff duty, or 3 per cent preferential tariff for the European Union countries. Crude oil from Eswatini, IOC and COMESA FTA countries are imported duty-free into Madagascar. Crude oil from Eritrea and Ethiopia are levied COMESA preferential tariffs of 2 per cent and 9 per cent respectively.

Imports of Kashmir goats’ hair are levied a 5 per cent MFN applied tariff duty. Kashmir goats’ hair from the EU, IOC, Eswatini and COMESA FTA countries are imported duty-free into Madagascar. Kashmir goats’ hair from Eritrea and Ethiopia are levied COMESA preferential tariffs of 1 per cent and 4.5 per cent, respectively.

Table 1: Imports

Source: ITC TradeMap (2020) and tralac calculations

The top 5 source markets for Madagascar between the two periods were China, India, United Arab Emirates, France and South Africa.

• Top imports from China included Kashmir goats’ hair, rice and dyed fabrics

• Top imports from India were medium oils, rice and medicaments,

• Top imports from UAE included medium oils, light oils and sulphur

• Top imports from France included unused postage, medicaments and animal feeding preparations

• Imports from South Africa were bituminous coal, goods vehicles and medium oils

Exports

Between January and July 2019, Madagascar’s exports to the world were worth US$1.5 billion. Exports to Africa were worth US$105.8 million (7% of Madagascar’s total exports). Between January and July 2020, Madagascar’s exports to the world amounted to US$1.2 billion. The value of exports to Africa was US$66.8 million (6% of Madagascar’s total exports). Between the two periods, Madagascar's exports to the world and Africa declined by 19% and 37%, respectively.

Top products exported by Madagascar between these two periods were vanilla, nickel, titanium ores and frozen shrimps and prawns. Cobalt was among the top exported products in 2019, but not in 2020 – replaced by cloves (see Table 2). Top products exported by Madagascar to Africa were t-shirts, vanilla, men’s clothes and essential oils.

Table 2: Exports

Source: ITC TradeMap (2020) and tralac calculations

Top destination markets for products exported by Madagascar during the two periods are the United States (US), France, China and Germany. Madagascar mainly exports vanilla, titanium ores and men’s clothes to the US. Top products exported to France by Madagascar are vanilla, frozen shrimps and prawns, and unshelled beans. Top exports to China are nickel, zirconium ores and frozen shrimps and prawns. These products are imported duty-free into China. Top products exported by Madagascar to Germany included vanilla, Kashmir hair jerseys and textile jerseys. These products exported by Madagascar are imported duty-free into their respective destination markets.