INTRODUCTION

Background

On 5 January 1999, Mexico requested consultations with Guatemala under Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”) and Article 17.3 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (“AD Agreement”) regarding the definitive anti-dumping measure imposed by Guatemala on imports of Portland cement from Cooperativa Manufacturera de Cemento Portland la Cruz Azul, SCL, of Mexico (“Cruz Azul”), as well as the actions that preceded it (WT/DS156/1).

Mexico and Guatemala held one-day consultations on 23 February 1999, but failed to reach a mutually satisfactory solution.

Establishment and Composition of the Panel

On 26 July 1999, pursuant to Article 17.4 of the AD Agreement and Article 6.2 of the DSU, Mexico requested the establishment of a panel to examine the consistency of Guatemala's definitive anti-dumping measure on imports of Portland cement from Mexico, as well as the actions that preceded it, with Guatemala's obligations under the Agreement Establishing the World Trade Organization (“WTO Agreement”), in particular those contained in the AD Agreement (WT/DS156/2 and WT/DS156/2/Corr.1).

At the meeting of the Dispute Settlement Body (“DSB”) on 26 July 1999, Guatemala stated that it could not join the consensus to establish a panel until certain domestic procedures concerning the investigation had been completed. The DSB agreed to revert to this matter at a later date.

At its meeting on 22 September 1999, the DSB established a panel in accordance with Article 6 of the DSU with standard terms of reference. The terms of reference were:

Ecuador, El Salvador, the European Communities, Honduras and the United States reserved their rights to participate in the Panel proceedings as third parties.

On 12 October 1999, Mexico requested the Director-General to determine the composition of the Panel, pursuant to Article 8.7 of the DSU.