INTRODUCTION

On 15 October 1996, 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 (“ADP Agreement”) regarding the anti-dumping investigation carried out by Guatemala concerning imports of portland cement from Cooperativa Manufacturera de Cemento Portland la Cruz Azul, SCL, of Mexico (“Cruz Azul”) (WT/DS60/1). Mexico's request for consultations preceded Guatemala's final determination of dumping and consequent injury and the imposition of the definitive anti-dumping duty.

Mexico and Guatemala held consultations on 9 January 1997, but failed to reach a mutually satisfactory solution.

On 4 February 1997, pursuant to Article 17.4 of the ADP Agreement, Mexico requested the establishment of a panel to examine the consistency of Guatemala's anti-dumping investigation into imports of portland cement from Mexico with Guatemala's obligations under the World Trade Organization (“WTO”), in particular those contained in the ADP Agreement (WT/DS60/2).

At the meeting of the Dispute Settlement Body (“DSB”) on 25 February 1997, 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 20 March 1997, the DSB established a panel in accordance with Article 6 of the DSU with standard terms of reference. The terms of reference were:

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

On 21 April 1997, Mexico requested the Director-General to determine the composition of the Panel, pursuant to Article 8.7 of the DSU. On 1 May 1997, the Director-General composed the following Panel: