Short title: Guatemala — Cement I
Complainant: Mexico
Respondent: Guatemala
Third Parties: Canada; El Salvador; Honduras; United States
Request for Consultations received: 17 October 1996
Panel Report circulated: 19 June 1998
Appellate Body Report circulated: 2 November 1998
 
The summary below was up-to-date at 5 January 2007        
 
Appellate Body and Panel Reports Adopted
 
Complaint by Mexico.
 
On 15 October 1996, Mexico requested consultations with Guatemala in respect of an anti-dumping investigation commenced by Guatemala with regard to imports of portland cement from Mexico. Mexico alleged that this investigation was in violation of Guatemala’s obligations under Articles 2, 3, 5 and 7.1 of the Anti-Dumping Agreement.
 
On 4 February 1997, Mexico requested the establishment of a panel. At its meeting on 25 February 1997, the DSB deferred the establishment of a panel. Further to a second request to establish a panel by Mexico, the DSB established a panel at its meeting on 20 March 1997. The US, Canada, Honduras and El Salvador reserved their third-party rights. On 21 April 1997, Mexico requested the Director-General to determine the composition of the Panel. On 1 May 1997, the Panel was composed. The report of the Panel was circulated to Members on 19 June 1998. The Panel found that Guatemala had failed to comply with the requirements of Article 5.3 of the Anti-Dumping Agreement by initiating the investigation on the basis of evidence of dumping, injury and casual link that was not “sufficient” as a justification for initiation.
 
On 4 August 1998, Guatemala notified its intention to appeal certain issues of law and legal interpretations developed by the Panel. The report of the Appellate Body was circulated to Members on 2 November 1998. The Appellate Body reversed the Panel’s finding that the dispute was properly before the Panel, on the ground that Mexico did not comply with Article 6.2 of the DSU in its request for a panel since it did not identify the measure it was complaining against. Having found that the dispute was not properly before the Panel, the Appellate Body could not make any conclusions on the findings by the Panel on the substantive issues that were also the subject of the appeal. The Appellate Body stressed that its decision was without prejudice to Mexico’s right to pursue new dispute settlement proceedings on this matter.
 
At the DSB meeting on 25 November 1998, the DSB adopted the Appellate Body Report and the Panel Report, as reversed by the Appellate Body Report.