Espina vs.

Zamora

The Supreme Court recently upheld the constitutionality of RA 8762 (Retail Trade Liberalization Act of 2000), which expressly repealed the law prohibiting foreign nationals from engaging in retail trade (RA 1180). RA 8762 also allows natural-born Filipino citizens, who had lost their citizenship and now reside in the Philippines, to engage in the retail trade business with the same rights as Filipino citizens. In a unanimous 11-page decision penned by Justice Roberto A. Abad, the Court En Banc dismissed for lack of merit the petition filed a decade ago assailing RA 8762. It found no showing that the law has contravened any constitutional mandate and that it would eventually lead to alien control of the retail trade business. The Court noted that while the Constitution mandates a bias in favor Filipino goods, services, labor, and local enterprises, it also recognizes the need for business exchange with the rest of the world on the basis of equality and reciprocity and limits protection of Filipino enterprises only against foreign competition and trade practices that are unfair. The Court also pointed out that Congress has the discretion under Article XIII, sec. 10 of the Constitution to reserve to Filipinos certain areas of investment upon recommendation of the National Economic Development Authority (NEDA) and when the national interest requires; and that in this case Congress has decided, without opposition from NEDA, to open certain areas of the retail trade business to foreign investments. The Court also found that RA 8762 has provided for strict safeguards on foreign participation in retail trade. (GR No. 143855, Espina v. Zamora, September 21, 2010)