EN BANC

[G.R. No. 118295. May 2, 1997]

WIGBERTO E. TAADA and ANNA DOMINIQUE O!ETENG, a" #$#%$&" o' ()$ *)+,+--+n$ !$na($ and a" (a.-ay$&"/ GREGORIO ANDO0ANA and 1O2ER ARRO3O a" #$#%$&" o' ()$ 4o5"$ o' R$-&$"$n(a(+6$" and a" (a.-ay$&"/ NI ANOR *. *ER0A! and 4ORA IO R. MORA0E!, %o() a" (a.-ay$&"/ I7I0 0IBERTIE! UNION, NATIONA0 E ONOMI *ROTE TIONI!M A!!O IATION, ENTER 8OR A0TERNATI7E DE7E0O*MENT INITIATI7E!, 0I2A!92A3ANG 2AUN0ARAN 8OUNDATION, IN ., *4I0I**INE RURA0 RE ON!TRU TION MO7EMENT, DEMO2RATI2ONG 2I0U!AN NG MAGBUBU2ID NG *I0I*INA!, IN ., and *4I0I**INE *EA!ANT IN!TITUTE, +n &$-&$"$n(a(+on o' 6a&+o5" (a.-ay$&" and a" non9 :o6$&n#$n(a, o&:an+;a(+on", petitioners, vs. EDGARDO ANGARA, A0BERTO ROMU0O, 0ETI IA RAMO!9 !4A4ANI, 4E4ER!ON A07ARE<, AGA*ITO AQUINO, RODO08O BIA<ON, NE*TA0I GON<A0E!, ERNE!TO 4ERRERA, 1O!E 0INA, G0ORIA

MA A*AGA09ARRO3O, OR0ANDO MER ADO, B0A! O*0E, 1O4N O!MEA, !ANTANINA RA!U0, RAMON RE7I00A, RAU0 RO O, 8RAN I! O TATAD and 8REDDIE WEBB, +n ()$+& &$"-$=(+6$ =a-a=+(+$" a" #$#%$&" o' ()$ *)+,+--+n$ !$na($ >)o =on=5&&$d +n ()$ &a(+'+=a(+on %y ()$ *&$"+d$n( o' ()$ *)+,+--+n$" o' ()$ A:&$$#$n( E"(a%,+")+n: ()$ Wo&,d T&ad$ O&:an+;a(+on/ !A07ADOR ENRIQUE<, +n )+" =a-a=+(y a" !$=&$(a&y o' B5d:$( and Mana:$#$n(/ ARIDAD 7A0DE4UE!A, +n )$& =a-a=+(y a" Na(+ona, T&$a"5&$&/ RI<A0INO NA7ARRO, +n )+" =a-a=+(y a" !$=&$(a&y o' T&ad$ and Ind5"(&y/ ROBERTO !EBA!TIAN, +n )+" =a-a=+(y a" !$=&$(a&y o' A:&+=5,(5&$/ ROBERTO DE O AM*O, +n )+" =a-a=+(y a" !$=&$(a&y o' 8+nan=$/ ROBERTO ROMU0O, +n )+" =a-a=+(y a" !$=&$(a&y o' 8o&$+:n A''a+&"/ and TEO8I!TO T. GUINGONA, +n )+" =a-a=+(y a" E.$=5(+6$ !$=&$(a&y, respondents. DE
*ANGANIBAN, J.?

I!ION

The emergence on January 1, 1995 of the World Trade Organization, a etted y the mem er!hi" thereto of the #a!t ma$ority of countrie! ha! re#olutionized international u!ine!! and economic relation! among!t !tate!% &t ha! irre#er!i ly "ro"elled the 'orld to'ard!

trade li eralization and economic glo alization% (i eralization, glo alization, deregulation and "ri#atization, the third)millennium uzz 'ord!, are u!hering in a ne' orderle!! 'orld of u!ine!! y !'ee"ing a'ay a! mere hi!torical relic! the heretofore traditional mode! of "romoting and "rotecting national economie! li*e tariff!, e+"ort !u !idie!, im"ort ,uota!, ,uantitati#e re!triction!, ta+ e+em"tion! and currency control!% -inding mar*et niche! and ecoming the e!t in !"ecific indu!trie! in a mar*et)dri#en and e+"ort)oriented glo al !cenario are re"lacing age)old . eggar)thy)neigh or/ "olicie! that unilaterally "rotect 'ea* and inefficient dome!tic "roducer! of good! and !er#ice!% &n the 'ord! of 0eter 1ruc*er, the 'ell)*no'n management guru, .&ncrea!ed "artici"ation in the 'orld economy ha! ecome the *ey to dome!tic economic gro'th and "ro!"erity%/ B&+$' 4+"(o&+=a, Ba=@:&o5nd To ha!ten 'orld'ide reco#ery from the de#a!tation 'rought y the 2econd World War, "lan! for the e!ta li!hment of three multilateral in!titution! )) in!"ired y that grand "olitical ody, the 3nited Nation! )) 'ere di!cu!!ed at 1um arton Oa*! and Bretton Wood!% The fir!t 'a! the World Ban* 4WB5 'hich 'a! to addre!! the reha ilitation and recon!truction of 'ar)ra#aged and later de#elo"ing countrie!6 the !econd, the &nternational 7onetary -und 4&7-5 'hich 'a! to deal 'ith currency "ro lem!6 and the third, the &nternational Trade Organization 4&TO5, 'hich 'a! to fo!ter order and "redicta ility in 'orld trade and to minimize unilateral "rotectioni!t "olicie! that in#ite challenge, e#en retaliation, from other !tate!% 8o'e#er, for a #ariety of rea!on!, including it! non)ratification y the 3nited 2tate!, the &TO, unli*e the &7- and WB, ne#er too* off% What remained 'a! only 9ATT )) the 9eneral Agreement on Tariff! and Trade% 9ATT 'a! a collection of treatie! go#erning

acce!! to the economie! of treaty adherent! 'ith no in!titutionalized ody admini!tering the agreement! or de"enda le !y!tem of di!"ute !ettlement% After half a century and !e#eral dizzying round! of negotiation!, "rinci"ally the :ennedy ;ound, the To*yo ;ound and the 3ruguay ;ound, the 'orld finally ga#e irth to that admini!tering ody )) the World Trade Organization )) 'ith the !igning of the .-inal Act/ in 7arra*e!h, 7orocco and the ratification of the WTO Agreement y it! mem er!%<1= (i*e many other de#elo"ing countrie!, the 0hili""ine! $oined WTO a! a founding mem er 'ith the goal, a! articulated y 0re!ident -idel >% ;amo! in t'o letter! to the 2enate 4infra5, of im"ro#ing .0hili""ine acce!! to foreign mar*et!, e!"ecially it! ma$or trading "artner!, through the reduction of tariff! on it! e+"ort!, "articularly agricultural and indu!trial "roduct!%/ The 0re!ident al!o !a' in the WTO the o"ening of .ne' o""ortunitie! for the !er#ice! !ector + + +, 4the reduction of5 co!t! and uncertainty a!!ociated 'ith e+"orting + + +, and 4the attraction of5 more in#e!tment! into the country%/ Although the Chief E+ecuti#e did not e+"re!!ly mention it in hi! letter, the 0hili""ine! ) ) and thi! i! of !"ecial intere!t to the legal "rofe!!ion ) ) 'ill enefit from the WTO !y!tem of di!"ute !ettlement y $udicial ad$udication through the inde"endent WTO !ettlement odie! called 415 1i!"ute 2ettlement 0anel! and 4?5 A""ellate Tri unal% 8eretofore, trade di!"ute! 'ere !ettled mainly through negotiation! 'here !olution! 'ere arri#ed at fre,uently on the a!i! of relati#e argaining !trength!, and 'here naturally, 'ea* and underde#elo"ed countrie! 'ere at a di!ad#antage% T)$ *$(+(+on +n B&+$' Arguing mainly 415 that the WTO re,uire! the

0hili""ine! .to "lace national! and "roduct! of mem er) countrie! on the !ame footing a! -ili"ino! and local "roduct!/ and 4?5 that the WTO .intrude!, limit! and@or im"air!/ the con!titutional "o'er! of oth Congre!! and the 2u"reme Court, the in!tant "etition efore thi! Court a!!ail! the WTO Agreement for #iolating the mandate of the 19AB Con!titution to .de#elo" a !elf)reliant and inde"endent national economy effecti#ely controlled y -ili"ino! + + + 4to5 gi#e "reference to ,ualified -ili"ino! 4and to5 "romote the "referential u!e of -ili"ino la or, dome!tic material! and locally "roduced good!%/ 2im"ly !tated, doe! the 0hili""ine Con!titution "rohi it 0hili""ine "artici"ation in 'orld'ide trade li eralization and economic glo alizationC 1oe! it "re!cri e 0hili""ine integration into a glo al economy that i! li eralized, deregulated and "ri#atizedC The!e are the main ,ue!tion! rai!ed in thi! "etition for certiorari, "rohi ition and mandamus under ;ule D5 of the ;ule! of Court "raying 415 for the nullification, on con!titutional ground!, of the concurrence of the 0hili""ine 2enate in the ratification y the 0re!ident of the 0hili""ine! of the Agreement E!ta li!hing the World Trade Organization 4WTO Agreement, for re#ity5 and 4?5 for the "rohi ition of it! im"lementation and enforcement through the relea!e and utilization of "u lic fund!, the a!!ignment of "u lic official! and em"loyee!, a! 'ell a! the u!e of go#ernment "ro"ertie! and re!ource! y re!"ondent)head! of #ariou! e+ecuti#e office! concerned there'ith% Thi! concurrence i! em odied in 2enate ;e!olution No% 9B, dated 1ecem er 1E, 199E% T)$ 8a=(" On A"ril 15, 199E, ;e!"ondent ;izalino Na#arro, then 2ecretary of the 1e"artment of Trade and &ndu!try 42ecretary Na#arro, for re#ity5, re"re!enting the 9o#ernment of the ;e"u lic of the 0hili""ine!, !igned in

7arra*e!h, 7orocco, the -inal Act Em odying the ;e!ult! of the 3ruguay ;ound of 7ultilateral Negotiation! 4-inal Act, for re#ity5% By !igning the -inal Act,<?= 2ecretary Na#arro on ehalf of the ;e"u lic of the 0hili""ine!, agreedF (a) to submit, as appropriate, the WTO Agreement for the consideration of their respective competent authorities, with a view to seeking approval of the Agreement in accordance with their procedures; and (b) to adopt the Ministerial Declarations and Decisions. On Augu!t 1?, 199E, the mem er! of the 0hili""ine 2enate recei#ed a letter dated Augu!t 11, 199E from the 0re!ident of the 0hili""ine!,<G= !tating among other! that .the 3ruguay ;ound -inal Act i! here y !u mitted to the 2enate for it! concurrence "ur!uant to 2ection ?1, Article >&& of the Con!titution%/ On Augu!t 1G, 199E, the mem er! of the 0hili""ine 2enate recei#ed another letter from the 0re!ident of the 0hili""ine!<E= li*e'i!e dated Augu!t 11, 199E, 'hich !tated among other! that .the 3ruguay ;ound -inal Act, the Agreement E!ta li!hing the World Trade Organization, the 7ini!terial 1eclaration! and 1eci!ion!, and the 3nder!tanding on Commitment! in -inancial 2er#ice! are here y !u mitted to the 2enate for it! concurrence "ur!uant to 2ection ?1, Article >&& of the Con!titution%/ On 1ecem er 9, 199E, the 0re!ident of the 0hili""ine! certified the nece!!ity of the immediate ado"tion of 0%2% 1HAG, a re!olution entitled .Concurring in the ;atification of the Agreement E!ta li!hing the World Trade Organization%/<5= On 1ecem er 1E, 199E, the 0hili""ine 2enate ado"ted ;e!olution No% 9B 'hich .;e!ol#ed, a! it i! here y re!ol#ed, that the 2enate concur, a! it here y

concur!, in the ratification y the 0re!ident of the 0hili""ine! of the Agreement E!ta li!hing the World Trade Organization%/<D= The te+t of the WTO Agreement i! 'ritten on "age! 1GB et seq. of >olume & of the GD)#olume Uruguay Round of Multilateral Trade Negotiations and include! #ariou! agreement! and a!!ociated legal in!trument! 4identified in the !aid Agreement a! Anne+e! 1, ? and G thereto and collecti#ely referred to a! 7ultilateral Trade Agreement!, for re#ity5 a! follo'!F ANNEX 1 Annex 1A: Multilateral Agreement on Trade in Goods General Agreement on Tariffs and Trade 1994 Agreement on Agriculture Agreement on the Application of Sanitary and Phytosanitary Measures Agreement on Textiles and Clothing Agreement on Technical Barriers to Trade Agreement on Trade-Related Investment Measures Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 Agreement on Implementation of Article VII of the General on Tariffs and Trade 1994

Agreement on Pre-Shipment Inspection Agreement on Rules of Origin Agreement on Imports Licensing Procedures Agreement on Subsidies and Coordinating Measures Agreement on Safeguards Annex 1B: Annexes General Agreement on Trade in Services and

Annex 1C: Agreement on Trade-Related Aspects of Intellectual Property Rights ANNEX 2 Understanding on Rules and Procedures Governing the Settlement of Disputes ANNEX 3 Trade Policy Review Mechanism On 1ecem er 1D, 199E, the 0re!ident of the 0hili""ine! !igned<B= the &n!trument of ;atification, declaringF NOW THEREFORE, be it known that I, FIDEL V. RAMOS, President of the Republic of the Philippines, after having seen and considered the aforementioned Agreement Establishing the World Trade Organization and the agreements and associated legal instruments included in Annexes one (1), two (2) and three (3) of that Agreement which are integral parts thereof, signed at Marrakesh, Morocco on 15 April 1994, do hereby ratify and confirm the same and every Article and Clause thereof.

To em"ha!ize, the WTO Agreement ratified y the 0re!ident of the 0hili""ine! i! com"o!ed of the Agreement 0ro"er and .the a!!ociated legal in!trument! included in Anne+e! one 415, t'o 4?5 and three 4G5 of that Agreement 'hich are integral "art! thereof%/ On the other hand, the -inal Act !igned y 2ecretary Na#arro em odie! not only the WTO Agreement 4and it! integral anne+e! aforementioned5 ut al!o 415 the 7ini!terial 1eclaration! and 1eci!ion! and 4?5 the 3nder!tanding on Commitment! in -inancial 2er#ice!% &n hi! 7emorandum dated 7ay 1G, 199D,<A= the 2olicitor 9eneral de!cri e! the!e t'o latter document! a! follo'!F The Ministerial Decisions and Declarations are twenty-five declarations and decisions on a wide range of matters, such as measures in favor of least developed countries, notification procedures, relationship of WTO with the International Monetary Fund (IMF), and agreements on technical barriers to trade and on dispute settlement. The Understanding on Commitments in Financial Services dwell on, among other things, standstill or limitations and qualifications of commitments to existing non-conforming measures, market access, national treatment, and definitions of non-resident supplier of financial services, commercial presence and new financial service. On 1ecem er ?9, 199E, the "re!ent "etition 'a! filed% After careful deli eration on re!"ondent!I comment and "etitioner!I re"ly thereto, the Court re!ol#ed on 1ecem er 1?, 1995, to gi#e due cour!e to the "etition, and the "artie! thereafter filed their re!"ecti#e memoranda% The Court al!o re,ue!ted the 8onora le (ilia ;% Bauti!ta, the 0hili""ine Am a!!ador to the 3nited Nation! !tationed in 9ene#a, 2'itzerland, to !u mit a "a"er, hereafter referred to a! .Bauti!ta 0a"er,/<9= for re#ity, 415 "ro#iding a hi!torical ac*ground of and 4?5 !ummarizing the !aid agreement!%

1uring the Oral Argument held on Augu!t ?B, 199D, the Court directedF (a) the petitioners to submit the (1) Senate Committee Report on the matter in controversy and (2) the transcript of proceedings/hearings in the Senate; and (b) the Solicitor General, as counsel for respondents, to file (1) a list of Philippine treaties signed prior to the Philippine adherence to the WTO Agreement, which derogate from Philippine sovereignty and (2) copies of the multi-volume WTO Agreement and other documents mentioned in the Final Act, as soon as possible. After recei"t of the foregoing document!, the Court !aid it 'ould con!ider the ca!e !u mitted for re!olution% &n a Com"liance dated 2e"tem er 1D, 199D, the 2olicitor 9eneral !u mitted a "rinted co"y of the GD)#olume Uruguay Round of Multilateral Trade Negotiations , and in another Com"liance dated Octo er ?E, 199D, he li!ted the #ariou! . ilateral or multilateral treatie! or international in!trument! in#ol#ing derogation of 0hili""ine !o#ereignty%/ 0etitioner!, on the other hand, !u mitted their Com"liance dated January ?A, 199B, on January GH, 199B% T)$ I""5$" &n their 7emorandum dated 7arch 11, "etitioner! !ummarized the i!!ue! a! follo'!F 199D,

A. Whether the petition presents a political question or is otherwise not justiciable. B. Whether the petitioner members of the Senate who participated in the deliberations and voting leading to the concurrence are estopped from impugning the validity of the Agreement Establishing the World Trade Organization or of the validity of the concurrence.

C. Whether the provisions of the Agreement Establishing the World Trade Organization contravene the provisions of Sec. 19, Article II, and Secs. 10 and 12, Article XII, all of the 1987 Philippine Constitution. D. Whether provisions of the Agreement Establishing the World Trade Organization unduly limit, restrict and impair Philippine sovereignty specifically the legislative power which, under Sec. 2, Article VI, 1987 Philippine Constitution is vested in the Congress of the Philippines; E. Whether provisions of the Agreement Establishing the World Trade Organization interfere with the exercise of judicial power. F. Whether the respondent members of the Senate acted in grave abuse of discretion amounting to lack or excess of jurisdiction when they voted for concurrence in the ratification of the constitutionally-infirm Agreement Establishing the World Trade Organization. G. Whether the respondent members of the Senate acted in grave abuse of discretion amounting to lack or excess of jurisdiction when they concurred only in the ratification of the Agreement Establishing the World Trade Organization, and not with the Presidential submission which included the Final Act, Ministerial Declaration and Decisions, and the Understanding on Commitments in Financial Services. On the other hand, the 2olicitor 9eneral a! coun!el for re!"ondent! .!ynthe!ized the !e#eral i!!ue! rai!ed y "etitioner! into the follo'ing/F<1H= 1. Whether or not the provisions of the Agreement Establishing the World Trade Organization and the Agreements and Associated Legal Instruments included in Annexes one (1), two (2) and three (3) of that agreement cited by petitioners

directly contravene or undermine the letter, spirit and intent of Section 19, Article II and Sections 10 and 12, Article XII of the 1987 Constitution. 2. Whether or not certain provisions of the Agreement unduly limit, restrict or impair the exercise of legislative power by Congress. 3. Whether or not certain provisions of the Agreement impair the exercise of judicial power by this Honorable Court in promulgating the rules of evidence. 4. Whether or not the concurrence of the Senate in the ratification by the President of the Philippines of the Agreement establishing the World Trade Organization implied rejection of the treaty embodied in the Final Act. By rai!ing and arguing only four i!!ue! again!t the !e#en "re!ented y "etitioner!, the 2olicitor 9eneral ha! effecti#ely ignored three, namelyF 415 'hether the "etition "re!ent! a "olitical ,ue!tion or i! other'i!e not $u!ticia le6 4?5 'hether "etitioner)mem er! of the 2enate 4Wig erto E% TaJada and Anna 1omini,ue Co!eteng5 are e!to""ed from $oining thi! !uit6 and 4G5 'hether the re!"ondent) mem er! of the 2enate acted in gra#e a u!e of di!cretion 'hen they #oted for concurrence in the ratification of the WTO Agreement% The foregoing not'ith!tanding, thi! Court re!ol#ed to deal 'ith the!e three i!!ue! thu!F (1) The political question issue -- being very fundamental and vital, and being a matter that probes into the very jurisdiction of this Court to hear and decide this case -- was deliberated upon by the Court and will thus be ruled upon as the first issue; (2) The matter of estoppel will not be taken up because this defense is waivable and the respondents have effectively waived it by not pursuing it in any of their pleadings; in any event, this issue, even if ruled in respondents favor, will not cause the petitions dismissal as there are petitioners other than the two

senators, who are not vulnerable to the defense of estoppel; and (3) The issue of alleged grave abuse of discretion on the part of the respondent senators will be taken up as an integral part of the disposition of the four issues raised by the Solicitor General. 1uring it! deli eration! on the ca!e, the Court noted that the re!"ondent! did not ,ue!tion the locus standi of "etitioner!% 8ence, they are al!o deemed to ha#e 'ai#ed the enefit of !uch i!!ue% They "ro a ly realized that gra#e con!titutional i!!ue!, e+"enditure! of "u lic fund! and !eriou! international commitment! of the nation are in#ol#ed here, and that tran!cendental "u lic intere!t re,uire! that the !u !tanti#e i!!ue! e met head on and decided on the merit!, rather than !*irted or deflected y "rocedural matter!%<11= To reca"itulate, the i!!ue! that 'ill !hortly areF
415

e ruled u"on

1OE2 T8E 0ET&T&ON 0;E2ENT A J32T&C&AB(E CONT;O>E;2KC OT8E;W&2E 2TATE1, 1OE2 T8E 0ET&T&ON &N>O(>E A 0O(&T&CA( L3E2T&ON O>E; W8&C8 T8&2 CO3;T 8A2 NO J3;&21&CT&ONC 1O T8E 0;O>&2&ON2 O- T8E WTO A9;EE7ENT AN1 &T2 T8;EE ANNEME2 CONT;A>ENE 2EC% 19, A;T&C(E &&, AN1 2EC2% 1H AN1 1?, A;T&C(E M&&, O- T8E 08&(&00&NE CON2T&T3T&ONC

4?5

4G5 1O T8E 0;O>&2&ON2 O- 2A&1 A9;EE7ENT AN1 &T2 ANNEME2 (&7&T, ;E2T;&CT, O; &70A&; T8E EME;C&2E O- (E9&2(AT&>E 0OWE; BK CON9;E22C 4E5 1O 2A&1 0;O>&2&ON2 3N13(K &70A&; O; &NTE;-E;E W&T8 T8E EME;C&2E OJ31&C&A( 0OWE; BK T8&2 CO3;T &N 0;O73(9AT&N9 ;3(E2 ON E>&1ENCEC

455 WA2 T8E CONC3;;ENCE O- T8E 2ENATE &N T8E WTO A9;EE7ENT AN1 &T2 ANNEME2 23--&C&ENT AN1@O; >A(&1, CON2&1E;&N9 T8AT &T 1&1 NOT &NC(31E T8E -&NA( ACT, 7&N&2TE;&A( 1EC(A;AT&ON2 AN1 1EC&2&ON2, AN1 T8E 3N1E;2TAN1&N9 ON CO77&T7ENT2 &N -&NANC&A( 2E;>&CE2C

T)$ 8+&"( I""5$? Does the Court Have Jurisdiction Over the ControversyA &n !ee*ing to nullify an act of the 0hili""ine 2enate on the ground that it contra#ene! the Con!titution, the "etition no dou t rai!e! a $u!ticia le contro#er!y% Where an action of the legi!lati#e ranch i! !eriou!ly alleged to ha#e infringed the Con!titution, it ecome! not only the right ut in fact the duty of the $udiciary to !ettle the di!"ute% .The ,ue!tion thu! "o!ed i! $udicial rather than "olitical% The duty 4to ad$udicate5 remain! to a!!ure that the !u"remacy of the Con!titution i! u"held%/<1?= Once a .contro#er!y a! to the a""lication or inter"retation of a con!titutional "ro#i!ion i! rai!ed efore thi! Court 4a! in the in!tant ca!e5, it ecome! a legal i!!ue 'hich the Court i! ound y con!titutional mandate to decide%/<1G= The $uri!diction of thi! Court to ad$udicate the matter!<1E= rai!ed in the "etition i! clearly !et out in the 19AB Con!titution,<15= a! follo'!F Judicial power includes the duty of the courts of justice to settle actual controversies involving rights which are legally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the government. The foregoing te+t em"ha!ize! the $udicial de"artmentI! duty and "o'er to !tri*e do'n gra#e a u!e of di!cretion on the "art of any ranch or in!trumentality of

go#ernment including Congre!!% &t i! an inno#ation in our "olitical la'%<1D= A! e+"lained y former Chief Ju!tice ;o erto Conce"cion,<1B= .the $udiciary i! the final ar iter on the ,ue!tion of 'hether or not a ranch of go#ernment or any of it! official! ha! acted 'ithout $uri!diction or in e+ce!! of $uri!diction or !o ca"riciou!ly a! to con!titute an a u!e of di!cretion amounting to e+ce!! of $uri!diction% Thi! i! not only a $udicial "o'er ut a duty to "a!! $udgment on matter! of thi! nature%/ A! thi! Court ha! re"eatedly and firmly em"ha!ized in many ca!e!,<1A= it 'ill not !hir*, digre!! from or a andon it! !acred duty and authority to u"hold the Con!titution in matter! that in#ol#e gra#e a u!e of di!cretion rought efore it in a""ro"riate ca!e!, committed y any officer, agency, in!trumentality or de"artment of the go#ernment% A! the "etition allege! gra#e a u!e of di!cretion and a! there i! no other "lain, !"eedy or ade,uate remedy in the ordinary cour!e of la', 'e ha#e no he!itation at all in holding that thi! "etition !hould e gi#en due cour!e and the #ital ,ue!tion! rai!ed therein ruled u"on under ;ule D5 of the ;ule! of Court% &ndeed, certiorari, "rohi ition and mandamus are a""ro"riate remedie! to rai!e con!titutional i!!ue! and to re#ie' and@or "rohi it@nullify, 'hen "ro"er, act! of legi!lati#e and e+ecuti#e official!% On thi!, 'e ha#e no e,ui#ocation% We !hould !tre!! that, in deciding to ta*e $uri!diction o#er thi! "etition, thi! Court 'ill not re#ie' the wisdom of the deci!ion of the 0re!ident and the 2enate in enli!ting the country into the WTO, or "a!! u"on the merits of trade li eralization a! a "olicy e!"ou!ed y !aid international ody% Neither 'ill it rule on the propriety of the go#ernmentI! economic "olicy of reducing@remo#ing tariff!, ta+e!, !u !idie!, ,uantitati#e re!triction!, and other im"ort@trade arrier!% ;ather, it 'ill only e+erci!e it! con!titutional duty .to determine 'hether or not there had een a gra#e a u!e of di!cretion amounting to lac* or

e+ce!! of $uri!diction/ on the "art of the 2enate in ratifying the WTO Agreement and it! three anne+e!% !$=ond I""5$? The WTO Agreement and Economic Nationalism Thi! i! the lis mota, the main i!!ue, rai!ed "etition% y the

0etitioner! #igorou!ly argue that the .letter, !"irit and intent/ of the Con!titution mandating .economic nationali!m/ are #iolated y the !o)called ."arity "ro#i!ion!/ and .national treatment/ clau!e! !cattered in #ariou! "art! not only of the WTO Agreement and it! anne+e! ut al!o in the 7ini!terial 1eci!ion! and 1eclaration! and in the 3nder!tanding on Commitment! in -inancial 2er#ice!% 2"ecifically, the .flag!hi"/ con!titutional "ro#i!ion! referred to are 2ec% 19, Article &&, and 2ec!% 1H and 1?, Article M&&, of the Con!titution, 'hich are 'orded a! follo'!F Article II DECLARATION OF PRINCIPLES AND STATE POLICIES ++ ++ ++ ++ Sec. 19. The State shall develop a self-reliant and independent national economy effectively controlled by Filipinos. ++ ++ ++ ++ Article XII

NATIONAL ECONOMY AND PATRIMONY ++ ++ ++ ++ Sec. 10. x x x. The Congress shall enact measures that will encourage the formation and operation of enterprises whose capital is wholly owned by Filipinos. In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos. ++ ++ ++ ++ Sec. 12. The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive. 0etitioner! a#er that the!e !acred con!titutional "rinci"le! are de!ecrated y the follo'ing WTO "ro#i!ion! ,uoted in their memorandumF<19= a) In the area of investment measures related to trade in goods (TRIMS, for brevity): Article 2 National Treatment and Quantitative Restrictions. 1. Without prejudice to other rights and obligations under GATT 1994. no Member shall apply any TRIM that is inconsistent with the provisions of Article III or Article XI of GATT 1994. 2. An Illustrative list of TRIMS that are inconsistent with the obligations of general elimination of

quantitative restrictions provided for in paragraph I of Article XI of GATT 1994 is contained in the Annex to this Agreement. (Agreement on TradeRelated Investment Measures, Vol. 27, Uruguay Round, Legal Instruments, p.22121, emphasis supplied). The Anne+ referred to read! a! follo'!F ANNEX Illustrative List 1. TRIMS that are inconsistent with the obligation of national treatment provided for in paragraph 4 of Article III of GATT 1994 include those which are mandatory or enforceable under domestic law or under administrative rulings, or compliance with which is necessary to obtain an advantage, and which require: (a) the purchase or use by an enterprise of products of domestic origin or from any domestic source, whether specified in terms of particular products, in terms of volume or value of products, or in terms of proportion of volume or value of its local production; or (b) that an enterprises purchases or use of imported products be limited to an amount related to the volume or value of local products that it exports. 2. TRIMS that are inconsistent with the obligations of general elimination of quantitative restrictions provided for in paragraph 1 of Article XI of GATT 1994 include those which are mandatory or enforceable under domestic laws or under administrative rulings, or compliance with which is necessary to obtain an advantage, and which restrict:

(a) the importation by an enterprise of products used in or related to the local production that it exports; (b) the importation by an enterprise of products used in or related to its local production by restricting its access to foreign exchange inflows attributable to the enterprise; or (c) the exportation or sale for export specified in terms of particular products, in terms of volume or value of products, or in terms of a preparation of volume or value of its local production. (Annex to the Agreement on Trade-Related Investment Measures, Vol. 27, Uruguay Round Legal Documents, p.22125, emphasis supplied). The paragraph 4 of Article III of GATT 1994 referred to is quoted as follows: The products of the territory of any contracting party imported into the territory of any other contracting party shall be accorded treatment no less favorable than that accorded to like products of national origin in respect of laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. the provisions of this paragraph shall not prevent the application of differential internal transportation charges which are based exclusively on the economic operation of the means of transport and not on the nationality of the product. (Article III, GATT 1947, as amended by the Protocol Modifying Part II, and Article XXVI of GATT, 14 September 1948, 62 UMTS 82-84 in relation to paragraph 1(a) of the General Agreement on Tariffs and Trade 1994, Vol. 1, Uruguay Round, Legal Instruments p.177, emphasis supplied). b) In the area of trade related aspects of intellectual property rights (TRIPS, for brevity):

Each Member shall accord to the nationals of other Members treatment no less favourable than that it accords to its own nationals with regard to the protection of intellectual property... (par. 1, Article 3, Agreement on Trade-Related Aspect of Intellectual Property rights, Vol. 31, Uruguay Round, Legal Instruments, p.25432 (emphasis supplied) (c) In the area of the General Agreement on Trade in Services: National Treatment 1. In the sectors inscribed in its schedule, and subject to any conditions and qualifications set out therein, each Member shall accord to services and service suppliers of any other Member, in respect of all measures affecting the supply of services, treatment no less favourable than it accords to its own like services and service suppliers. 2. A Member may meet the requirement of paragraph I by according to services and service suppliers of any other Member, either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers. 3. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of completion in favour of services or service suppliers of the Member compared to like services or service suppliers of any other Member. (Article XVII, General Agreement on Trade in Services, Vol. 28, Uruguay Round Legal Instruments, p.22610 emphasis supplied). &t i! "etitioner!I "o!ition that the foregoing .national treatment/ and ."arity "ro#i!ion!/ of the WTO Agreement ."lace national! and "roduct! of mem er countrie! on the

!ame footing a! -ili"ino! and local "roduct!,/ in contra#ention of the .-ili"ino -ir!t/ "olicy of the Con!titution% They allegedly render meaningle!! the "hra!e .effecti#ely controlled y -ili"ino!%/ The con!titutional conflict ecome! more manife!t 'hen #ie'ed in the conte+t of the clear duty im"o!ed on the 0hili""ine! a! a WTO mem er to en!ure the conformity of it! la'!, regulation! and admini!trati#e "rocedure! 'ith it! o ligation! a! "ro#ided in the anne+ed agreement!%<?H= 0etitioner! further argue that the!e "ro#i!ion! contra#ene con!titutional limitation! on the role e+"ort! "lay in national de#elo"ment and negate the "referential treatment accorded to -ili"ino la or, dome!tic material! and locally "roduced good!% On the other hand, re!"ondent! through the 2olicitor 9eneral counter 415 that !uch Charter "ro#i!ion! are not !elf)e+ecuting and merely !et out general "olicie!6 4?5 that the!e nationali!tic "ortion! of the Con!titution in#o*ed y "etitioner! !hould not e read in i!olation ut !hould e related to other rele#ant "ro#i!ion! of Art% M&&, "articularly 2ec!% 1 and 1G thereof6 4G5 that read "ro"erly, the cited WTO clau!e! do not conflict 'ith the Con!titution6 and 4E5 that the WTO Agreement contain! !ufficient "ro#i!ion! to "rotect de#elo"ing countrie! li*e the 0hili""ine! from the har!hne!! of !udden trade li eralization% We !hall no' di!cu!! and rule on the!e argument!% D$=,a&a(+on o' *&+n=+-,$" No( !$,'9E.$=5(+n: By it! #ery title, Article && of the Con!titution i! a .declaration of "rinci"le! and !tate "olicie!%/ The counter"art of thi! article in the 19G5 Con!titution<?1= i! called the . a!ic "olitical creed of the nation/ y 1ean >icente 2inco%<??= The!e "rinci"le! in Article && are not intended to e !elf)e+ecuting "rinci"le! ready for enforcement through the court!%<?G= They are u!ed y the

$udiciary a! aid! or a! guide! in the e+erci!e of it! "o'er of $udicial re#ie', and y the legi!lature in it! enactment of la'!% A! held in the leading ca!e of Kilosbayan, Incorporated vs. Morato,<?E= the "rinci"le! and !tate "olicie! enumerated in Article && and !ome !ection! of Article M&& are not .!elf)e+ecuting "ro#i!ion!, the di!regard of 'hich can gi#e ri!e to a cau!e of action in the court!% They do not em ody $udicially enforcea le con!titutional right! ut guideline! for legi!lation%/ &n the !ame light, 'e held in asco vs. !agcor<?5= that road con!titutional "rinci"le! need legi!lati#e enactment! to im"lement them, thu!F On petitioners allegation that P.D. 1869 violates Sections 11 (Personal Dignity) 12 (Family) and 13 (Role of Youth) of Article II; Section 13 (Social Justice) of Article XIII and Section 2 (Educational Values) of Article XIV of the 1987 Constitution, suffice it to state also that these are merely statements of principles and policies. As such, they are basically not selfexecuting, meaning a law should be passed by Congress to clearly define and effectuate such principles. In general, therefore, the 1935 provisions were not intended to be self-executing principles ready for enforcement through the courts. They were rather directives addressed to the executive and to the legislature. If the executive and the legislature failed to heed the directives of the article, the available remedy was not judicial but political. The electorate could express their displeasure with the failure of the executive and the legislature through the language of the ballot. (Bernas, Vol. II, p. 2). The rea!on! for denying a cau!e of action to an alleged infringement of road con!titutional "rinci"le! are !ourced from a!ic con!ideration! of due "roce!! and the lac* of $udicial authority to 'ade .into the uncharted ocean of !ocial and economic "olicy ma*ing%/ 7r% Ju!tice -lorentino 0% -eliciano in hi! concurring o"inion in "posa vs. #actoran, $r%,<?D= e+"lained the!e rea!on! a! follo'!F

My suggestion is simply that petitioners must, before the trial court, show a more specific legal right -- a right cast in language of a significantly lower order of generality than Article II (15) of the Constitution -- that is or may be violated by the actions, or failures to act, imputed to the public respondent by petitioners so that the trial court can validly render judgment granting all or part of the relief prayed for. To my mind, the court should be understood as simply saying that such a more specific legal right or rights may well exist in our corpus of law, considering the general policy principles found in the Constitution and the existence of the Philippine Environment Code, and that the trial court should have given petitioners an effective opportunity so to demonstrate, instead of aborting the proceedings on a motion to dismiss. It seems to me important that the legal right which is an essential component of a cause of action be a specific, operable legal right, rather than a constitutional or statutory policy, for at least two (2) reasons. One is that unless the legal right claimed to have been violated or disregarded is given specification in operational terms, defendants may well be unable to defend themselves intelligently and effectively; in other words, there are due process dimensions to this matter. The second is a broader-gauge consideration -- where a specific violation of law or applicable regulation is not alleged or proved, petitioners can be expected to fall back on the expanded conception of judicial power in the second paragraph of Section 1 of Article VIII of the Constitution which reads: Section 1. xxx

Judicial power includes the duty of the courts of justice to settle actual controversies involving rights which are legally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government. (Emphases supplied)

When substantive standards as general as the right to a balanced and healthy ecology and the right to health are combined with remedial standards as broad ranging as a grave abuse of discretion amounting to lack or excess of jurisdiction, the result will be, it is respectfully submitted, to propel courts into the uncharted ocean of social and economic policy making. At least in respect of the vast area of environmental protection and management, our courts have no claim to special technical competence and experience and professional qualification. Where no specific, operable norms and standards are shown to exist, then the policy making departments -- the legislative and executive departments -- must be given a real and effective opportunity to fashion and promulgate those norms and standards, and to implement them before the courts should intervene. E=ono#+= Na(+ona,+"# !)o5,d B$ R$ad >+() O()$& on"(+(5(+ona, Manda($" (o A((a+n Ba,an=$d D$6$,o-#$n( o' E=ono#y On the other hand, 2ec!% 1H and 1? of Article M&&, a"art from merely laying do'n general "rinci"le! relating to the national economy and "atrimony, !hould e read and under!tood in relation to the other !ection! in !aid article, e!"ecially 2ec!% 1 and 1G thereof 'hich readF Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged. The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. However, the State shall protect Filipino

enterprises against unfair foreign competition and trade practices. In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity to develop. x x x + + + + +++ Sec. 13. The State shall pursue a trade policy that serves the general welfare and utilizes all forms and arrangements of exchange on the basis of equality and reciprocity. A! "ointed out y the 2olicitor 9eneral, 2ec% 1 lay! do'n the a!ic goal! of national economic de#elo"ment, a! follo'!F 1% A more e,uita le di!tri ution of o""ortunitie!, income and 'ealth6 ?% A !u!tained increa!e in the amount of good! and !er#ice! "ro#ided y the nation for the enefit of the "eo"le6 and G% An e+"anding "roducti#ity a! the *ey to rai!ing the ,uality of life for all e!"ecially the under"ri#ileged% With the!e goal! in conte+t, the Con!titution then ordain! the ideal! of economic nationali!m 415 y e+"re!!ing "reference in fa#or of ,ualified -ili"ino! .in the grant of right!, "ri#ilege! and conce!!ion! co#ering the national economy and "atrimony/<?B= and in the u!e of .-ili"ino la or, dome!tic material! and locally)"roduced good!/6 4?5 y mandating the 2tate to .ado"t mea!ure! that hel" ma*e them com"etiti#e6<?A= and 4G5 y re,uiring the 2tate to .de#elo" a !elf)reliant and inde"endent national economy effecti#ely controlled y -ili"ino!%/ <?9= &n !imilar language, the Con!titution ta*e! into account the realitie! of the out!ide 'orld a! it re,uire! the "ur!uit of .a + +

trade "olicy that !er#e! the general 'elfare and utilize! all form! and arrangement! of e+change on the a!i! of e,uality and reci"rocity/6<GH= and !"ea*! of indu!trie! .'hich are com"etiti#e in oth dome!tic and foreign mar*et!/ a! 'ell a! of the "rotection of .-ili"ino enter"ri!e! again!t unfair foreign com"etition and trade "ractice!%/ &t i! true that in the recent ca!e of Manila !rince %otel vs. &overnment 'ervice Insurance 'ystem, et al %,<G1= thi! Court held that .2ec% 1H, !econd "ar%, Art% M&& of the 19AB Con!titution i! a mandatory, "o!iti#e command 'hich i! com"lete in it!elf and 'hich need! no further guideline! or im"lementing la'! or rule! for it! enforcement% -rom it! #ery 'ord! the "ro#i!ion doe! not re,uire any legi!lation to "ut it in o"eration% &t i! per se $udicially enforcea le%/ 8o'e#er, a! the con!titutional "ro#i!ion it!elf !tate!, it i! enforcea le only in regard to .the grant! of right!, "ri#ilege! and conce!!ion! co#ering national economy and "atrimony/ and not to e#ery a!"ect of trade and commerce% &t refer! to e+ce"tion! rather than the rule% The i!!ue here i! not 'hether thi! "aragra"h of 2ec% 1H of Art% M&& i! !elf)e+ecuting or not% ;ather, the i!!ue i! 'hether, a! a rule, there are enough alancing "ro#i!ion! in the Con!titution to allo' the 2enate to ratify the 0hili""ine concurrence in the WTO Agreement% And 'e hold that there are% All told, 'hile the Con!titution indeed mandate! a ia! in fa#or of -ili"ino good!, !er#ice!, la or and enter"ri!e!, at the !ame time, it recognize! the need for u!ine!! e+change 'ith the re!t of the 'orld on the a!e! of e,uality and reci"rocity and limit! "rotection of -ili"ino enter"ri!e! only again!t foreign com"etition and trade "ractice! that are unfair%<G?= &n other 'ord!, the Con!titution did not intend to "ur!ue an i!olationi!t "olicy% &t did not !hut out foreign in#e!tment!, good! and !er#ice! in the de#elo"ment of the 0hili""ine economy% While the

Con!titution doe! not encourage the unlimited entry of foreign good!, !er#ice! and in#e!tment! into the country, it doe! not "rohi it them either% &n fact, it allo'! an e+change on the a!i! of e,uality and reci"rocity, fro'ning only on foreign com"etition that i! unfair% WTO R$=o:n+;$" N$$d (o *&o($=( W$a@ E=ono#+$" 3"on the other hand, re!"ondent! maintain that the WTO it!elf ha! !ome uilt)in ad#antage! to "rotect 'ea* and de#elo"ing economie!, 'hich com"ri!e the #a!t ma$ority of it! mem er!% 3nli*e in the 3N 'here ma$or !tate! ha#e "ermanent !eat! and #eto "o'er! in the 2ecurity Council, in the WTO, deci!ion! are made on the a!i! of !o#ereign e,uality, 'ith each mem erI! #ote e,ual in 'eight to that of any other% There i! no WTO e,ui#alent of the 3N 2ecurity Council% WTO decides by consensus whenever possible, otherwise, decisions of the Ministerial Conference and the General Council shall be taken by the majority of the votes cast, except in cases of interpretation of the Agreement or waiver of the obligation of a member which would require three fourths vote. Amendments would require two thirds vote in general. Amendments to MFN provisions and the Amendments provision will require assent of all members. Any member may withdraw from the Agreement upon the expiration of six months from the date of notice of withdrawals.[33] 8ence, "oor countrie! can "rotect their common intere!t! more effecti#ely through the WTO than through one)on)one negotiation! 'ith de#elo"ed countrie!% Within the WTO, de#elo"ing countrie! can form "o'erful loc! to "u!h their economic agenda more deci!i#ely than out!ide the Organization% Thi! i! not merely a matter of "ractical alliance! ut a negotiating !trategy rooted in la'% Thu!, the a!ic "rinci"le! underlying the WTO Agreement recognize the need of de#elo"ing countrie! li*e the

0hili""ine! to .!hare in the gro'th in international trade commen!urate 'ith the need! of their economic de#elo"ment%/ The!e a!ic "rinci"le! are found in the "ream le<GE= of the WTO Agreement a! follo'!F The Parties to this Agreement, Recognizing that their relations in the field of trade and economic endeavour should be conducted with a view to raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, and expanding the production of and trade in goods and services, while allowing for the optimal use of the worlds resources in accordance with the objective of sustainable development, seeking both to protect and preserve the environment and to enhance the means for doing so in a manner consistent with their respective needs and concerns at different levels of economic development, Recognizing further that there is need for positive efforts designed to ensure that developing countries, and especially the least developed among them, secure a share in the growth in international trade commensurate with the needs of their economic development, Being desirous of contributing to these objectives by entering into reciprocal and mutually advantageous arrangements directed to the substantial reduction of tariffs and other barriers to trade and to the elimination of discriminatory treatment in international trade relations, Resolved, therefore, to develop an integrated, more viable and durable multilateral trading system encompassing the General Agreement on Tariffs and Trade, the results of past trade liberalization efforts, and all of the results of the Uruguay Round of Multilateral Trade Negotiations, Determined to preserve the basic principles and to further the objectives underlying this multilateral trading system, x x x.

(underscoring supplied.) !-$=+'+= WTO *&o6+"o" *&o($=( D$6$,o-+n: o5n(&+$"

2o too, the 2olicitor 9eneral "oint! out that "ur!uant to and con!i!tent 'ith the foregoing a!ic "rinci"le!, the WTO Agreement grant! de#elo"ing countrie! a more lenient treatment, gi#ing their dome!tic indu!trie! !ome "rotection from the ru!h of foreign com"etition% Thu!, 'ith re!"ect to tariff! in general, "referential treatment i! gi#en to de#elo"ing countrie! in term! of the amount of tariff reduction and the "eriod 'ithin 'hich the reduction i! to e !"read out% 2"ecifically, 9ATT re,uire! an a#erage tariff reduction rate of GDN for de#elo"ed countrie! to e effected 'ithin a "eriod of !i+ 4D5 year! 'hile de#elo"ing countrie! )) including the 0hili""ine! )) are re,uired to effect an a#erage tariff reduction of only ?EN 'ithin ten 41H5 year!% &n re!"ect to dome!tic !u !idy, 9ATT re,uire! de#elo"ed countrie! to reduce dome!tic !u""ort to agricultural "roduct! y ?HN o#er !i+ 4D5 year!, a! com"ared to only 1GN for de#elo"ing countrie! to e effected 'ithin ten 41H5 year!% &n regard to e+"ort !u !idy for agricultural "roduct!, 9ATT re,uire! de#elo"ed countrie! to reduce their udgetary outlay! for e+"ort !u !idy y GDN and e+"ort #olume! recei#ing e+"ort !u !idy y ?1N 'ithin a "eriod of !i+ 4D5 year!% -or de#elo"ing countrie!, ho'e#er, the reduction rate i! only t'o)third! of that "re!cri ed for de#elo"ed countrie! and a longer "eriod of ten 41H5 year! 'ithin 'hich to effect !uch reduction% 7oreo#er, 9ATT it!elf ha! "ro#ided uilt)in "rotection from unfair foreign com"etition and trade "ractice! including anti)dum"ing mea!ure!, counter#ailing mea!ure! and !afeguard! again!t im"ort !urge!% Where

local u!ine!!e! are $eo"ardized y unfair foreign com"etition, the 0hili""ine! can a#ail of the!e mea!ure!% There i! hardly therefore any a!i! for the !tatement that under the WTO, local indu!trie! and enter"ri!e! 'ill all e 'i"ed out and that -ili"ino! 'ill e de"ri#ed of control of the economy% Luite the contrary, the 'ea*er !ituation! of de#elo"ing nation! li*e the 0hili""ine! ha#e een ta*en into account6 thu!, there 'ould e no a!i! to !ay that in $oining the WTO, the re!"ondent! ha#e gra#ely a u!ed their di!cretion% True, they ha#e made a old deci!ion to !teer the !hi" of !tate into the yet uncharted !ea of economic li eralization% But !uch deci!ion cannot e !et a!ide on the ground of gra#e a u!e of di!cretion, !im"ly ecau!e 'e di!agree 'ith it or !im"ly ecau!e 'e elie#e only in other economic "olicie!% A! earlier !tated, the Court in ta*ing $uri!diction of thi! ca!e 'ill not "a!! u"on the ad#antage! and di!ad#antage! of trade li eralization a! an economic "olicy% &t 'ill only "erform it! con!titutional duty of determining 'hether the 2enate committed gra#e a u!e of di!cretion% on"(+(5(+on Do$" No( R5,$ O5( 8o&$+:n o#-$(+(+on

-urthermore, the con!titutional "olicy of a .!elf)reliant and inde"endent national economy/<G5= doe! not nece!!arily rule out the entry of foreign in#e!tment!, good! and !er#ice!% &t contem"late! neither .economic !eclu!ion/ nor .mendicancy in the international community%/ A! e+"lained y Con!titutional Commi!!ioner Bernardo >illega!, !"on!or of thi! con!titutional "olicyF Economic self-reliance is a primary objective of a developing country that is keenly aware of overdependence on external assistance for even its most basic needs. It does not mean autarky or economic seclusion; rather, it means avoiding mendicancy in the international community. Independence refers to the freedom from undue foreign control of the national

economy, especially in such strategic industries as in the development of natural resources and public utilities.[36] The WTO reliance on .mo!t fa#ored nation,/ .national treatment,/ and .trade 'ithout di!crimination/ cannot e !truc* do'n a! uncon!titutional a! in fact they are rule! of e,uality and reci"rocity that a""ly to all WTO mem er!% A!ide from en#i!ioning a trade "olicy a!ed on .e,uality and reci"rocity,/<GB= the fundamental la' encourage! indu!trie! that are .com"etiti#e in oth dome!tic and foreign mar*et!,/ there y demon!trating a clear "olicy again!t a !heltered dome!tic trade en#ironment, ut one in fa#or of the gradual de#elo"ment of ro u!t indu!trie! that can com"ete 'ith the e!t in the foreign mar*et!% &ndeed, -ili"ino manager! and -ili"ino enter"ri!e! ha#e !ho'n ca"a ility and tenacity to com"ete internationally% And gi#en a free trade en#ironment, -ili"ino entre"reneur! and manager! in 8ong*ong ha#e demon!trated the -ili"ino ca"acity to gro' and to "ro!"er again!t the e!t offered under a "olicy of laisse( faire% on"(+(5(+on 8a6o&" En($&-&+"$" on"5#$&", No( Ind5"(&+$" o&

The Con!titution ha! not really !ho'n any un alanced ia! in fa#or of any u!ine!! or enter"ri!e, nor doe! it contain any !"ecific "ronouncement that -ili"ino com"anie! !hould e "am"ered 'ith a total "ro!cri"tion of foreign com"etition% On the other hand, re!"ondent! claim that WTO@9ATT aim! to ma*e a#aila le to the -ili"ino con!umer the e!t good! and !er#ice! o taina le any'here in the 'orld at the mo!t rea!ona le "rice!% Con!e,uently, the ,ue!tion oil! do'n to 'hether WTO@9ATT 'ill fa#or the general 'elfare of the "u lic at large% Will adherence to the WTO treaty ring thi! ideal 4of fa#oring the general 'elfare5 to realityC

Will WTO@9ATT !ucceed in "romoting the -ili"ino!I general 'elfare ecau!e it 'ill )) a! "romi!ed y it! "romoter! )) e+"and the countryI! e+"ort! and generate more em"loymentC Will it ring more "ro!"erity, em"loyment, "urcha!ing "o'er and ,uality "roduct! at the mo!t rea!ona le rate! to the -ili"ino "u licC The re!"on!e! to the!e ,ue!tion! in#ol#e .$udgment call!/ y our "olicy ma*er!, for 'hich they are an!'era le to our "eo"le during a""ro"riate electoral e+erci!e!% 2uch ,ue!tion! and the an!'er! thereto are not !u $ect to $udicial "ronouncement! a!ed on gra#e a u!e of di!cretion% on"(+(5(+on D$"+:n$d (o M$$( 85(5&$ E6$n(" and on(+n:$n=+$" No dou t, the WTO Agreement 'a! not yet in e+i!tence 'hen the Con!titution 'a! drafted and ratified in 19AB% That doe! not mean ho'e#er that the Charter i! nece!!arily fla'ed in the !en!e that it! framer! might not ha#e antici"ated the ad#ent of a orderle!! 'orld of u!ine!!% By the !ame to*en, the 3nited Nation! 'a! not yet in e+i!tence 'hen the 19G5 Con!titution ecame effecti#e% 1id that nece!!arily mean that the then Con!titution might not ha#e contem"lated a diminution of the a !olutene!! of !o#ereignty 'hen the 0hili""ine! !igned the 3N Charter, there y effecti#ely !urrendering "art of it! control o#er it! foreign relation! to the deci!ion! of #ariou! 3N organ! li*e the 2ecurity CouncilC &t i! not difficult to an!'er thi! ,ue!tion% Con!titution! are de!igned to meet not only the #agarie! of contem"orary e#ent!% They !hould e inter"reted to co#er e#en future and un*no'n circum!tance!% &t i! to the credit of it! drafter! that a Con!titution can 'ith!tand the a!!ault! of igot! and infidel! ut at the !ame time end

'ith the refre!hing 'ind! of change nece!!itated y unfolding e#ent!% A! one eminent "olitical la' 'riter and re!"ected $uri!t<GA= e+"lain!F The Constitution must be quintessential rather than superficial, the root and not the blossom, the base and framework only of the edifice that is yet to rise. It is but the core of the dream that must take shape, not in a twinkling by mandate of our delegates, but slowly in the crucible of Filipino minds and hearts, where it will in time develop its sinews and gradually gather its strength and finally achieve its substance. In fine, the Constitution cannot, like the goddess Athena, rise full-grown from the brow of the Constitutional Convention, nor can it conjure by mere fiat an instant Utopia. It must grow with the society it seeks to re-structure and march apace with the progress of the race, drawing from the vicissitudes of history the dynamism and vitality that will keep it, far from becoming a petrified rule, a pulsing, living law attuned to the heartbeat of the nation. T)+&d I""5$? The WTO Agreement and egislative !o"er The WTO Agreement "ro#ide! that .4e5ach 7em er !hall en!ure the conformity of it! la'!, regulation! and admini!trati#e "rocedure! 'ith it! o ligation! a! "ro#ided in the anne+ed Agreement!%/<G9= 0etitioner! maintain that thi! underta*ing .unduly limit!, re!trict! and im"air! 0hili""ine !o#ereignty, !"ecifically the legi!lati#e "o'er 'hich under 2ec% ?, Article >& of the 19AB 0hili""ine Con!titution i! #e!ted in the Congre!! of the 0hili""ine!% &t i! an a!!ault on the !o#ereign "o'er! of the 0hili""ine! ecau!e thi! mean! that Congre!! could not "a!! legi!lation that 'ill e good for our national intere!t and general 'elfare if !uch legi!lation 'ill not conform 'ith the WTO Agreement, 'hich not only relate! to the trade in good! + + + ut al!o to the flo' of in#e!tment! and money

+ + + a! 'ell a! to a 'hole !le' of agreement! on !ocio) cultural matter! + + +%/<EH= 7ore !"ecifically, "etitioner! claim that !aid WTO proviso derogate! from the "o'er to ta+, 'hich i! lodged in the Congre!!%<E1= And 'hile the Con!titution allo'! Congre!! to authorize the 0re!ident to fi+ tariff rate!, im"ort and e+"ort ,uota!, tonnage and 'harfage due!, and other dutie! or im"o!t!, !uch authority i! !u $ect to .!"ecified limit! and + + + !uch limitation! and re!triction!/ a! Congre!! may "ro#ide,<E?= a! in fact it did under 2ec% EH1 of the Tariff and Cu!tom! Code% !o6$&$+:n(y 0+#+($d %y In($&na(+ona, 0a> and T&$a(+$" Thi! Court note! and a""reciate! the ferocity and "a!!ion y 'hich "etitioner! !tre!!ed their argument! on thi! i!!ue% 8o'e#er, 'hile !o#ereignty ha! traditionally een deemed a !olute and all)encom"a!!ing on the dome!tic le#el, it i! ho'e#er !u $ect to re!triction! and limitation! #oluntarily agreed to y the 0hili""ine!, e+"re!!ly or im"liedly, a! a mem er of the family of nation!% 3n,ue!tiona ly, the Con!titution did not en#i!ion a hermit)ty"e i!olation of the country from the re!t of the 'orld% &n it! 1eclaration of 0rinci"le! and 2tate 0olicie!, the Con!titution .ado"t! the generally acce"ted "rinci"le! of international la' a! "art of the la' of the land, and adhere! to the "olicy of "eace, e,uality, $u!tice, freedom, coo"eration and amity, 'ith all nation!%O<EG= By the doctrine of incor"oration, the country i! ound y generally acce"ted "rinci"le! of international la', 'hich are con!idered to e automatically "art of our o'n la'!%<EE= One of the olde!t and mo!t fundamental rule! in international la' i! pacta sunt servanda )) international agreement! mu!t e "erformed in good faith% .A treaty engagement i! not a mere moral o ligation ut create! a legally inding o ligation on the "artie! + + +% A !tate 'hich ha! contracted #alid international o ligation! i!

ound to ma*e in it! legi!lation! !uch modification! a! may e nece!!ary to en!ure the fulfillment of the o ligation! underta*en%/<E5= By their inherent nature, treatie! really limit or re!trict the a !olutene!! of !o#ereignty% By their #oluntary act, nation! may !urrender !ome a!"ect! of their !tate "o'er in e+change for greater enefit! granted y or deri#ed from a con#ention or "act% After all, !tate!, li*e indi#idual!, li#e 'ith coe,ual!, and in "ur!uit of mutually co#enanted o $ecti#e! and enefit!, they al!o commonly agree to limit the e+erci!e of their other'i!e a !olute right!% Thu!, treatie! ha#e een u!ed to record agreement! et'een 2tate! concerning !uch 'idely di#er!e matter! a!, for e+am"le, the lea!e of na#al a!e!, the !ale or ce!!ion of territory, the termination of 'ar, the regulation of conduct of ho!tilitie!, the formation of alliance!, the regulation of commercial relation!, the !ettling of claim!, the laying do'n of rule! go#erning conduct in "eace and the e!ta li!hment of international organization!%<ED= The !o#ereignty of a !tate therefore cannot in fact and in reality e con!idered a !olute% Certain re!triction! enter into the "ictureF 415 limitation! im"o!ed y the #ery nature of mem er!hi" in the family of nation! and 4?5 limitation! im"o!ed y treaty !ti"ulation!% A! a"tly "ut y John -% :ennedy, .Today, no nation can uild it! de!tiny alone% The age of !elf)!ufficient nationali!m i! o#er% The age of interde"endence i! here%/<EB= UN )a&($& and O()$& T&$a(+$" 0+#+( !o6$&$+:n(y Thu!, 'hen the 0hili""ine! $oined the 3nited Nation! a! one of it! 51 charter mem er!, it con!ented to re!trict it! !o#ereign right! under the .conce"t of !o#ereignty a! auto)limitation%/EB)A 3nder Article ? of the 3N Charter, .4a5ll mem er! !hall gi#e the 3nited Nation! e#ery a!!i!tance in any action it ta*e! in accordance 'ith the "re!ent Charter,

and !hall refrain from gi#ing a!!i!tance to any !tate again!t 'hich the 3nited Nation! i! ta*ing "re#enti#e or enforcement action%/ 2uch a!!i!tance include! "ayment of it! corre!"onding !hare not merely in admini!trati#e e+"en!e! ut al!o in e+"enditure! for the "eace)*ee"ing o"eration! of the organization% &n it! ad#i!ory o"inion of July ?H, 19D1, the &nternational Court of Ju!tice held that money u!ed y the 3nited Nation! Emergency -orce in the 7iddle Ea!t and in the Congo 'ere .e+"en!e! of the 3nited Nation!/ under Article 1B, "aragra"h ?, of the 3N Charter% 8ence, all it! mem er! mu!t ear their corre!"onding !hare in !uch e+"en!e!% &n thi! !en!e, the 0hili""ine Congre!! i! re!tricted in it! "o'er to a""ro"riate% &t i! com"elled to a""ro"riate fund! 'hether it agree! 'ith !uch "eace)*ee"ing e+"en!e! or not% 2o too, under Article 1H5 of the !aid Charter, the 3N and it! re"re!entati#e! en$oy di"lomatic "ri#ilege! and immunitie!, there y limiting again the e+erci!e of !o#ereignty of mem er! 'ithin their o'n territory% Another e+am"leF although .!o#ereign e,uality/ and .dome!tic $uri!diction/ of all mem er! are !et forth a! underlying "rinci"le! in the 3N Charter, !uch provisos are ho'e#er !u $ect to enforcement mea!ure! decided y the 2ecurity Council for the maintenance of international "eace and !ecurity under Cha"ter >&& of the Charter% A final e+am"leF under Article 1HG, .4i5n the e#ent of a conflict et'een the o ligation! of the 7em er! of the 3nited Nation! under the "re!ent Charter and their o ligation! under any other international agreement, their o ligation under the "re!ent charter !hall "re#ail,/ thu! un,ue!tiona ly denying the 0hili""ine! )) a! a mem er )) the !o#ereign "o'er to ma*e a choice a! to 'hich of conflicting o ligation!, if any, to honor% A"art from the 3N Treaty, the 0hili""ine! ha! entered into many other international "act! )) oth ilateral and multilateral )) that in#ol#e limitation! on 0hili""ine !o#ereignty% The!e are enumerated y the 2olicitor

9eneral in hi! Com"liance dated Octo er ?E, 199D, a! follo'!F (a) Bilateral convention with the United States regarding taxes on income, where the Philippines agreed, among others, to exempt from tax, income received in the Philippines by, among others, the Federal Reserve Bank of the United States, the Export/Import Bank of the United States, the Overseas Private Investment Corporation of the United States. Likewise, in said convention, wages, salaries and similar remunerations paid by the United States to its citizens for labor and personal services performed by them as employees or officials of the United States are exempt from income tax by the Philippines. (b) Bilateral agreement with Belgium, providing, among others, for the avoidance of double taxation with respect to taxes on income. (c) Bilateral convention with the Kingdom of Sweden for the avoidance of double taxation. (d) Bilateral convention with the French Republic for the avoidance of double taxation. (e) Bilateral air transport agreement with Korea where the Philippines agreed to exempt from all customs duties, inspection fees and other duties or taxes aircrafts of South Korea and the regular equipment, spare parts and supplies arriving with said aircrafts. (f) Bilateral air service agreement with Japan, where the Philippines agreed to exempt from customs duties, excise taxes, inspection fees and other similar duties, taxes or charges fuel, lubricating oils, spare parts, regular equipment, stores on board Japanese aircrafts while on Philippine soil.

(g) Bilateral air service agreement with Belgium where the Philippines granted Belgian air carriers the same privileges as those granted to Japanese and Korean air carriers under separate air service agreements. (h) Bilateral notes with Israel for the abolition of transit and visitor visas where the Philippines exempted Israeli nationals from the requirement of obtaining transit or visitor visas for a sojourn in the Philippines not exceeding 59 days. (I) Bilateral agreement with France exempting French nationals from the requirement of obtaining transit and visitor visa for a sojourn not exceeding 59 days. (j) Multilateral Convention on Special Missions, where the Philippines agreed that premises of Special Missions in the Philippines are inviolable and its agents can not enter said premises without consent of the Head of Mission concerned. Special Missions are also exempted from customs duties, taxes and related charges. (k) Multilateral Convention on the Law of Treaties. In this convention, the Philippines agreed to be governed by the Vienna Convention on the Law of Treaties. (l) Declaration of the President of the Philippines accepting compulsory jurisdiction of the International Court of Justice. The International Court of Justice has jurisdiction in all legal disputes concerning the interpretation of a treaty, any question of international law, the existence of any fact which, if established, would constitute a breach of international obligation. &n the foregoing treatie!, the 0hili""ine! ha! effecti#ely agreed to limit the e+erci!e of it! !o#ereign "o'er! of ta+ation, eminent domain and "olice "o'er% The

underlying con!ideration in thi! "artial !urrender of !o#ereignty i! the reci"rocal commitment of the other contracting !tate! in granting the !ame "ri#ilege and immunitie! to the 0hili""ine!, it! official! and it! citizen!% The !ame reci"rocity characterize! the 0hili""ine commitment! under WTO)9ATT% International treaties, whether relating to nuclear disarmament, human rights, the environment, the law of the sea, or trade, constrain domestic political sovereignty through the assumption of external obligations. But unless anarchy in international relations is preferred as an alternative, in most cases we accept that the benefits of the reciprocal obligations involved outweigh the costs associated with any loss of political sovereignty. (T)rade treaties that structure relations by reference to durable, well-defined substantive norms and objective dispute resolution procedures reduce the risks of larger countries exploiting raw economic power to bully smaller countries, by subjecting power relations to some form of legal ordering. In addition, smaller countries typically stand to gain disproportionately from trade liberalization. This is due to the simple fact that liberalization will provide access to a larger set of potential new trading relationship than in case of the larger country gaining enhanced success to the smaller countrys market.[48] The "oint i! that, a! !ho'n y the foregoing treatie!, a "ortion of !o#ereignty may e 'ai#ed 'ithout #iolating the Con!titution, a!ed on the rationale that the 0hili""ine! .ado"t! the generally acce"ted "rinci"le! of international la' a! "art of the la' of the land and adhere! to the "olicy of + + + coo"eration and amity 'ith all nation!%/ 8o5&() I""5$? The WTO Agreement and Judicial !o"er 0etitioner! a#er that "aragra"h 1, Article GE of the 9eneral 0ro#i!ion! and Ba!ic 0rinci"le! of the Agreement on Trade);elated A!"ect! of &ntellectual 0ro"erty ;ight!

4T;&025<E9= intrude! on the "o'er of the 2u"reme Court to "romulgate rule! concerning "leading, "ractice and "rocedure!%<5H= To under!tand the !co"e and meaning of Article GE, T;&02,<51= it 'ill e fruitful to re!tate it! full te+t a! follo'!F Article 34 Process Patents: Burden of Proof 1. For the purposes of civil proceedings in respect of the infringement of the rights of the owner referred to in paragraph 1(b) of Article 28, if the subject matter of a patent is a process for obtaining a product, the judicial authorities shall have the authority to order the defendant to prove that the process to obtain an identical product is different from the patented process. Therefore, Members shall provide, in at least one of the following circumstances, that any identical product when produced without the consent of the patent owner shall, in the absence of proof to the contrary, be deemed to have been obtained by the patented process: (a) if the product obtained by the patented process is new; (b) if there is a substantial likelihood that the identical product was made by the process and the owner of the patent has been unable through reasonable efforts to determine the process actually used. 2. Any Member shall be free to provide that the burden of proof indicated in paragraph 1 shall be on the alleged infringer only if the condition referred to in subparagraph (a) is fulfilled or only if the condition referred to in subparagraph (b) is fulfilled. 3. In the adduction of proof to the contrary, the legitimate interests of defendants in protecting their manufacturing

and business secrets shall be taken into account. -rom the a o#e, a WTO 7em er i! re,uired to "ro#ide a rule of di!"uta le 4note the 'ord! .in the a !ence of "roof to the contrary/5 "re!um"tion that a "roduct !ho'n to e identical to one "roduced 'ith the u!e of a "atented "roce!! !hall e deemed to ha#e een o tained y the 4illegal5 u!e of the !aid "atented "roce!!, 415 'here !uch "roduct o tained y the "atented "roduct i! ne', or 4?5 'here there i! .!u !tantial li*elihood/ that the identical "roduct 'a! made 'ith the u!e of the !aid "atented "roce!! ut the o'ner of the "atent could not determine the e+act "roce!! u!ed in o taining !uch identical "roduct% 8ence, the . urden of "roof/ contem"lated y Article GE !hould actually e under!tood a! the duty of the alleged "atent infringer to o#erthro' !uch "re!um"tion% 2uch urden, "ro"erly under!tood, actually refer! to the . urden of e#idence/ 4 urden of going for'ard5 "laced on the "roducer of the identical 4or fa*e5 "roduct to !ho' that hi! "roduct 'a! "roduced 'ithout the u!e of the "atented "roce!!% The foregoing not'ith!tanding, the "atent o'ner !till ha! the . urden of "roof/ !ince, regardle!! of the "re!um"tion "ro#ided under "aragra"h 1 of Article GE, !uch o'ner !till ha! to introduce e#idence of the e+i!tence of the alleged identical "roduct, the fact that it i! .identical/ to the genuine one "roduced y the "atented "roce!! and the fact of .ne'ne!!/ of the genuine "roduct or the fact of .!u !tantial li*elihood/ that the identical "roduct 'a! made y the "atented "roce!!% The foregoing !hould really "re!ent no "ro lem in changing the rule! of e#idence a! the "re!ent la' on the !u $ect, ;e"u lic Act No% 1D5, a! amended, other'i!e *no'n a! the 0atent (a', "ro#ide! a !imilar "re!um"tion in ca!e! of infringement of "atented de!ign or utility model, thu!F

SEC. 60. Infringement. - Infringement of a design patent or of a patent for utility model shall consist in unauthorized copying of the patented design or utility model for the purpose of trade or industry in the article or product and in the making, using or selling of the article or product copying the patented design or utility model. Identity or substantial identity with the patented design or utility model shall constitute evidence of copying. (underscoring supplied) 7oreo#er, it !hould e noted that the re,uirement of Article GE to "ro#ide a di!"uta le "re!um"tion a""lie! only if 415 the "roduct o tained y the "atented "roce!! i! NEW or 4?5 there i! a !u !tantial li*elihood that the identical "roduct 'a! made y the "roce!! and the "roce!! o'ner ha! not een a le through rea!ona le effort to determine the "roce!! u!ed% Where either of the!e t'o provisos doe! not o tain, mem er! !hall e free to determine the a""ro"riate method of im"lementing the "ro#i!ion! of T;&02 'ithin their o'n internal !y!tem! and "roce!!e!% By and large, the argument! adduced in connection 'ith our di!"o!ition of the third i!!ue )) derogation of legi!lati#e "o'er ) 'ill a""ly to thi! fourth i!!ue al!o% 2uffice it to !ay that the reci"rocity clau!e more than $u!tifie! !uch intru!ion, if any actually e+i!t!% Be!ide!, Article GE doe! not contain an unrea!ona le urden, con!i!tent a! it i! 'ith due "roce!! and the conce"t of ad#er!arial di!"ute !ettlement inherent in our $udicial !y!tem% 2o too, !ince the 0hili""ine i! a !ignatory to mo!t international con#ention! on "atent!, trademar*! and co"yright!, the ad$u!tment in legi!lation and rule! of "rocedure 'ill not e !u !tantial%<5?= 8+'() I""5$? Concurrence Only in the WTO Agreement and Not in Other Documents Contained in the #inal Act

0etitioner! allege that the 2enate concurrence in the WTO Agreement and it! anne+e! )) ut not in the other document! referred to in the -inal Act, namely the 7ini!terial 1eclaration and 1eci!ion! and the 3nder!tanding on Commitment! in -inancial 2er#ice! )) i! defecti#e and in!ufficient and thu! con!titute! a u!e of di!cretion% They !u mit that !uch concurrence in the WTO Agreement alone i! fla'ed ecau!e it i! in effect a re$ection of the -inal Act, 'hich in turn 'a! the document !igned y 2ecretary Na#arro, in re"re!entation of the ;e"u lic u"on authority of the 0re!ident% They contend that the !econd letter of the 0re!ident to the 2enate <5G= 'hich enumerated 'hat con!titute! the -inal Act !hould ha#e een the !u $ect of concurrence of the 2enate% .A '+na, a=(, !ometime! called protocol de cl$ture, i! an in!trument 'hich record! the 'inding u" of the "roceeding! of a di"lomatic conference and u!ually include! a re"roduction of the te+t! of treatie!, con#ention!, recommendation! and other act! agreed u"on and !igned y the "leni"otentiarie! attending the conference%/<5E= &t i! not the treaty it!elf% &t i! rather a !ummary of the "roceeding! of a "rotracted conference 'hich may ha#e ta*en "lace o#er !e#eral year!% The te+t of the .-inal Act Em odying the ;e!ult! of the 3ruguay ;ound of 7ultilateral Trade Negotiation!/ i! contained in $u!t one "age<55= in >ol% & of the GD)#olume Uruguay Round of Multilateral Trade Negotiations% By !igning !aid -inal Act, 2ecretary Na#arro a! re"re!entati#e of the ;e"u lic of the 0hili""ine! undertoo*F "(a) to submit, as appropriate, the WTO Agreement for the consideration of their respective competent authorities with a view to seeking approval of the Agreement in accordance with their procedures; and (b) to adopt the Ministerial Declarations and Decisions." The a!!ailed 2enate ;e!olution No% 9B e+"re!!ed

concurrence in e+actly 'hat the -inal Act re,uired from it! !ignatorie!, namely, concurrence of the 2enate in the WTO Agreement% The 7ini!terial 1eclaration! and 1eci!ion! 'ere deemed ado"ted 'ithout need for ratification% They 'ere a""ro#ed y the mini!ter! y #irtue of Article MM>F 1 of 9ATT 'hich "ro#ide! that re"re!entati#e! of the mem er! can meet .to gi#e effect to tho!e "ro#i!ion! of thi! Agreement 'hich in#o*e $oint action, and generally 'ith a #ie' to facilitating the o"eration and furthering the o $ecti#e! of thi! Agreement%/<5D= The 3nder!tanding on Commitment! in -inancial 2er#ice! al!o a""ro#ed in 7arra*e!h doe! not a""ly to the 0hili""ine!% &t a""lie! only to tho!e ?B 7em er! 'hich .ha#e indicated in their re!"ecti#e !chedule! of commitment! on !tand!till, elimination of mono"oly, e+"an!ion of o"eration of e+i!ting financial !er#ice !u""lier!, tem"orary entry of "er!onnel, free tran!fer and "roce!!ing of information, and national treatment 'ith re!"ect to acce!! to "ayment, clearing !y!tem! and refinancing a#aila le in the normal cour!e of u!ine!!%/<5B= On the other hand, the WTO Agreement it!elf e+"re!!e! 'hat multilateral agreement! are deemed included a! it! integral "art!,<5A= a! follo'!F Article II Scope of the WTO 1. The WTO shall provide the common institutional framework for the conduct of trade relations among its Members in matters to the agreements and associated legal instruments included in the Annexes to this Agreement. 2. The Agreements and associated legal instruments included in Annexes 1, 2, and 3 (hereinafter referred to as Multilateral Agreements) are integral parts of this

Agreement, binding on all Members. 3. The Agreements and associated legal instruments included in Annex 4 (hereinafter referred to as Plurilateral Trade Agreements) are also part of this Agreement for those Members that have accepted them, and are binding on those Members. The Plurilateral Trade Agreements do not create either obligation or rights for Members that have not accepted them. 4. The General Agreement on Tariffs and Trade 1994 as specified in annex 1A (hereinafter referred to as GATT 1994) is legally distinct from the General Agreement on Tariffs and Trade, dated 30 October 1947, annexed to the Final Act adopted at the conclusion of the Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment, as subsequently rectified, amended or modified (hereinafter referred to as GATT 1947). &t !hould e added that the 2enate 'a! 'ell)a'are of 'hat it 'a! concurring in a! !ho'n y the mem er!I deli eration on Augu!t ?5, 199E% After reading the letter of 0re!ident ;amo! dated Augu!t 11, 199E,<59= the !enator! of the ;e"u lic minutely di!!ected 'hat the 2enate 'a! concurring in, a! follo'!F <DH= THE CHAIRMAN: Yes. Now, the question of the validity of the submission came up in the first day hearing of this Committee yesterday. Was the observation made by Senator Taada that what was submitted to the Senate was not the agreement on establishing the World Trade Organization by the final act of the Uruguay Round which is not the same as the agreement establishing the World Trade Organization? And on that basis, Senator Tolentino raised a point of order which, however, he agreed to withdraw upon understanding that his suggestion for an alternative solution at that time was acceptable. That suggestion was to treat the proceedings of the

Committee as being in the nature of briefings for Senators until the question of the submission could be clarified. And so, Secretary Romulo, in effect, is the President submitting a new... is he making a new submission which improves on the clarity of the first submission? MR. ROMULO: Mr. Chairman, to make sure that it is clear cut and there should be no misunderstanding, it was his intention to clarify all matters by giving this letter. THE CHAIRMAN: Thank you. Can this Committee hear from Senator Taada and later on Senator Tolentino since they were the ones that raised this question yesterday? Senator Taada, please. SEN. TAADA: Thank you, Mr. Chairman. Based on what Secretary Romulo has read, it would now clearly appear that what is being submitted to the Senate for ratification is not the Final Act of the Uruguay Round, but rather the Agreement on the World Trade Organization as well as the Ministerial Declarations and Decisions, and the Understanding and Commitments in Financial Services. I am now satisfied with the wording of the new submission of President Ramos. SEN. TAADA. . . . of President Ramos, Mr. Chairman. THE CHAIRMAN. Thank you, Senator Taada. Can we hear from Senator Tolentino? And after him Senator Neptali Gonzales and Senator Lina. SEN TOLENTINO, Mr. Chairman, I have not seen the new submission actually transmitted to us but I saw the draft of his

earlier, and I think it now complies with the provisions of the Constitution, and with the Final Act itself. The Constitution does not require us to ratify the Final Act. It requires us to ratify the Agreement which is now being submitted. The Final Act itself specifies what is going to be submitted to with the governments of the participants. In paragraph 2 of the Final Act, we read and I quote: By signing the present Final Act, the representatives agree: (a) to submit as appropriate the WTO Agreement for the consideration of the respective competent authorities with a view to seeking approval of the Agreement in accordance with their procedures. In other words, it is not the Final Act that was agreed to be submitted to the governments for ratification or acceptance as whatever their constitutional procedures may provide but it is the World Trade Organization Agreement. And if that is the one that is being submitted now, I think it satisfies both the Constitution and the Final Act itself. Thank you, Mr. Chairman. THE CHAIRMAN. Thank you, Senator Tolentino, May I call on Senator Gonzales. SEN. GONZALES. Mr. Chairman, my views on this matter are already a matter of record. And they had been adequately reflected in the journal of yesterdays session and I dont see any need for repeating the same. Now, I would consider the new submission as an act ex abudante cautela. THE CHAIRMAN. Thank you, Senator Gonzales. Senator Lina, do you want to make any comment on this? SEN. LINA. Mr. President, I agree with the observation just

made by Senator Gonzales out of the abundance of question. Then the new submission is, I believe, stating the obvious and therefore I have no further comment to make. E-+,o:5$ &n "raying for the nullification of the 0hili""ine ratification of the WTO Agreement, "etitioner! are in#o*ing thi! CourtI! con!titutionally im"o!ed duty .to determine 'hether or not there ha! een gra#e a u!e of di!cretion amounting to lac* or e+ce!! of $uri!diction/ on the "art of the 2enate in gi#ing it! concurrence therein #ia 2enate ;e!olution No% 9B% 0rocedurally, a 'rit of certiorari grounded on gra#e a u!e of di!cretion may e i!!ued y the Court under ;ule D5 of the ;ule! of Court 'hen it i! am"ly !ho'n that "etitioner! ha#e no other "lain, !"eedy and ade,uate remedy in the ordinary cour!e of la'% By gra#e a u!e of di!cretion i! meant !uch ca"riciou! and 'him!ical e+erci!e of $udgment a! i! e,ui#alent to lac* of $uri!diction%<D1= 7ere a u!e of di!cretion i! not enough% &t mu!t e grave a u!e of di!cretion a! 'hen the "o'er i! e+erci!ed in an ar itrary or de!"otic manner y rea!on of "a!!ion or "er!onal ho!tility, and mu!t e !o "atent and !o gro!! a! to amount to an e#a!ion of a "o!iti#e duty or to a #irtual refu!al to "erform the duty en$oined or to act at all in contem"lation of la'%<D?= -ailure on the "art of the "etitioner to !ho' gra#e a u!e of di!cretion 'ill re!ult in the di!mi!!al of the "etition%<DG= &n rendering thi! 1eci!ion, thi! Court ne#er forget! that the 2enate, 'ho!e act i! under re#ie', i! one of t'o !o#ereign hou!e! of Congre!! and i! thu! entitled to great re!"ect in it! action!% &t i! it!elf a con!titutional ody inde"endent and coordinate, and thu! it! action! are "re!umed regular and done in good faith% 3nle!! con#incing "roof and "er!ua!i#e argument! are "re!ented

to o#erthro' !uch "re!um"tion!, thi! Court 'ill re!ol#e e#ery dou t in it! fa#or% 3!ing the foregoing 'ell) acce"ted definition of gra#e a u!e of di!cretion and the "re!um"tion of regularity in the 2enateI! "roce!!e!, thi! Court cannot find any cogent rea!on to im"ute gra#e a u!e of di!cretion to the 2enateI! e+erci!e of it! "o'er of concurrence in the WTO Agreement granted it y 2ec% ?1 of Article >&& of the Con!titution%<DE= &t i! true, a! alleged y "etitioner!, that road con!titutional "rinci"le! re,uire the 2tate to de#elo" an inde"endent national economy effecti#ely controlled y -ili"ino!6 and to "rotect and@or "refer -ili"ino la or, "roduct!, dome!tic material! and locally "roduced good!% But it i! e,ually true that !uch "rinci"le! )) 'hile !er#ing a! $udicial and legi!lati#e guide! )) are not in them!el#e! !ource! of cau!e! of action% 7oreo#er, there are other e,ually fundamental con!titutional "rinci"le! relied u"on y the 2enate 'hich mandate the "ur!uit of a .trade "olicy that !er#e! the general 'elfare and utilize! all form! and arrangement! of e+change on the a!i! of e,uality and reci"rocity/ and the "romotion of indu!trie! .'hich are com"etiti#e in oth dome!tic and foreign mar*et!,/ there y $u!tifying it! acce"tance of !aid treaty% 2o too, the alleged im"airment of !o#ereignty in the e+erci!e of legi!lati#e and $udicial "o'er! i! alanced y the ado"tion of the generally acce"ted "rinci"le! of international la' a! "art of the la' of the land and the adherence of the Con!titution to the "olicy of coo"eration and amity 'ith all nation!% That the 2enate, after deli eration and #oting, #oluntarily and o#er'helmingly ga#e it! con!ent to the WTO Agreement there y ma*ing it .a "art of the la' of the land/ i! a legitimate e+erci!e of it! !o#ereign duty and "o'er% We find no ."atent and gro!!/ ar itrarine!! or de!"oti!m . y rea!on of "a!!ion or "er!onal ho!tility/ in !uch e+erci!e% &t i! not im"o!!i le to !urmi!e that thi!

Court, or at lea!t !ome of it! mem er!, may e#en agree 'ith "etitioner! that it i! more ad#antageou! to the national intere!t to !tri*e do'n 2enate ;e!olution No% 9B% But that i! no( a ,$:a, &$a"on to attri ute gra#e a u!e of di!cretion to the 2enate and to nullify it! deci!ion% To do !o 'ould con!titute gra#e a u!e in the e+erci!e of our o'n $udicial "o'er and duty% &neluda ly, 'hat the 2enate did 'a! a #alid e+erci!e of it! authority% A! to 'hether !uch e+erci!e 'a! 'i!e, eneficial or #ia le i! out!ide the realm of $udicial in,uiry and re#ie'% That i! a matter et'een the elected "olicy ma*er! and the "eo"le% A! to 'hether the nation !hould $oin the 'orld'ide march to'ard trade li eralization and economic glo alization i! a matter that our "eo"le !hould determine in electing their "olicy ma*er!% After all, the WTO Agreement allo'! 'ithdra'al of mem er!hi", !hould thi! e the "olitical de!ire of a mem er% The eminent futuri!t John Nai! itt, author of the e!t !eller Megatrends, "redict! an A!ian ;enai!!ance<D5= 'here .the Ea!t 'ill ecome the dominant region of the 'orld economically, "olitically and culturally in the ne+t century%/ 8e refer! to the .free mar*et/ e!"ou!ed y WTO a! the .cataly!t/ in thi! coming A!ian a!cendancy% There are at "re!ent a out G1 countrie! including China, ;u!!ia and 2audi Ara ia negotiating for mem er!hi" in the WTO% Not'ith!tanding o $ection! again!t "o!!i le limitation! on national !o#ereignty, the WTO remain! a! the only #ia le !tructure for multilateral trading and the #erita le forum for the de#elo"ment of international trade la'% The alternati#e to WTO i! i!olation, !tagnation, if not economic !elf)de!truction% 1uly enriched 'ith original mem er!hi", *eenly a'are of the ad#antage! and di!ad#antage! of glo alization 'ith it! on)line e+"erience, and endo'ed 'ith a #i!ion of the future, the 0hili""ine! no' !traddle! the cro!!road! of an international !trategy for economic "ro!"erity and !ta ility in the ne' millennium% (et the "eo"le, through their duly authorized

elected officer!, ma*e their free choice% W4ERE8ORE, the "etition i! )I'MI''*) for lac* of merit% !O ORDERED. Narvasa, +.$., Regalado, )avide, $r., Romero, ellosillo, Melo, !uno, Kapunan, Mendo(a, #rancisco, %ermosisima, $r., and Torres, $r., $$., concur% !adilla, and ,itug, $$., in the re!ult%

<1= &n Anne+ .A/ of her 7emorandum, dated Augu!t A, 199D, recei#ed

y thi! Court on Augu!t 1?, 199D, 0hili""ine Am a!!ador to the 3nited Nation!, World Trade Organization and other international organization! (ilia ;% Bauti!ta 4hereafter referred to a! .Bauti!ta 0a"er/5 !u mitted a .ED)year Chronology/ of 9ATT a! follo'!F .19EB T)$ %+&() o' GATT. On GH Octo er 19EB, the 9eneral Agreement on Tariff! and Trade 49ATT5 'a! !igned y ?G nation! at the 0alai! de! Nation! in 9ene#a% The Agreement contained tariff conce!!ion! agreed to in the fir!t multilateral trade negotiation! and a !et of rule! de!igned to "re#ent the!e conce!!ion! from eing fru!trated y re!tricti#e trade mea!ure!% The ?G founding contracting "artie! 'ere mem er! of the 0re"aratory Committee e!ta li!hed y the 3nited Nation! Economic and 2ocial Council in 19ED to draft the charter of the &nternational Trade Organization 4&TO5% The &TO 'a! en#i!aged a! the final leg of a triad of "o!t) War economic agencie! 4the other t'o 'ere the &nternational 7onetary -und and the &nternational Ban* for ;econ!truction ) later the World Ban*5% &n "arallel 'ith thi! ta!*, the Committee mem er! decided to negotiate tariff conce!!ion! among them!el#e!% -rom A"ril to Octo er 19EB, the "artici"ant! com"leted !ome 1?G negotiation! and e!ta li!hed ?H !chedule! containing the tariff reduction! and inding! 'hich ecame an

integral "art of 9ATT% The!e !chedule! re!ulting from the fir!t ;ound co#ered !ome E5,HHH tariff conce!!ion! and a out P1H illion in trade% 9ATT 'a! concei#ed a! an interim mea!ure that "ut into effect the commercial)"olicy "ro#i!ion! of the &TO% &n No#em er, delegation! from 5D countrie! met in 8a#ana, Cu a, to con!ider the &TO draft a! a 'hole% After long and difficult negotiation!, !ome 5G countrie! !igned the -inal Act authenticating the te+t of the 8a#ana Charter in 7arch 19EA% There 'a! no commitment, ho'e#er, from go#ernment! to ratification and, in the end, the &TO 'a! !till orn, lea#ing 9ATT a! the only international in!trument go#erning the conduct of 'orld trade% 19EA En(&y +n(o 'o&=$% On 1 January 19EA, 9ATT entered into force% The ?G founding mem er! 'ereF Au!tralia, Belgium, Brazil, Burma, Canada, Ceylon, Chile, China, Cu a, Czecho!lo#a*ia, -rance, &ndia, (e anon, (u+em urg, Netherland!, Ne' Qealand, Nor'ay, 0a*i!tan, 2outhern ;hode!ia, 2yria, 2outh Africa, 3nited :ingdom and 3nited 2tate!% The fir!t 2e!!ion of the contracting "artie! 'a! held from -e ruary to 7arch in 8a#ana, Cu a% The !ecretariat of the &nterim Commi!!ion for the &TO, 'hich !er#ed a! the ad hoc !ecretariat of 9ATT, mo#e from la*e 0lacid, Ne' Kor*, to 9ene#a% The Contracting 0artie! held their !econd !e!!ion in 9ene#a from Augu!t to 2e"tem er% !$=ond Ro5nd a( Ann$=y% 1uring the !econd ;ound of trade negotiation!, held from A"ril to Augu!t at Annecy, -rance, the contracting "artie! e+change !ome 5,HHH tariff conce!!ion% At their third 2e!!ion, they al!o dealt 'ith the acce!!ion of ten more countrie!% T)+&d Ro5nd A( To&B5ay% -rom 2e"tem er 195H to A"ril 1951, the contracting "artie! e+change !ome A,BHH tariff conce!!ion! in the Engli!h to'n, yielding tariff reduction of a out ?5 "er cent in relation to the 19EA le#el% -our

19E9

195H

more countrie! acceded to 9ATT% 1uring the fifth 2e!!ion of the Contracting 0artie!, the 3nited 2tate! indicated that the &TO Charter 'ould not e re)!u mitted to the 32 congre!!6 thi!, in effect, meant that &TO 'ould not come into o"eration% 195D 8o5&() Ro5nd a( G$n$6a % The fourth ;ound 'a! com"leted in 7ay and "roduce !ome P?%5 illion 'orth of tariff reduction!% At the eginning of the year, the 9ATT commercial "olicy cour!e for official! of de#elo"ing countrie! 'a! inaugurated% T)$ 4a%$&,$& R$-o&(. 9ATT "u li!hed Trend! in &nternational Trade in Octo er% :no'n a! the O8a erler ;e"ortO in honour of 0rofe!!or 9ottfried 8a erler, the chairman of the "anel of imminent economi!t, it "ro#ided initial guideline! for the 'or* of 9ATT% The Contracting 0artie! at their 1Gth 2e!!ion!, attended y 7ini!ter!, !u !e,uently e!ta li!hed G committee! in 9ATTF Committee & to con#ene a further tariff negotiating conference6 Committee && To re#ie' the agricultural "olicie! of mem er go#ernment! and Committee &&& to tac*le the "ro lem! facing de#elo"ing countrie! in their trade% The e!ta li!hment of the Euro"ean Economic Community during the "re#iou! year al!o demanded large !cale tariff negotiation under Article MM&> D of the 9eneral Agreement% T)$ D+,,on Ro5nd. The fifth ;ound o"ened in 2e"tem er and 'a! di#ided into t'o "ha!e!F the fir!t 'a! concerned 'ith EEC mem er! !tate! for the creation of a !ingle !chedule of conce!!ion! for the Community a!ed on it! Common E+ternal Tariff6 and the !econd 'a! a further general round of tariff negotiation!% Named in honor of 32 3nder)2ecretary of 2tate 1ougla! 1illon 'ho "ro"o!ed the negotiation!, the ;ound 'a! concluded in July 19D? and re!ulted in a out E,EHH tariff conce!!ion! co#ering PE%9 illion of trade% T)$ !)o&(9T$&# A&&an:$#$n( co#ering

195A

19DH

19D1

cotton te+tile! 'a! agreed a! an e+ce"tion to the 9ATT rule!% The arrangement "ermitted the negotiation of ,uota re!triction! affecting the e+"ort! of cotton)"roducing countrie!% &n 19D? the O2hort Term O Arrangement ecome the O(ong termO Arrangement, la!ting until 19BE 'hen the 7ultifi re Arrangement entered into force% 19DE T)$ 2$nn$dy Ro5nd. 7eeting at 7ini!terial (e#el, a Trade Negotiation! Committee formally o"ened the :ennedy ;ound in 7ay% &n June 19DB, the ;oundR! -inal Act 'a! !igned y !ome 5H "artici"ating countrie! 'hich together accounted for B5 "er cent of 'orld trade% -or the fir!t time, negotiation de"arted from "roduct) y)"roduct a""roach u!ed in the "re#iou! ;ound! to an acro!!)the) oard or linear method of cutting tariff! for indu!trial good!% The 'or*ing hy"othe!i! of a 5H "er cent target cut in tariff le#el! 'a! achie#ed in many area!% Conce!!ion! co#ered an e!timated total #alue of trade of a out PEH illion% 2e"arate agreement! 'ere reached on grain!, chemical "roduct! and a Code on Anti)1um"ing% A N$> )a-($&% The early 19DH! mar*ed the acce!!ion to the 9eneral Agreement of many ne'ly)inde"endent de#elo"ing countrie!% &n -e ruary, the Contracting 0artie!, meeting in a !"ecial !e!!ion, ado"ted the te+t of 0art &> on Trade and 1e#elo"ment% The additional cha"ter to the 9ATT re,uired de#elo"ed countrie! to accord high "riority to the reduction of trade arrier! to "roduct! of de#elo"ing countrie!% A committee on Trade and 1e#elo"ment 'a! e!ta li!hed to o#er!ee the functioning of the ne' 9ATT "ro#i!ion!% &n the "receding year, 9ATT had e!ta li!hed the &nternational Trade Center 4&TC5 to hel" de#elo"ing countrie! in trade "romotion and identification of "otential mar*et!% 2ince 19DA, the &TC had een $ointly o"erated y 9ATT and the 3N Conference on Trade and 1e#elo"ment 43NCTA15%

19D5

19BG

T)$ To@yo Ro5nd. The !e#enth ;ound 'a! launched y 7ini!ter! in 2e"tem er at the Ja"ane!e ca"ital% 2ome 99 countrie! "artici"ated in negotiating a com"rehen!i#e ody of agreement! co#ering oth tariff and non)tariff matter!% At the end of the ;ound in No#em er 19B9, "artici"ant! e+change tariff reduction and inding! 'hich co#ered more than PGHH illion of trade% A! a re!ult of the!e cut!, the 'eighted a#erage tariff on manufactured good! in the 'orldR! nine ma$or &ndu!trial 7ar*et! declined from B%H to E%B "er cent% Agreement! 'ere reached in the follo'ing area!6 !u !idie! and counter#ailing mea!ure!, technical arrier! to trade, im"ort licen!ing "rocedure!, go#ernment "rocurement, cu!tom! #aluation, a re#i!ed anti)dum"ing code, trade in o#ine meat, trade in daily "roduct! and trade in ci#il aircraft% The fir!t concrete re!ult of the ;ound 'a! the reduction of im"ort dutie! and other trade arrier! y indu!trial countrie! on tro"ical "roduct! e+"orted y de#elo"ing countrie!% On 1 January 19BE, the Arrangement ;egarding &nternational Trade in te+tile!, other'i!e *no'n a! the M5,(+'+%&$ A&&an:$#$n( 47-A5, entered into force% &t! !u"er!eded the arrangement that had een go#erning trade in cotton te+tile! !ince 19D1% The 7-A !ee*! to "romote the e+"an!ion and "rogre!!i#e li eralization of trade in te+tile "roduct 'hile at the !ame time a#oiding di!ru"ti#e effect! in indi#idual mar*et! in line! of "roduction% The 7-A 'a! e+tended in 19BA, 19A?, 19AD, 1991 and 199?% 7-A mem er! account for mo!t of the 'orld e+"ort! of te+tile! and clothing 'hich in 19AD amounted to 32P1?A illion% M+n+"($&+a, M$$(+n:. 7eeting for the fir!t time in nearly ten year!, the 9ATT 7ini!ter! in No#em er at 9ene#a reaffirmed the #alidity of 9ATT rule! for the conduct of international trade and committed them!el#e! to com ating "rotectioni!t "re!!ure!% They al!o e!ta li!hed a 'ide)ranging 'or* "rogramme for the 9ATT

19BE

19A?

'hich 'a! to laid do'n the ground 'or* for a ne' ;ound% 19AD T)$ U&5:5ay Ro5nd. The 9ATT Trade 7ini!ter! meeting at 0unta del E!te, 3ruguay, launched the eighth ;ound of Trade Negotiation! on ?H 2e"tem er% The 0unta del E!te, declaration!, 'hile re"re!enting a !ingle "olitical underta*ing, 'a! di#ided into t'o !ection% The -ir!t co#ered negotiation! on Trade in good! and the !econd initiated negotiation on trade in !er#ice!% &n the area of trade in good!, the 7ini!ter! committed them!el#e! to a O!tand!tillO on ne' trade mea!ure! incon!i!tent 'ith their 9ATT o ligation! and to a Oroll ac*O "rogramme aimed at "ha!ing out e+i!ting incon!i!tent mea!ure!% En#i!aged to la!t four year!, negotiation! !tarted in early -e ruary 19AB in the follo'ing area!F tariff!, non)tariff mea!ure!, tro"ical "roduct!, natural re!ource) a!ed "roduct!, te+tile! and clothing, agriculture, !u !idie!, !afeguard!, trade)related a!"ect! of intellectual "ro"erty right! including trade in counterfeit good!, in trade) related in#e!tment mea!ure!% The 'or* of other grou"! included a re#ie' of 9ATT article!, the 9ATT di!"ute) !ettlement "rocedure, the To*yo ;ound agreement!, a! 'ell a! functioning of the 9ATT !y!tem a! a 'hole% 199E CGATT 199DC i! the u"dated #er!ion of 9ATT 19EB and ta*e! into account the !u !tanti#e and in!titutional change! negotiated in the 3ruguay ;ound% 9ATT 199E i! an integral "art of the World Trade Organization e!ta li!hed on 1 January 1995% &t i! agreed that there e a one year tran!ition "eriod during 'hich certain 9ATT 19EB odie! and commitment! 'ould co)e+i!t 'ith tho!e of the World Trade Organization%O

<?= The -inal Act 'a! !igned

y re"re!entati#e! of 1?5 entitie!, namely Algeria, Angola, Antigua and Bar uda, Argentine ;e"u lic, Au!tralia, ;e"u lic of Au!tria, 2tate of Bahrain, 0eo"leI! ;e"u lic of Banglade!h, Bar ado!, The :ingdom of Belgium, Belize, ;e"u lic of Benin, Boli#ia, Bot!'ana, Brazil, Brunei 1aru!!alam, Bur*ina -a!o, Burundi, Cameroon, Canada, Central African ;e"u lic, Chad, Chile, 0eo"leI! ;e"u lic of China, Colom ia, Congo, Co!ta ;ica, ;e"u lic of Cote dI&#oire,

Cu a, Cy"ru!, Czech ;e"u lic, :ingdom of 1enmar*, Common'ealth of 1ominica, 1ominican ;e"u lic, Ara ;e"u lic of Egy"t, El 2al#ador, Euro"ean Communitie!, ;e"u lic of -i$i, -inland, -rench ;e"u lic, 9a one!e ;e"u lic, 9am ia, -ederal ;e"u lic of 9ermany, 9hana, 8ellenic ;e"u lic, 9renada, 9uatemala, ;e"u lic of 9uinea)Bi!!au, ;e"u lic of 9uyana, 8aiti, 8ondura!, 8ong :ong, 8ungary, &celand, &ndia, &ndone!ia, &reland, 2tate of &!rael, &talian ;e"u lic, Jamaica, Ja"an, :enya, :orea, 2tate of :u'ait, :ingdom of (e!otho, 0rinci"ality of (iechten!tein, 9rand 1uchy of (u+em ourg, 7acau, ;e"u lic of 7adaga!car, ;e"u lic of 7ala'i, 7alay!ia, ;e"u lic of 7aldi#e!, ;e"u lic of 7ali, ;e"u lic of 7alta, &!lamic ;e"u lic of 7auritania, ;e"u lic of 7auritiu!, 3nited 7e+ican 2tate!, :ingdom of 7orocco, ;e"u lic of 7ozam i,ue, 3nion of 7yanmar, ;e"u lic of Nami ia, :ingdom of the Netherland!, Ne' Qealand, Nicaragua, ;e"u lic of Niger, -ederal ;e"u lic of Nigeria, :ingdom of Nor'ay, &!lamic ;e"u lic of 0a*i!tan, 0araguay, 0eru, 0hili""ine!, 0oland, 0ortugue!e ;e"u lic, 2tate of Latar, ;omania, ;'ande!e ;e"u lic, 2aint :itt! and Ne#i!, 2aint (ucia, 2aint >incent and the 9renadine!, 2enegal, 2ierra (eone, 2inga"ore, 2lo#a* ;e"u lic, 2outh Africa, :ingdom of 2"ain, 1emocratic 2ociali!t ;e"u lic of 2ri (an*a, ;e"u lic of 2urinam, :ingdom of 2'aziland, :ingdom of 2'eden, 2'i!! Confederation, 3nited ;e"u lic of Tanzania, :ingdom of Thailand, Togole!e ;e"u lic, ;e"u lic of Trinidad and To ago, Tuni!ia, Tur*ey, 3ganda, 3nited Ara Emirate!, 3nited :ingdom of 9reat Britain and Northern &reland, 3nited 2tate! of America, Ea!tern ;e"u lic of 3ruguay, >enezuela, ;e"u lic of Qaire, ;e"u lic of Qam ia, ;e"u lic of Qim a 'e6 !ee ""% D) ?5, >ol% 1, 3ruguay ;ound of 7ultilateral Trade Negotiation!%
<G= 11 Augu!t 199E

The 8onora le 7em er! 2enate Through 2enate 0re!ident Edgardo Angara 7anila (adie! and 9entlemenF & ha#e the honor to for'ard here'ith an authenticated co"y of the 3ruguay ;ound -inal Act !igned y 1e"artment of Trade and &ndu!try 2ecretary ;izalino 2% Na#arro for the 0hili""ine! on 15 A"ril 199E in 7arra*e!h, 7orocco%

The 3ruguay ;ound -inal Act aim! to li eralize and e+"and 'orld trade and !trengthen the interrelation!hi" et'een trade and economic "olicie! affecting gro'th and de#elo"ment% The -inal Act 'ill im"ro#e 0hili""ine acce!! to foreign mar*et!, e!"ecially it! ma$or trading "artner! through the reduction of tariff! on it! e+"ort! "articularly agricultural and indu!trial "roduct!% The!e conce!!ion! may e a#ailed of y the 0hili""ine!, only if it i! a mem er of the World Trade Organization% By 9ATT e!timate!, the 0hili""ine! can ac,uire additional e+"ort re#enue! from P?%? to P?%B Billion annually under 3ruguay ;ound% Thi! 'ill e on to" of the normal increa!e in e+"ort! that the 0hili""ine! may e+"erience% The -inal Act 'ill al!o o"en u" ne' o""ortunitie! for the !er#ice! !ector in !uch area! a! the mo#ement of "er!onnel, 4e%g% "rofe!!ional !er#ice! and con!truction !er#ice!5, cro!!) order !u""ly 4e%g% com"uter)related !er#ice!5, con!um"tion a road 4e%g% touri!m, con#ention !er#ice!, etc%5 and commercial "re!ence% The clarified and im"ro#ed rule! and di!ci"line! on anti)dum"ing and counter#ailing mea!ure! 'ill al!o enefit 0hili""ine e+"orter! y reducing the co!t! and uncertainty a!!ociated 'ith e+"orting 'hile at the !ame time "ro#iding a mean! for dome!tic indu!trie! to !afeguard them!el#e! again!t unfair im"ort!% (i*e'i!e, the "ro#i!ion of ade,uate "rotection for intellectual "ro"erty right! i! e+"ected to attract more in#e!tment! into the country and to ma*e it le!! #ulnera le to unilateral action! y it! trading "artner! 4e%g% 2ec% GH1 of the 3nited 2tate!I Omni u! Trade (a'5% &n #ie' of the foregoing, the 3ruguay ;ound -inal Act i! here y !u mitted to the 2enate for it! concurrence "ur!uant to 2ection ?1, Article >&& of the Con!titution% A draft of a "ro"o!ed ;e!olution gi#ing it! concurrence to the afore!aid Agreement i! enclo!ed% >ery truly your!, 4291%5 -&1E( >% ;A7O2
<E= 11 Augu!t 199E

The 8onora le 7em er! 2enate Through 2enate 0re!ident Edgardo Angara

7anila (adie! and 9entlemenF & ha#e the honor to for'ard here'ith an authenticated co"y of the 3ruguay ;ound -inal Act !igned y 1e"artment of Trade and &ndu!try 2ecretary ;izalino 2% Na#arro for the 0hili""ine! on 1G A"ril 199E in 7arra*ech 4!ic5, 7orocco% 7em er! of the trade negotiation! committee, 'hich included the 0hili""ine!, agreed that the Agreement E!ta li!hing the World Trade Organization, the 7ini!terial 1eclaration! and 1eci!ion!, and the 3nder!tanding on Commitment! in -inancial 2er#ice! em ody the re!ult! of their negotiation! and form an integral "art of the 3ruguay ;ound -inal Act% By !igning the 3ruguay ;ound -inal Act, the 0hili""ine!, through 2ecretary Na#arro, agreedF 4a5 To !u mit the Agreement E!ta li!hing the World Trade Organization to the 2enate for it! concurrence "ur!uant to 2ection ?1, Article >&& of the Con!titution6 and

4 5 To ado"t the 7ini!terial 1eclaration! and 1eci!ion!% The 3ruguay ;ound -inal Act aim! to li eralize and e+"and 'orld trade and !trengthen the interrelation!hi" et'een trade and economic "olicie! affecting gro'th and de#elo"ment% The -inal Act 'ill im"ro#e 0hili""ine acce!! to foreign mar*et!, e!"ecially it! ma$or trading "artner! through the reduction of tariff! on it! e+"ort! "articularly agricultural and indu!trial "roduct!% The!e conce!!ion! may e a#ailed of y the 0hili""ine!, only if it i! a mem er of the World Trade Organization% By 9ATT e!timate!, the 0hili""ine! can ac,uire additional e+"ort re#enue! from P?%? to P?%B Billion annually under 3ruguay ;ound% Thi! 'ill e on to" of the normal increa!e in the e+"ort! that the 0hili""ine! may e+"erience% The -inal Act 'ill al!o o"en u" ne' o""ortunitie! for the !er#ice! !ector in !uch area! a! the mo#ement of "er!onnel, 4e%g%, "rofe!!ional !er#ice! and con!truction !er#ice!5, cro!!) order !u""ly 4e%g%, com"uter)related !er#ice!5, con!um"tion a road 4e%g%, touri!m, con#ention !er#ice!, etc%5 and commercial "re!ence% The clarified and im"ro#ed rule! and di!ci"line! on anti)dum"ing and counter#ailing mea!ure! 'ill al!o enefit 0hili""ine e+"orter! y reducing the co!t! and uncertainty

a!!ociated 'ith e+"orting 'hile at the !ame time "ro#iding a mean! for dome!tic indu!trie! to !afeguard them!el#e! again!t unfair im"ort!% (i*e'i!e, the "ro#i!ion of ade,uate "rotection for intellectual "ro"erty right! i! e+"ected to attract more in#e!tment! into the country and to ma*e it a le!! #ulnera le to unilateral action! y it! trading "artner! 4e%g%, 2ec% GH1 of the 3nited 2tate! Omni u! Trade (a'5% &n #ie' of the foregoing, the 3ruguay ;ound -inal Act, the Agreement E!ta li!hing the World Trade Organization, the 7ini!terial 1eclaration! and 1eci!ion!, and the 3nder!tanding on Commitment! in -inancial 2er#ice!, a! em odied in the 3ruguay ;ound -inal Act and forming and integral "art thereof are here y !u mitted to the 2enate for it! concurrence "ur!uant to 2ection ?1, Article >&& of the Con!titution% A draft of a "ro"o!ed ;e!olution gi#ing it! concurrence to the afore!aid Agreement i! enclo!ed% >ery truly your!, 4291%5 -&1E( >% ;A7O2
<5= 1ecem er 9, 199E

8ON% E19A;1O J% AN9A;A 2enate 0re!ident 2enate, 7anila 1ear 2enate 0re!ident AngaraF 0ur!uant to the "ro#i!ion! of 2ec% ?D 4?5 Article >& of the Con!titution, & here y certify to the nece!!ity of the immediate ado"tion of 0%2% 1HAG, entitledF .CONC3;;&N9 &N T8E ;AT&-&CAT&ON O- T8E A9;EE7ENT E2TAB(&28&N9 T8E WO;(1 T;A1E O;9AN&QAT&ON/ to meet a "u lic emergency con!i!ting of the need for immediate mem er!hi" in the WTO in order to a!!ure the enefit! to the 0hili""ine economy ari!ing from !uch mem er!hi"% >ery truly your!, 4291%5 -&1E( >% ;A7O2
<D= Attached a! Anne+ A, 0etition6 rollo, "% 5?% 0%2% 1HAG i! the

forerunner of a!!ailed 2enate ;e!olution No% 9B% &t 'a! "re"ared y the Committee of the Whole on the 9eneral Agreement on Tariff! and Trade chaired y 2en% Bla! -% O"le and co)chaired y 2en% 9loria 7aca"agal)Arroyo6 !ee Anne+ C, Com"liance of "etitioner! dated January ?A, 199B%
<B= The 0hili""ine! i! thu! con!idered an original or founding mem er of

WTO, 'hich a! of July ?D, 199D had 1?G mem er! a! follo'!F Antigua and Bar uda, Argentina, Au!tralia, Au!tria, Bahrain, Banglade!h, Bar ado!, Belgium, Belize, Benin, Boli#ia, Bot!'ana, Brazil, Brunei 1aru!!alam, Bur*ina -a!o, Burundi, Cameroon, Canada, Central African ;e"u lic, Chili, Colom ia, Co!ta ;ica, Cote dI&#oire, Cu a, Cy"ru!, Czech ;e"u lic, 1enmar*, 1$i outi, 1ominica, 1ominican ;e"u lic, Ecuador, Egy"t, El 2al#ador, Euro"ean Community, -i$i, -inland, -rance, 9a on, 9ermany, 9hana, 9reece, 9renada, 9uatemala, 9uinea, 9uinea Bi!!au, 9uyana, 8aiti, 8ondura!, 8ong*ong, 8ungary, &celand, &ndia, &ndone!ia, &reland, &!rael, &taly, Jamaica, Ja"an, :enya, :orea, :u'ait, (e!otho, (iechten!tein, (u+em ourg, 7acau, 7adaga!car, 7ala'i, 7alay!ia, 7aldi#e!, 7ali, 7alta, 7auritania, 7auritiu!, 7e+ico, 7orocco, 7ozam i,ue, 7yanmar, Nami ia, Netherland! )) for the :ingdom in Euro"e and for the Netherland! Antille!, Ne' Qealand, Nicaragua, Nigeria, Nor'ay, 0a*i!tan, 0a"ua Ne' 9uinea, 0araguay, 0eru, 0hili""ine!, 0oland, 0ortugal, Latar, ;omania, ;'anda, 2aint :itt! and Ne#i!, 2aint (ucia, 2aint >incent S the 9renadine!, 2enegal, 2ierra (eone, 2inga"ore, 2lo#a* ;e"u lic, 2lo#enia, 2olomon &!land!, 2outh Africa, 2"ain, 2ri (an*a, 2urinam, 2'aziland, 2'eden, 2'itzerland, Tanzania, Thailand, Togo, Trinidad and To ago, Tuni!ia, Tur*ey, 3ganda, 3nited Ara Emirate!, 3nited :ingdom, 3nited 2tate!, 3ruguay, >enezuela, Qam ia, and Qim a 'e% 2ee Anne+ A, Bauti!ta 0a"er, infra%
<A= 0age D6 rollo, "% ?D1% <9= &n com"liance, Am a!!ador Bauti!ta !u mitted to the Court on

Augu!t 1?, 199D, a 7emorandum 4the .Bauti!ta 0a"er/5 con!i!ting of 5D "age! e+cluding anne+e!% Thi! i! the !ame document mentioned in footnote no% 1%
<1H= 7emorandum for ;e!"ondent!, "% 1G6 rollo, "% ?DA% <11= Cf% :ilo! ayan, &ncor"orated vs. 7orato, ?ED 2C;A 5EH, July 1B,

1995 for a di!cu!!ion on locus standi. 2ee al!o the Concurring O"inion of 7r% Ju!tice >icente >% 7endoza in Tatad vs. 9arcia, Jr%, ?EG 2C;A EBG, A"ril D, 1995, a! 'ell a! :ilu!ang 7ayo 3no (a or Center vs. 9arcia, Jr%, ?G9 2C;A GAD, E1E,

1ecem er ?G, 199E%

<1?= A,uino, Jr% vs. 0once Enrile, 59 2C;A 1AG, 19D, 2e"tem er 1B,

19BE, cited in Bondoc vs. 0ineda, ?H1 2C;A B9?, B95, 2e"tem er ?D, 1991%
<1G= 9uingona, Jr. vs. 9onzale!, ?19 2C;A G?D, GGB, 7arch 1, 199G% <1E= 2ee Tanada and 7aca"agal vs. Cuenco, et al., 1HG 0hil% 1H51 for a

di!cu!!ion on the !co"e of ."olitical ,ue!tion%/

<15= 2ection 1, Article >&&&, 4"ar% ?5% <1D= &n a "ri#ilege !"eech on 7ay 1B, 199G, entitled .2u"reme Court ))

0otential TyrantC/ 2enator Arturo Tolentino concede! that thi! ne' "ro#i!ion gi#e! the 2u"reme Court a duty .to intrude into the $uri!diction of the Congre!! or the 0re!ident%/
<1B= & ;ecord of the Con!titutional Commi!!ion EGD% <1A= Cf% 1aza vs. 2ing!on, 1AH 2C;A E9D, 1ecem er ?1, 19A9% <19= 7emorandum for 0etitioner!, ""% 1E)1D6 rollo, ""% ?HE)?HD% <?H= 0ar% E, Article M>&, WTO Agreement, 3ruguay ;ound of 7ultilateral

Trade Negotiation!, >ol% 1, "% 1ED%

<?1= Al!o entitled .1eclaration of 0rinci"le!%/ The nomenclature in the

19BG Charter i! identical 'ith that in the 19ABI!%

<??= 0hili""ine 0olitical (a', 19D? Ed%, "% 11D% <?G= Berna!, T-e +onstitution of t-e !-ilippines. / +ommentary , >ol% &&,

19AA Ed%, "% ?% &n the #ery recent ca!e of 7anila 0rince 8otel vs. 92&2, 9%;% No% 1??15D, -e ruary G, 199B, "% A, it 'a! held that .A "ro#i!ion 'hich lay! do'n a general "rinci"le, !uch a! tho!e found in Art% && of the 19AB Con!titution, i! u!ually not !elf)e+ecuting%/
<?E= ?ED 2C;A 5EH, 5DE, July 1B, 1995%

2ecretary of -inance, 9%;% No% ca!e!, Augu!t ?5, 1995%

<?5= 19B 2C;A 5?, DA, 7ay 1E, 1991% <?D= ??E 2C;A B9?, A1B, July GH, 199G% <?B= 2ec% 1H, Article M&&% <?A= 2ec% 1?, Article M&&% <?9= 2ec% 19, Art% &&% <GH= 2ec% 1G, Art% M&&%

2ee al!o Tolentino vs% 115E55 and con!olidated

<G1= 9%;% No% 1??15D, -e ruary G, 199B, ""% 1G)1E% <G?= 2ec% 1, Art% M&&% <GG= Bauti!ta 0a"er, "% 19% <GE= 0ream le, WTO Agreement "% 1GB, >ol% 1, Uruguay Round of

Multilateral Trade Negotiations% 3nder!coring !u""lied%

<G5= 2ec% ) 19, Article &&, Con!titution% <GD= &&& ;ecord! of the Con!titutional Commi!!ion ?5?% <GB= 2ec% 1G, Article M&&, Con!titution% <GA= Ju!tice &!agani A% Cruz, !-ilippine !olitical 0aw, 1995 Ed%, "% 1G,

,uoting hi! o'n article entitled, .A Luinte!!ential Con!titution/ earlier "u li!hed in the 'an eda 0aw $ournal, A"ril 19B?6 under!coring !u""lied%
<G9= 0ar% E, Article M>& 47i!cellaneou! 0ro#i!ion!5, WTO Agreement,

"%1ED, >ol% 1, Negotiations.

Uruguay

Round

of

Multilateral

Trade

<EH= 7emorandum for the 0etitioner!, "% ?96 rollo, "% ?19% <E1= 2ec% ?E, Article >&, Con!titution% <E?= 2u !ection 4?5, 2ec% ?A, Article, >& Con!titution% <EG= 2ec% ?, Article &&, Con!titution% <EE= Cruz, !-ilippine !olitical 0aw, 1995 Ed%, "% 55% <E5= 2alonga and Ka", op cit GH5% <ED= 2alonga, op. cit%, "% ?AB% <EB= Luoted in 0ara! and 0ara!, Jr%, &nternational (a' and World

0olitic!, 199E Ed%, "% 1BA% EB)A ;eagan vs. Commi!!ion of &nternal ;e#enue, GH 2C;A 9DA, 9BG, 1ecem er ?B, 19D9% <EA= Tre ilcoc* and 8o'!e% The ;egulation of &nternational Trade, "% 1E, (ondon, 1995, cited on "% 55)5D, Bauti!ta 0a"er%
<E9= 3ruguay ;ound of 7ultilateral Trade Negotiation!, >ol% G1, "%

?5EE5%
<5H= &tem 5, 2ec% 5, Article >&&&, Con!titution% <51= 3ruguay ;ound of 7ultilateral Trade Negotiation!, >ol% G1, "%

?5EE5%

<5?= Bauti!ta 0a"er, "% 1G% <5G= 2ee footnote G of the te+t of thi! letter% <5E= 2alonga and Ka", op cit%, ""% ?A9)?9H% <55= The full te+t, 'ithout the !ignature!, of the -inal Act i! a! follo'!F

.8+na, A=( E#%ody+n: ()$ R$"5,(" o' ()$ U&5:5ay Ro5nd o' M5,(+,a($&a, T&ad$ N$:o(+a(+on" 1% 8a#ing met in order to conclude the 3ruguay ;ound of 7ultilateral Trade Negotiation!, re"re!entati#e! of the go#ernment! and of the Euro"ean Communitie!, mem er! of the Trade Negotiation! Committee, agree that the Agreement E!ta li!hing the World Trade Organization 4referred to in the -inal Act a! the .WTO Agreement/5, the 7ini!terial 1eclaration! and 1eci!ion!, and the 3nder!tanding on Commitment! in -inancial 2er#ice!, a! anne+ed hereto, em ody the re!ult! of their negotiation! and form an integral "art of thi! -inal Act% ?% By !igning to the "re!ent -inal Act, the re"re!entati#e! agree% .4a5 to !u mit, a! a""ro"riate, the WTO Agreement for the con!ideration of their re!"ecti#e com"etent authoritie! 'ith a #ie' to !ee*ing a""ro#al of the Agreement in accordance 'ith their "rocedure!6 and 4 5 to ado"t the 7ini!terial 1eclaration! and 1eci!ion!%/ G% The re"re!entati#e! agree on the de!ira ility of acce"tance of the WTO Agreement y all "artici"ant! in the 3ruguay ;ound of 7ultilateral Trade Negotiation! 4hereinafter referred to a! ."artici"ant!/5 'ith a #ie' to it! entry into force y 1 January 1995, or a! early a! "o!!i le thereafter% Not later than late 199E, 7ini!ter! 'ill meet, in accordance 'ith the final "aragra"h of the 0unta del E!te 7ini!terial 1eclaration!, to decide on the international im"lementation of the re!ult!, including the timing of their entry into force% E% The re"re!entati#e! agree that the WTO Agreement !hall e o"ened for acce"tance a! a 'hole, y !ignature or other'i!e, y all "artici"ant! "ur!uant to Article M&> thereof% The acce"tance and entry into force of a 0lurilateral Trade Agreement included in Anne+ E of the WTO Agreement !hall e go#erned y the "ro#i!ion! of that 0lurilateral Trade Agreement% 5% Before acce"ting the WTO Agreement, "artici"ant! 'hich are not contracting "artie! to the 9eneral Agreement on Tariff! and Trade mu!t fir!t ha#e concluded negotiation! for their acce!!ion to the 9eneral Agreement and ecome contracting "artie! thereto% -or "artici"ant! 'hich are not contracting "artie! to the general Agreement a! of the date of the -inal Act, the 2chedule! are not definiti#e and !hall e !u !e,uently com"leted for the "ur"o!e of their acce!!ion to the 9eneral

Agreement and acce"tance of the WTO Agreement% D% Thi! -inal Act and the Te+t! anne+ed hereto !hall e de"o!ited 'ith the 1irector)9eneral to the CONT;ACT&N9 0A;T&E2 to the 9eneral Agreement on Tariff! and Trade 'ho !hall "rom"tly furni!h to each "artici"ant a certified co"y thereof% 1ONE at 7arra*e!h thi! fifteenth day of A"ril One thou!and nine hundred and ninety)four, in a !ingle co"y, in the Engli!h, -rench and 2"ani!h language!, each te+t eing authentic%O
<5D= Bauti!ta 0a"er, "% 1D% <5B= Bauti!ta 0a"er, "% 1D% <5A= 3ruguay ;ound of 7ultilateral Trade Negotiation!, >ol% &, ""% 1GB)

1GA%
<59= 2ee footnote G for com"lete te+t% <DH= Ta*en from ""% DG)A5, .;e!"ondent/ 7emorandum% <D1= Qarate vs. Olegario, 9%;% No% 9HD55, Octo er B, 199D% <D?= 2an 2e a!tian College vs. Court of A""eal!, 19B 2C;A 1GA, 1EE,

7ay 15, 19916 Commi!!ioner of &nternal ;e#enue vs. Court of Ta+ A""eal!, 195 2C;A EEE, E5A 7arch ?H, 19916 2imon vs. Ci#il 2er#ice Commi!!ion, ?15 2C;A E1H, No#em er 5, 199?6 Bu!tamante vs. Commi!!ioner on Audit, ?1D 2C;A 1GE, 1GD, No#em er ?B, 199?%
<DG= 0arede! vs. Ci#il 2er#ice Commi!!ion, 19? 2C;A AE, 9E,

1ecem er E, 199H%
<DE= .2ec% ?1% No treaty or international agreement !hall

effecti#e unle!! concurred in 7em er! of the 2enate%/

e #alid and y at lea!t t'o)third! of all the

<D5= Reader1s )igest, 1ecem er 199D i!!ue, "% ?A%

Tanada vs Angara, 272 SCRA 18, May 2, 1997

Facts : This is a petition seeking to nullify the Philippine ratification of the World Trade Organization (WTO) Agreement. Petitioners question the concurrence of herein respondents acting in their capacities as Senators ia signing the said agreement. The WTO opens access to foreign markets! especially its ma"or trading partners! through the reduction of tariffs on its e#ports! particularly agricultural and industrial products. Thus! pro ides ne$ opportunities for the ser ice sector cost and uncertainty associated $ith e#porting and more in estment in the country. These are the predicted %enefits as reflected in the agreement and as ie$ed %y the signatory Senators! a &free market' espoused %y WTO. Petitioners on the other hand ie$ed the WTO agreement as one that limits! restricts and impair Philippine economic so ereignty and legislati e po$er. That the (ilipino (irst policy of the )onstitution $as taken for granted as it gi es foreign trading inter ention. Issue : Whether or not there has %een a gra e a%use of discretion amounting to lack or e#cess of "urisdiction on the part of the Senate in gi ing its concurrence of the said WTO agreement. Held: *n its +eclaration of Principles and state policies! the )onstitution &adopts the generally accepted principles of international la$ as part of the la$ of the land! and adheres to the policy of peace! equality! "ustice! freedom! cooperation and amity ! $ith all nations. ,y the doctrine of incorporation! the country is %ound %y generally accepted principles of international la$! $hich are considered automatically part of our o$n la$s. Pacta sunt ser anda - international agreements must %e performed in good faith. A treaty is not a mere moral o%ligation %ut creates a legally %inding o%ligation on the parties. Through WTO the so ereignty of the state cannot in fact and reality %e considered as a%solute %ecause it is a regulation of commercial relations among nations. Such as $hen Philippines "oined the .nited /ations (./) it consented to restrict its so ereignty right under the &concept of so ereignty as autolimitation.' What Senate did $as a alid e#ercise of authority. As to determine $hether such e#ercise is $ise! %eneficial or ia%le is outside the realm of "udicial inquiry and re ie$. The act of signing the said agreement is not a legislati e restriction as WTO allo$s $ithdra$al of mem%ership should this %e the political desire of a mem%er. Also! it should not %e ie$ed as a limitation of economic so ereignty. WTO remains as the only ia%le structure for multilateral trading and the erita%le forum for the de elopment of international trade la$. *ts alternati e is isolation! stagnation if not economic self0 destruction. Thus! the people %e allo$ed! through their duly elected officers! make their free choice. Petition is +*S1*SS2+ for lack of merit.