Tañada v. Angara

G.R. No. 118295 · 1997-05-02 · J. PANGANIBAN, J.: · Primary: Political; Secondary: Commercial, International Law
NEW DOCTRINE

Facts

1. The Antecedents: The case concerns the Philippines' membership in the World Trade Organization (WTO). Petitioners, including senators, representatives, taxpayers, and non-governmental organizations, challenged the constitutionality of the Philippines' ratification of the Agreement Establishing the World Trade Organization. They argued that the WTO Agreement violated the Philippine Constitution's mandate to develop a self-reliant and independent national economy effectively controlled by Filipinos, and to give preference to qualified Filipinos, domestic materials, and locally produced goods. 2. Procedural History: The Agreement Establishing the World Trade Organization was signed by the Philippine Secretary of Trade and Industry on April 15, 1994. The President of the Philippines submitted the Final Act of the Uruguay Round, including the WTO Agreement, to the Senate for concurrence on August 11, 1994. After deliberations, the Philippine Senate adopted Resolution No. 97 on December 14, 1994, concurring in the ratification of the WTO Agreement. The President then signed the Instrument of Ratification on December 16, 1994. Subsequently, the present petition for certiorari, prohibition, and mandamus was filed on December 29, 1994, challenging the Senate's concurrence. 3. The Petition: The petitioners filed a petition for certiorari, prohibition, and mandamus under Rule 65 of the Rules of Court. They sought to nullify the Philippine Senate's concurrence in the ratification of the WTO Agreement, arguing that it violated specific provisions of the 1987 Philippine Constitution, particularly those related to economic nationalism and the development of a self-reliant economy. They also contended that the WTO Agreement unduly limited or impaired the legislative and judicial powers of the Philippines. The petition prayed for the nullification of Senate Resolution No. 97 and the prohibition of the implementation and enforcement of the WTO Agreement.

Issue(s)

Whether the petition presents a political question or is otherwise not justiciable. 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. Whether the provisions of the Agreement Establishing the World Trade Organization contravene the provisions of Sec. 19, Article II, and Secs. 10 and 12, all of the 1987 Philippine Constitution. Whether provisions of the Agreement Establishing the World Trade Organization unduly limit, restrict and impair Philippine sovereignty, specifically the legislative power. Whether provisions of the Agreement Establishing the World Trade Organization interfere with the exercise of judicial power. 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. 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.

Ruling

The petition is DISMISSED for lack of merit. The Supreme Court held that the concurrence of the Senate in the ratification of the WTO Agreement was a valid exercise of its constitutional power and did not constitute grave abuse of discretion. The Court found no constitutional prohibition against the Philippines joining the WTO and participating in global trade liberalization.

Ratio Decidendi

On the Justiciability of the Controversy: The Court affirmed its jurisdiction, stating that when an act of the legislative branch is alleged to have infringed the Constitution, it becomes the duty of the judiciary to settle the dispute. The petition raised justiciable issues concerning the interpretation and application of constitutional provisions and alleged grave abuse of discretion, which fall within the Court's power under Rule 65 of the Rules of Court. The Court emphasized that it would not review the wisdom of the policy decision but only the alleged grave abuse of discretion in the Senate's concurrence. On Estoppel: There was no specific ratio provided regarding estoppel in the original text. Therefore, this section will address the general principles of trade liberalization. On Economic Nationalism vs. Trade Liberalization: The Court clarified that Article II provisions are generally not self-executing and serve as guides for legislation. While Article XII mandates preference for Filipinos, it must be read with other provisions promoting a trade policy based on equality and reciprocity and industries competitive in both domestic and foreign markets. The Constitution does not mandate economic seclusion but allows for international exchange on equal terms, protecting only against unfair foreign competition. The WTO Agreement itself provides mechanisms to protect developing countries, and the Philippines' participation does not inherently contravene the constitutional policy of economic nationalism. On Impairment of Legislative Power: The Court held that while treaties can limit sovereignty, such limitations are voluntarily agreed upon by the Philippines as a member of the international community. The Constitution adopts generally accepted principles of international law and adheres to policies of cooperation and amity. By ratifying treaties, the Philippines accepts reciprocal obligations, which may necessitate adjustments in domestic legislation. This is a recognized aspect of international law and treaty obligations, not an unconstitutional impairment of legislative power. On Interference with Judicial Power: The Court found no undue interference with judicial power. Article 34 of the TRIPS Agreement, concerning the burden of proof in process patent infringement cases, was found to be consistent with due process and the adversarial system. The existing Philippine Patent Law already provides similar presumptions, and any adjustments required would not be substantial, given the Philippines' signatory status to various international conventions on intellectual property. On Grave Abuse of Discretion in Senate Concurrence: The Court clarified that the Senate's concurrence was in the WTO Agreement itself, as required by the Constitution, not necessarily the entire Final Act. The Final Act is a record of proceedings, and the WTO Agreement, along with its annexes, constitutes the binding international agreement. The Senate was aware of what it was ratifying, and its concurrence was based on deliberations that clarified the scope of the submission. The understanding on commitments in financial services was also noted as not applicable to the Philippines. On the Sufficiency of Senate Concurrence: The Court clarified that the Senate's concurrence was in the WTO Agreement itself, as required by the Constitution, not necessarily the entire Final Act. The Final Act is a record of proceedings, and the WTO Agreement, along with its annexes, constitutes the binding international agreement. The Senate was aware of what it was ratifying, and its concurrence was based on deliberations that clarified the scope of the submission. The understanding on commitments in financial services was also noted as not applicable to the Philippines.

Main Doctrine

The Philippine Constitution does not prohibit participation in worldwide trade liberalization and economic globalization. The Constitution's provisions on economic nationalism should be read in conjunction with mandates for international cooperation and reciprocity. Joining the WTO does not constitute grave abuse of discretion by the Senate, as it is a valid exercise of its treaty concurrence power, balancing national interests with international obligations.

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