8epubllc of Lhe hlllpplnes

SUkLML CCUk1
Manlla
Ln 8AnC

G.k. No. 11829S May 2, 1997
WIG8Lk1C L. 1AADA and ANNA DCMINIUL CCSL1LNG, as members of the
h|||pp|ne Senate and as taxpayers, GkLGCkIC ANDCLANA and ICkLk AkkCC as
members of the nouse of kepresentat|ves and as taxpayers, NICANCk . LkLAS and
nCkACIC k. MCkALLS, both as taxpayers, CIVIL LI8Lk1ILS UNICN, NA1ICNAL
LCCNCMIC kC1LC1ICNISM ASSCCIA1ICN, CLN1Lk ICk AL1LkNA1IVL DLVLLCMLN1
INI1IA1IVLS, LIkAS-kAANG kAUNLAkAN ICUNDA1ICN, INC., nILIINL kUkAL
kLCCNS1kUC1ICN MCVLMLN1, DLMCkkA1IkCNG kILUSAN NG MAG8U8UkID NG
ILIINAS, INC., and nILIINL LASAN1 INS1I1U1L, |n representat|on of var|ous
taxpayers and as non-governmenta| organ|zat|ons, peLlLloners,
vs.
LDGAkDC ANGAkA, AL8Lk1C kCMULC, LL1ICIA kAMCS-SnAnANI, nLnLkSCN
ALVAkL2, AGAI1C AUINC, kCDCLIC 8IA2CN, NL1ALI GCN2ALLS, LkNLS1C
nLkkLkA, ICSL LINA, GLCkIA. MACAAGAL-AkkCC, CkLANDC MLkCADC, 8LAS
CLL, ICnN CSMLA, SAN1ANINA kASUL, kAMCN kLVILLA, kAUL kCCC, IkANCISCC
1A1AD and IkLDDIL WL88, |n the|r respect|ve capac|t|es as members of the h|||pp|ne
Senate who concurred |n the rat|f|cat|on by the res|dent of the h|||pp|nes of the
Agreement Lstab||sh|ng the Wor|d 1rade Crgan|zat|on, SALVADCk LNkIUL2, |n h|s
capac|ty as Secretary of 8udget and Management, CAkIDAD VALDLnULSA, |n her
capac|ty as Nat|ona| 1reasurer, kI2ALINC NAVAkkC, |n h|s capac|ty as Secretary of
1rade and Industry, kC8Lk1C SL8AS1IAN, |n h|s capac|ty as Secretary of Agr|cu|ture,
kC8Lk1C DL CCAMC, |n h|s capac|ty as Secretary of I|nance, kC8Lk1C kCMULC, |n
h|s capac|ty as Secretary of Iore|gn Affa|rs, and 1LCIIS1C 1. GUINGCNA, |n h|s
capac|ty as Lxecut|ve Secretary, respondenLs.

ANGANI8AN, !"#
1he emergence on !anuary 1, 1993 of Lhe World 1rade CrganlzaLlon, abeLLed by Lhe
membershlp LhereLo of Lhe vasL ma[orlLy of counLrles has revoluLlonlzed lnLernaLlonal
buslness and economlc relaLlons amongsL sLaLes. lL has lrreverslbly propelled Lhe world
Lowards Lrade llberallzaLlon and economlc globallzaLlon. LlberallzaLlon, globallzaLlon,
deregulaLlon and prlvaLlzaLlon, Lhe Lhlrd-mlllennlum buzz words, are usherlng ln a new
borderless world of buslness by sweeplng away as mere hlsLorlcal rellcs Lhe hereLofore
LradlLlonal modes of promoLlng and proLecLlng naLlonal economles llke Larlffs, exporL
subsldles, lmporL quoLas, quanLlLaLlve resLrlcLlons, Lax exempLlons and currency
conLrols. llndlng markeL nlches and becomlng Lhe besL ln speclflc lndusLrles ln a markeL-
drlven and exporL-orlenLed global scenarlo are replaclng age-old "beggar-Lhy-nelghbor"
pollcles LhaL unllaLerally proLecL weak and lnefflclenL domesLlc producers of goods and
servlces. ln Lhe words of eLer urucker, Lhe well-known managemenL guru, "lncreased
parLlclpaLlon ln Lhe world economy has become Lhe key Lo domesLlc economlc growLh
and prosperlLy."
8tlef nlstotlcol 8ockqtoooJ
1o hasLen worldwlde recovery from Lhe devasLaLlon wroughL by Lhe Second World War,
plans for Lhe esLabllshmenL of Lhree mulLllaLeral lnsLlLuLlons - lnsplred by LhaL grand
pollLlcal body, Lhe unlLed naLlons - were dlscussed aL uumbarLon Caks and 8reLLon
Woods. 1he fltst was Lhe World 8ank (W8) whlch was Lo address Lhe rehablllLaLlon and
reconsLrucLlon of war-ravaged and laLer developlng counLrles, Lhe secooJ, Lhe
lnLernaLlonal MoneLary lund (lMl) whlch was Lo deal wlLh currency problems, and
Lhe tbltJ, Lhe lnLernaLlonal 1rade CrganlzaLlon (l1C), whlch was Lo fosLer order and
predlcLablllLy ln world Lrade and Lo mlnlmlze unllaLeral proLecLlonlsL pollcles LhaL lnvlLe
challenge, even reLallaLlon, from oLher sLaLes. Powever, for a varleLy of reasons,
lncludlng lLs non-raLlflcaLlon by Lhe unlLed SLaLes, Lhe l1C, unllke Lhe lMl and W8, never
Look off. WhaL remalned was only CA11 - Lhe Ceneral AgreemenL on 1arlffs and 1rade.
CA11 was a collecLlon of LreaLles governlng access Lo Lhe economles of LreaLy adherenLs
wlLh no lnsLlLuLlonallzed body admlnlsLerlng Lhe agreemenLs or dependable sysLem of
dlspuLe seLLlemenL.
AfLer half a cenLury and several dlzzylng rounds of negoLlaLlons, prlnclpally Lhe kennedy
8ound, Lhe 1okyo 8ound and Lhe uruguay 8ound, Lhe world flnally gave blrLh Lo LhaL
admlnlsLerlng body - Lhe World 1rade CrganlzaLlon - wlLh Lhe slgnlng of Lhe "llnal
AcL" ln Marrakesh, Morocco and Lhe raLlflcaLlon of Lhe W1C AgreemenL by lLs
members.
1

Llke many oLher developlng counLrles, Lhe hlllpplnes [olned W1C as a foundlng
member wlLh Lhe goal, as arLlculaLed by resldenL lldel v. 8amos ln Lwo leLLers Lo Lhe
SenaLe (lofto), of lmprovlng "hlllpplne access Lo forelgn markeLs, especlally lLs ma[or
Lradlng parLners, Lhrough Lhe reducLlon of Larlffs on lLs exporLs, parLlcularly agrlculLural
and lndusLrlal producLs." 1he resldenL also saw ln Lhe W1C Lhe openlng of "new
opporLunlLles for Lhe servlces secLor . . . , (Lhe reducLlon of) cosLs and uncerLalnLy
assoclaLed wlLh exporLlng . . . , and (Lhe aLLracLlon of) more lnvesLmenLs lnLo Lhe
counLry." AlLhough Lhe Chlef LxecuLlve dld noL expressly menLlon lL ln hls leLLer, Lhe
hlllpplnes - and Lhls ls of speclal lnLeresL Lo Lhe legal professlon - wlll beneflL from
Lhe W1C sysLem of dlspuLe seLLlemenL by [udlclal ad[udlcaLlon Lhrough Lhe lndependenL
W1C seLLlemenL bodles called (1) ulspuLe SeLLlemenL anels and (2) AppellaLe 1rlbunal.
PereLofore, Lrade dlspuLes were seLLled malnly Lhrough negoLlaLlons where soluLlons
were arrlved aL frequenLly on Lhe basls of relaLlve bargalnlng sLrengLhs, and where
naLurally, weak and underdeveloped counLrles were aL a dlsadvanLage.
1be letltloo lo 8tlef
Argulng malnly (1) LhaL Lhe W1C requlres Lhe hlllpplnes "Lo place naLlonals and
producLs of member-counLrles on Lhe same fooLlng as llllplnos and local producLs" and
(2) LhaL Lhe W1C "lnLrudes, llmlLs and/or lmpalrs" Lhe consLlLuLlonal powers of boLh
Congress and Lhe Supreme CourL, Lhe lnsLanL peLlLlon before Lhls CourL assalls Lhe W1C
AgreemenL for vlolaLlng Lhe mandaLe of Lhe 1987 ConsLlLuLlon Lo "develop a self-rellanL
and lndependenL naLlonal economy effecLlvely conLrolled by llllplnos . . . (Lo) glve
preference Lo quallfled llllplnos (and Lo) promoLe Lhe preferenLlal use of llllplno labor,
domesLlc maLerlals and locally produced goods."
Slmply sLaLed, does Lhe hlllpplne ConsLlLuLlon prohlblL hlllpplne parLlclpaLlon ln
worldwlde Lrade llberallzaLlon and economlc globallzaLlon? uoes lL proscrlbe hlllpplne
lnLegraLlon lnLo a global economy LhaL ls llberallzed, deregulaLed and prlvaLlzed? 1hese
are Lhe maln quesLlons ralsed ln Lhls peLlLlon for cettlototl, prohlblLlon
andmooJomos under 8ule 63 of Lhe 8ules of CourL praylng (1) for Lhe nulllflcaLlon, on
consLlLuLlonal grounds, of Lhe concurrence of Lhe hlllpplne SenaLe ln Lhe raLlflcaLlon by
Lhe resldenL of Lhe hlllpplnes of Lhe AgreemenL LsLabllshlng Lhe World 1rade
CrganlzaLlon (W1C AgreemenL, for brevlLy) and (2) for Lhe prohlblLlon of lLs
lmplemenLaLlon and enforcemenL Lhrough Lhe release and uLlllzaLlon of publlc funds,
Lhe asslgnmenL of publlc offlclals and employees, as well as Lhe use of governmenL
properLles and resources by respondenL-heads of varlous execuLlve offlces concerned
LherewlLh. 1hls concurrence ls embodled ln SenaLe 8esoluLlon no. 97, daLed uecember
14, 1994.
1be locts
Cn Aprll 13, 1994, 8espondenL 8lzallno navarro, Lhen SecreLary of 1he ueparLmenL of
1rade and lndusLry (SecreLary navarro, for brevlLy), represenLlng Lhe CovernmenL of Lhe
8epubllc of Lhe hlllpplnes, slgned ln Marrakesh, Morocco, Lhe llnal AcL Lmbodylng Lhe
8esulLs of Lhe uruguay 8ound of MulLllaLeral negoLlaLlons (llnal AcL, for brevlLy).
8y slgnlng Lhe llnal AcL,
2
SecreLary navarro on behalf of Lhe 8epubllc of Lhe hlllpplnes,
agreed:
(a) Lo submlL, as approprlaLe, Lhe W1C AgreemenL for Lhe conslderaLlon
of Lhelr respecLlve compeLenL auLhorlLles, wlLh a vlew Lo seeklng
approval of Lhe AgreemenL ln accordance wlLh Lhelr procedures, and
(b) Lo adopL Lhe MlnlsLerlal ueclaraLlons and ueclslons.
Cn AugusL 12, 1994, Lhe members of Lhe hlllpplne SenaLe recelved a leLLer daLed
AugusL 11, 1994 from Lhe resldenL of Lhe hlllpplnes,
3
sLaLlng among oLhers LhaL "Lhe
uruguay 8ound llnal AcL ls hereby submlLLed Lo Lhe SenaLe for lLs concurrence pursuanL
Lo SecLlon 21, ArLlcle vll of Lhe ConsLlLuLlon."
Cn AugusL 13, 1994, Lhe members of Lhe hlllpplne SenaLe recelved anoLher leLLer from
Lhe resldenL of Lhe hlllpplnes
4
llkewlse daLed AugusL 11, 1994, whlch sLaLed among
oLhers LhaL "Lhe uruguay 8ound llnal AcL, Lhe AgreemenL LsLabllshlng Lhe World 1rade
CrganlzaLlon, Lhe MlnlsLerlal ueclaraLlons and ueclslons, and Lhe undersLandlng on
CommlLmenLs ln llnanclal Servlces are hereby submlLLed Lo Lhe SenaLe for lLs
concurrence pursuanL Lo SecLlon 21, ArLlcle vll of Lhe ConsLlLuLlon."
Cn uecember 9, 1994, Lhe resldenL of Lhe hlllpplnes cerLlfled Lhe necesslLy of Lhe
lmmedlaLe adopLlon of .S. 1083, a resoluLlon enLlLled "Concurrlng ln Lhe 8aLlflcaLlon of
Lhe AgreemenL LsLabllshlng Lhe World 1rade CrganlzaLlon."
S

Cn uecember 14, 1994, Lhe hlllpplne SenaLe adopLed 8esoluLlon no. 97 whlch
"8esolved, as lL ls hereby resolved, LhaL Lhe SenaLe concur, as lL hereby concurs, ln Lhe
raLlflcaLlon by Lhe resldenL of Lhe hlllpplnes of Lhe AgreemenL LsLabllshlng Lhe World
1rade CrganlzaLlon."
6
1he LexL of Lhe W1C AgreemenL ls wrlLLen on pages 137 et sep. of
volume l of Lhe 36-volume utoqooy koooJ of Moltllotetol 1toJe Neqotlotloos and
lncludes varlous agreemenLs and assoclaLed legal lnsLrumenLs (ldenLlfled ln Lhe sald
AgreemenL as Annexes 1, 2 and 3 LhereLo and collecLlvely referred Lo as MulLllaLeral
1rade AgreemenLs, for brevlLy) as follows:
AnnLx 1
Annex 1A: MulLllaLeral AgreemenL on 1rade ln Coods
Ceneral AgreemenL on 1arlffs and 1rade 1994
AgreemenL on AgrlculLure
AgreemenL on Lhe AppllcaLlon of SanlLary and
hyLosanlLary Measures
AgreemenL on 1exLlles and CloLhlng
AgreemenL on 1echnlcal 8arrlers Lo 1rade
AgreemenL on 1rade-8elaLed lnvesLmenL Measures
AgreemenL on lmplemenLaLlon of ArLlcle vl of he
Ceneral AgreemenL on 1arlffs and 1rade
1994
AgreemenL on lmplemenLaLlon of ArLlcle vll of Lhe
Ceneral on 1arlffs and 1rade 1994
AgreemenL on re-ShlpmenL lnspecLlon
AgreemenL on 8ules of Crlgln
AgreemenL on lmporLs Llcenslng rocedures
AgreemenL on Subsldles and CoordlnaLlng
Measures
AgreemenL on Safeguards
Annex 18: Ceneral AgreemenL on 1rade ln Servlces and Annexes
Annex 1C: AgreemenL on 1rade-8elaLed AspecLs of lnLellecLual
roperLy 8lghLs
AnnLx 2
undersLandlng on 8ules and rocedures Covernlng
Lhe SeLLlemenL of ulspuLes
AnnLx 3
1rade ollcy 8evlew Mechanlsm
Cn uecember 16, 1994, Lhe resldenL of Lhe hlllpplnes slgned
7
Lhe lnsLrumenL of
8aLlflcaLlon, declarlng:
nCW 1PL8LlC8L, be lL known LhaL l, lluLL v. 8AMCS, resldenL of Lhe
8epubllc of Lhe hlllpplnes, afLer havlng seen and consldered Lhe
aforemenLloned AgreemenL LsLabllshlng Lhe World 1rade CrganlzaLlon
and Lhe agreemenLs and assoclaLed legal lnsLrumenLs lncluded ln
Annexes one (1), Lwo (2) and Lhree (3) of LhaL AgreemenL whlch are
lnLegral parLs Lhereof, slgned aL Marrakesh, Morocco on 13 Aprll 1994, do
hereby raLlfy and conflrm Lhe same and every ArLlcle and Clause Lhereof.
1o emphaslze, Lhe W1C AgreemenL raLlfled by Lhe resldenL of Lhe hlllpplnes ls
composed of Lhe AgreemenL roper and "Lhe assoclaLed legal lnsLrumenLs lncluded ln
Annexes one (1), Lwo (2) and Lhree (3) of LhaL AgreemenL whlch are lnLegral parLs
Lhereof."
Cn Lhe oLher hand, Lhe llnal AcL slgned by SecreLary navarro embodles noL only Lhe
W1C AgreemenL (and lLs lnLegral annexes aforemenLloned) buL also (1) Lhe MlnlsLerlal
ueclaraLlons and ueclslons and (2) Lhe undersLandlng on CommlLmenLs ln llnanclal
Servlces. ln hls Memorandum daLed May 13, 1996,
8
Lhe SollclLor Ceneral descrlbes
Lhese Lwo laLLer documenLs as follows:
1he MlnlsLerlal ueclslons and ueclaraLlons are LwenLy-flve declaraLlons
and declslons on a wlde range of maLLers, such as measures ln favor of
leasL developed counLrles, noLlflcaLlon procedures, relaLlonshlp of W1C
wlLh Lhe lnLernaLlonal MoneLary lund (lMl), and agreemenLs on
Lechnlcal barrlers Lo Lrade and on dlspuLe seLLlemenL.
1he undersLandlng on CommlLmenLs ln llnanclal Servlces dwell on,
among oLher Lhlngs, sLandsLlll or llmlLaLlons and quallflcaLlons of
commlLmenLs Lo exlsLlng non-conformlng measures, markeL access,
naLlonal LreaLmenL, and deflnlLlons of non-resldenL suppller of flnanclal
servlces, commerclal presence and new flnanclal servlce.
Cn uecember 29, 1994, Lhe presenL peLlLlon was flled. AfLer careful dellberaLlon on
respondenLs' commenL and peLlLloners' reply LhereLo, Lhe CourL resolved on uecember
12, 1993, Lo glve due course Lo Lhe peLlLlon, and Lhe parLles LhereafLer flled Lhelr
respecLlve memoranda. 1he courL also requesLed Lhe Ponorable Lllla 8. 8auLlsLa, Lhe
hlllpplne Ambassador Lo Lhe unlLed naLlons sLaLloned ln Ceneva, SwlLzerland, Lo
submlL a paper, hereafLer referred Lo as "8auLlsLa aper,"
9
for brevlLy, (1) provldlng a
hlsLorlcal background of and (2) summarlzlng Lhe sald agreemenLs.
uurlng Lhe Cral ArgumenL held on AugusL 27, 1996, Lhe CourL dlrecLed:
(a) Lhe peLlLloners Lo submlL Lhe (1) SenaLe CommlLLee 8eporL on Lhe
maLLer ln conLroversy and (2) Lhe LranscrlpL of proceedlngs/hearlngs ln
Lhe SenaLe, and
(b) Lhe SollclLor Ceneral, as counsel for respondenLs, Lo flle (1) a llsL of
hlllpplne LreaLles slgned prlor Lo Lhe hlllpplne adherence Lo Lhe W1C
AgreemenL, whlch derogaLe from hlllpplne soverelgnLy and (2) coples of
Lhe mulLl-volume W1C AgreemenL and oLher documenLs menLloned ln
Lhe llnal AcL, as soon as posslble.
AfLer recelpL of Lhe foregolng documenLs, Lhe CourL sald lL would conslder Lhe case
submlLLed for resoluLlon. ln a Compllance daLed SepLember 16, 1996, Lhe SollclLor
Ceneral submlLLed a prlnLed copy of Lhe 36-volume utoqooy koooJ of Moltllotetol
1toJe Neqotlotloos, and ln anoLher Compllance daLed CcLober 24, 1996, he llsLed Lhe
varlous "bllaLeral or mulLllaLeral LreaLles or lnLernaLlonal lnsLrumenLs lnvolvlng
derogaLlon of hlllpplne soverelgnLy." eLlLloners, on Lhe oLher hand, submlLLed Lhelr
Compllance daLed !anuary 28, 1997, on !anuary 30, 1997.
1be lssoes
ln Lhelr Memorandum daLed March 11, 1996, peLlLloners summarlzed Lhe lssues as
follows:
A. WheLher Lhe peLlLlon presenLs a pollLlcal quesLlon or ls oLherwlse noL
[usLlclable.
8. WheLher Lhe peLlLloner members of Lhe SenaLe who parLlclpaLed ln Lhe
dellberaLlons and voLlng leadlng Lo Lhe concurrence are esLopped from
lmpugnlng Lhe valldlLy of Lhe AgreemenL LsLabllshlng Lhe World 1rade
CrganlzaLlon or of Lhe valldlLy of Lhe concurrence.
C. WheLher Lhe provlslons of Lhe AgreemenL LsLabllshlng Lhe World 1rade
CrganlzaLlon conLravene Lhe provlslons of Sec. 19, ArLlcle ll, and Secs. 10
and 12, ArLlcle xll, all of Lhe 1987 hlllpplne ConsLlLuLlon.
u. WheLher provlslons of Lhe AgreemenL LsLabllshlng Lhe World 1rade
CrganlzaLlon unduly llmlL, resLrlcL and lmpalr hlllpplne soverelgnLy
speclflcally Lhe leglslaLlve power whlch, under Sec. 2, ArLlcle vl, 1987
hlllpplne ConsLlLuLlon ls "vesLed ln Lhe Congress of Lhe hlllpplnes",
L. WheLher provlslons of Lhe AgreemenL LsLabllshlng Lhe World 1rade
CrganlzaLlon lnLerfere wlLh Lhe exerclse of [udlclal power.
l. WheLher Lhe respondenL members of Lhe SenaLe acLed ln grave abuse
of dlscreLlon amounLlng Lo lack or excess of [urlsdlcLlon when Lhey voLed
for concurrence ln Lhe raLlflcaLlon of Lhe consLlLuLlonally-lnflrm
AgreemenL LsLabllshlng Lhe World 1rade CrganlzaLlon.
C. WheLher Lhe respondenL members of Lhe SenaLe acLed ln grave abuse
of dlscreLlon amounLlng Lo lack or excess of [urlsdlcLlon when Lhey
concurred only ln Lhe raLlflcaLlon of Lhe AgreemenL LsLabllshlng Lhe
World 1rade CrganlzaLlon, and noL wlLh Lhe resldenLlal submlsslon
whlch lncluded Lhe llnal AcL, MlnlsLerlal ueclaraLlon and ueclslons, and
Lhe undersLandlng on CommlLmenLs ln llnanclal Servlces.
Cn Lhe oLher hand, Lhe SollclLor Ceneral as counsel for respondenLs "synLheslzed Lhe
several lssues ralsed by peLlLloners lnLo Lhe followlng":
10

1. WheLher or noL Lhe provlslons of Lhe "AgreemenL LsLabllshlng Lhe
World 1rade CrganlzaLlon and Lhe AgreemenLs and AssoclaLed Legal
lnsLrumenLs lncluded ln Annexes one (1), Lwo (2) and Lhree (3) of LhaL
agreemenL" clLed by peLlLloners dlrecLly conLravene or undermlne Lhe
leLLer, splrlL and lnLenL of SecLlon 19, ArLlcle ll and SecLlons 10 and 12,
ArLlcle xll of Lhe 1987 ConsLlLuLlon.
2. WheLher or noL cerLaln provlslons of Lhe AgreemenL unduly llmlL,
resLrlcL or lmpalr Lhe exerclse of leglslaLlve power by Congress.
3. WheLher or noL cerLaln provlslons of Lhe AgreemenL lmpalr Lhe
exerclse of [udlclal power by Lhls Ponorable CourL ln promulgaLlng Lhe
rules of evldence.
4. WheLher or noL Lhe concurrence of Lhe SenaLe "ln Lhe raLlflcaLlon by
Lhe resldenL of Lhe hlllpplnes of Lhe AgreemenL esLabllshlng Lhe World
1rade CrganlzaLlon" lmplled re[ecLlon of Lhe LreaLy embodled ln Lhe llnal
AcL.
8y ralslng and argulng only four lssues agalnsL Lhe seven presenLed by peLlLloners, Lhe
SollclLor Ceneral has effecLlvely lgnored Lhree, namely: (1) wheLher Lhe peLlLlon
presenLs a pollLlcal quesLlon or ls oLherwlse noL [usLlclable, (2) wheLher peLlLloner-
members of Lhe SenaLe (WlgberLo L. 1anada and Anna uomlnlque CoseLeng) are
esLopped from [olnlng Lhls sulL, and (3) wheLher Lhe respondenL-members of Lhe SenaLe
acLed ln grave abuse of dlscreLlon when Lhey voLed for concurrence ln Lhe raLlflcaLlon of
Lhe W1C AgreemenL. 1he foregolng noLwlLhsLandlng, Lhls CourL resolved Lo deal wlLh
Lhese Lhree lssues Lhus:
(1) 1he "pollLlcal quesLlon" lssue - belng very fundamenLal and vlLal, and belng a
maLLer LhaL probes lnLo Lhe very [urlsdlcLlon of Lhls CourL Lo hear and declde Lhls case -
was dellberaLed upon by Lhe CourL and wlll Lhus be ruled upon as Lhe flrsL lssue,
(2) 1he maLLer of esLoppel wlll noL be Laken up because Lhls defense ls walvable and Lhe
respondenLs have effecLlvely walved lL by noL pursulng lL ln any of Lhelr pleadlngs, ln any
evenL, Lhls lssue, even lf ruled ln respondenLs' favor, wlll noL cause Lhe peLlLlon's
dlsmlssal as Lhere are peLlLloners oLher Lhan Lhe Lwo senaLors, who are noL vulnerable
Lo Lhe defense of esLoppel, and
(3) 1he lssue of alleged grave abuse of dlscreLlon on Lhe parL of Lhe respondenL senaLors
wlll be Laken up as an lnLegral parL of Lhe dlsposlLlon of Lhe four lssues ralsed by Lhe
SollclLor Ceneral.
uurlng lLs dellberaLlons on Lhe case, Lhe CourL noLed LhaL Lhe respondenLs dld noL
quesLlon Lhe locos stooJl of peLlLloners. Pence, Lhey are also deemed Lo have walved
Lhe beneflL of such lssue. 1hey probably reallzed LhaL grave consLlLuLlonal lssues,
expendlLures of publlc funds and serlous lnLernaLlonal commlLmenLs of Lhe naLlon are
lnvolved here, and LhaL LranscendenLal publlc lnLeresL requlres LhaL Lhe subsLanLlve
lssues be meL head on and declded on Lhe merlLs, raLher Lhan sklrLed or deflecLed by
procedural maLLers.
11

1o recaplLulaLe, Lhe lssues LhaL wlll be ruled upon shorLly are:
(1) uCLS 1PL L1l1lCn 8LSLn1 A !uS1lClA8LL CCn18CvL8S??
C1PL8WlSL S1A1Lu, uCLS 1PL L1l1lCn lnvCLvL A CLl1lCAL
CuLS1lCn CvL8 WPlCP 1PlS CCu81 PAS nC !u8lSulC1lCn?
(2) uC 1PL 8CvlSlCnS Cl 1PL W1C AC8LLMLn1 Anu l1S 1P8LL
AnnLxLS CCn18AvLnL SLC. 19, A81lCLL ll, Anu SLCS. 10 Anu 12,
A81lCLL xll, Cl 1PL PlLllnL CCnS1l1u1lCn?
(3) uC 1PL 8CvlSlCnS Cl SAlu AC8LLMLn1 Anu l1S AnnLxLS LlMl1,
8LS18lC1, C8 lMAl8 1PL LxL8ClSL Cl LLClSLA1lvL CWL8 8?
CCnC8LSS?
(4) uC SAlu 8CvlSlCnS unuuL? lMAl8 C8 ln1L8lL8L Wl1P 1PL
LxL8ClSL Cl !uulClAL CWL8 8? 1PlS CCu81 ln 8CMuLCA1lnC 8uLLS
Cn LvluLnCL?
(3) WAS 1PL CCnCu88LnCL Cl 1PL SLnA1L ln 1PL W1C AC8LLMLn1
Anu l1S AnnLxLS SulllClLn1 Anu/C8 vALlu, CCnSluL8lnC 1PA1 l1 ulu
nC1 lnCLuuL 1PL llnAL AC1, MlnlS1L8lAL uLCLA8A1lCnS Anu
uLClSlCnS, Anu 1PL unuL8S1AnulnC Cn CCMMl1MLn1S ln
llnAnClAL SL8vlCLS?
$%& ()*+, -++.&: /0&+ ,%& 10.*,
234& !.*)+5)6,)07 84&* ,%& 107,*04&*+9:
ln seeklng Lo nulllfy an acL of Lhe hlllpplne SenaLe on Lhe ground LhaL lL conLravenes
Lhe ConsLlLuLlon, Lhe peLlLlon no doubL ralses a [usLlclable conLroversy. Where an acLlon
of Lhe leglslaLlve branch ls serlously alleged Lo have lnfrlnged Lhe ConsLlLuLlon, lL
becomes noL only Lhe rlghL buL ln facL Lhe duLy of Lhe [udlclary Lo seLLle Lhe dlspuLe.
"1he quesLlon Lhus posed ls [udlclal raLher Lhan pollLlcal. 1he duLy (Lo ad[udlcaLe)
remalns Lo assure LhaL Lhe supremacy of Lhe ConsLlLuLlon ls upheld."
12
Cnce a
"conLroversy as Lo Lhe appllcaLlon or lnLerpreLaLlon of a consLlLuLlonal provlslon ls ralsed
before Lhls CourL (as ln Lhe lnsLanL case), lL becomes a legal lssue whlch Lhe CourL ls
bound by consLlLuLlonal mandaLe Lo declde."
13

1he [urlsdlcLlon of Lhls CourL Lo ad[udlcaLe Lhe maLLers
14
ralsed ln Lhe peLlLlon ls clearly
seL ouL ln Lhe 1987 ConsLlLuLlon,
1S
as follows:
!udlclal power lncludes Lhe duLy of Lhe courLs of [usLlce Lo seLLle acLual
conLroversles lnvolvlng rlghLs whlch are legally demandable and
enforceable, and Lo deLermlne wheLher or noL Lhere has been a grave
abuse of dlscreLlon amounLlng Lo lack or excess of [urlsdlcLlon on Lhe parL
of any branch or lnsLrumenLallLy of Lhe governmenL.
1he foregolng LexL emphaslzes Lhe [udlclal deparLmenL's duLy and power Lo sLrlke down
grave abuse of dlscreLlon on Lhe parL of any branch or lnsLrumenLallLy of governmenL
lncludlng Congress. lL ls an lnnovaLlon ln our pollLlcal law.
16
As explalned by former
Chlef !usLlce 8oberLo Concepclon,
17
"Lhe [udlclary ls Lhe flnal arblLer on Lhe quesLlon of
wheLher or noL a branch of governmenL or any of lLs offlclals has acLed wlLhouL
[urlsdlcLlon or ln excess of [urlsdlcLlon or so caprlclously as Lo consLlLuLe an abuse of
dlscreLlon amounLlng Lo excess of [urlsdlcLlon. 1hls ls noL only a [udlclal power buL a
duLy Lo pass [udgmenL on maLLers of Lhls naLure."
As Lhls CourL has repeaLedly and flrmly emphaslzed ln many cases,
18
lL wlll noL shlrk,
dlgress from or abandon lLs sacred duLy and auLhorlLy Lo uphold Lhe ConsLlLuLlon ln
maLLers LhaL lnvolve grave abuse of dlscreLlon broughL before lL ln approprlaLe cases,
commlLLed by any offlcer, agency, lnsLrumenLallLy or deparLmenL of Lhe governmenL.
As Lhe peLlLlon alleges grave abuse of dlscreLlon and as Lhere ls no oLher plaln, speedy or
adequaLe remedy ln Lhe ordlnary course of law, we have no heslLaLlon aL all ln holdlng
LhaL Lhls peLlLlon should be glven due course and Lhe vlLal quesLlons ralsed Lhereln ruled
upon under 8ule 63 of Lhe 8ules of CourL. lndeed, cettlototl, prohlblLlon
and mooJomos are approprlaLe remedles Lo ralse consLlLuLlonal lssues and Lo revlew
and/or prohlblL/nulllfy, when proper, acLs of leglslaLlve and execuLlve offlclals. Cn Lhls,
we have no equlvocaLlon.
We should sLress LhaL, ln decldlng Lo Lake [urlsdlcLlon over Lhls peLlLlon, Lhls CourL wlll
noL revlew Lhe wlsJom of Lhe declslon of Lhe resldenL and Lhe SenaLe ln enllsLlng Lhe
counLry lnLo Lhe W1C, or pass upon Lhe metlts of Lrade llberallzaLlon as a pollcy
espoused by sald lnLernaLlonal body. nelLher wlll lL rule on Lhe ptoptlety of Lhe
governmenL's economlc pollcy of reduclng/removlng Larlffs, Laxes, subsldles,
quanLlLaLlve resLrlcLlons, and oLher lmporL/Lrade barrlers. 8aLher, lL wlll only exerclse lLs
consLlLuLlonal duLy "Lo deLermlne wheLher or noL Lhere had been a grave abuse of
dlscreLlon amounLlng Lo lack or excess of [urlsdlcLlon" on Lhe parL of Lhe SenaLe ln
raLlfylng Lhe W1C AgreemenL and lLs Lhree annexes.
;&6075 -++.&: $%& <$8 =>*&&?&7,
375 @6070?)6 A3,)073B)+?
1hls ls Lhe lls moto, Lhe maln lssue, ralsed by Lhe peLlLlon.
eLlLloners vlgorously argue LhaL Lhe "leLLer, splrlL and lnLenL" of Lhe ConsLlLuLlon
mandaLlng "economlc naLlonallsm" are vlolaLed by Lhe so-called "parlLy provlslons" and
"naLlonal LreaLmenL" clauses scaLLered ln varlous parLs noL only of Lhe W1C AgreemenL
and lLs annexes buL also ln Lhe MlnlsLerlal ueclslons and ueclaraLlons and ln Lhe
undersLandlng on CommlLmenLs ln llnanclal Servlces.
Speclflcally, Lhe "flagshlp" consLlLuLlonal provlslons referred Lo are Sec 19, ArLlcle ll, and
Secs. 10 and 12, ArLlcle xll, of Lhe ConsLlLuLlon, whlch are worded as follows:
ArLlcle ll
uLCLA8A1lCn Cl 8lnClLLS
Anu S1A1L CLlClLS
xxx xxx xxx
Sec. 19. 1he SLaLe shall develop a self-rellanL and lndependenL naLlonal
economy effecLlvely conLrolled by llllplnos.
xxx xxx xxx
ArLlcle xll
nA1lCnAL LCCnCM? Anu A18lMCn?
xxx xxx xxx
Sec. 10. . . . 1he Congress shall enacL measures LhaL wlll encourage Lhe
formaLlon and operaLlon of enLerprlses whose caplLal ls wholly owned by
llllplnos.
ln Lhe granL of rlghLs, prlvlleges, and concesslons coverlng Lhe naLlonal
economy and paLrlmony, Lhe SLaLe shall glve preference Lo quallfled
llllplnos.
xxx xxx xxx
Sec. 12. 1he SLaLe shall promoLe Lhe preferenLlal use of llllplno labor,
domesLlc maLerlals and locally produced goods, and adopL measures LhaL
help make Lhem compeLlLlve.
eLlLloners aver LhaL Lhese sacred consLlLuLlonal prlnclples are desecraLed by Lhe
followlng W1C provlslons quoLed ln Lhelr memorandum:
19

a) ln Lhe area of lnvesLmenL measures relaLed Lo Lrade ln goods (18lMS,
for brevlLy):
ArLlcle 2
Notloool 1teotmeot and CuanLlLaLlve 8esLrlcLlons.
1. WlLhouL pre[udlce Lo oLher rlghLs and obllgaLlons under
CA11 1994, no Member shall apply any 18lM LhaL ls
lnconslsLenL wlLh Lhe provlslons of ArLlcle ll or ArLlcle xl of
CA11 1994.
2. An lllusLraLlve llsL of 18lMS LhaL are lnconslsLenL wlLh
Lhe obllgaLlons of general ellmlnaLlon of quanLlLaLlve
resLrlcLlons provlded for ln paragraph l of ArLlcle xl of
CA11 1994 ls conLalned ln Lhe Annex Lo Lhls AgreemenL."
(AgreemenL on 1rade-8elaLed lnvesLmenL Measures, vol.
27, uruguay 8ound, Legal lnsLrumenLs, p. 22121, emphasls
supplled).
1he Annex referred Lo reads as follows:
AnnLx
lllusLraLlve LlsL
1. 18lMS LhaL are lnconslsLenL wlLh Lhe obllgaLlon of naLlonal LreaLmenL
provlded for ln paragraph 4 of ArLlcle lll of CA11 1994 lnclude Lhose
whlch are mandaLory or enforceable under domesLlc law or under
admlnlsLraLlve rullngs, or compllance wlLh whlch ls necessary Lo obLaln an
advanLage, and whlch requlre:
(a) Lhe purchase or use by an enLerprlse of producLs of
domesLlc orlgln or from any domesLlc source, wheLher
speclfled ln Lerms of parLlcular producLs, ln Lerms of
volume or value of producLs, or ln Lerms of proporLlon of
volume or value of lLs local producLlon, or
(b) LhaL an enLerprlse's purchases or use of lmporLed
producLs be llmlLed Lo an amounL relaLed Lo Lhe volume or
value of local producLs LhaL lL exporLs.
2. 18lMS LhaL are lnconslsLenL wlLh Lhe obllgaLlons of general ellmlnaLlon
of quanLlLaLlve resLrlcLlons provlded for ln paragraph 1 of ArLlcle xl of
CA11 1994 lnclude Lhose whlch are mandaLory or enforceable under
domesLlc laws or under admlnlsLraLlve rullngs, or compllance wlLh whlch
ls necessary Lo obLaln an advanLage, and whlch resLrlcL:
(a) Lhe lmporLaLlon by an enLerprlse of producLs used ln or
relaLed Lo Lhe local producLlon LhaL lL exporLs,
(b) Lhe lmporLaLlon by an enLerprlse of producLs used ln or
relaLed Lo lLs local producLlon by resLrlcLlng lLs access Lo
forelgn exchange lnflows aLLrlbuLable Lo Lhe enLerprlse, or
(c) Lhe exporLaLlon or sale for exporL speclfled ln Lerms of
parLlcular producLs, ln Lerms of volume or value of
producLs, or ln Lerms of a preparaLlon of volume or value
of lLs local producLlon. (Annex Lo Lhe AgreemenL on 1rade-
8elaLed lnvesLmenL Measures, vol. 27, uruguay 8ound
Legal uocumenLs, p. 22123, emphasls supplled).
1he paragraph 4 of ArLlcle lll of CA11 1994 referred Lo ls quoLed as
follows:
1he producLs of Lhe LerrlLory of any conLracLlng parLy
lmporLed lnLo Lhe LerrlLory of any oLher conLracLlng
parLy sboll be occotJeJ tteotmeot oo less fovotoble tboo
tbot occotJeJ to llke ptoJocts of ootloool otlqlo ln respecL
of laws, regulaLlons and requlremenLs affecLlng Lhelr
lnLernal sale, offerlng for sale, purchase, LransporLaLlon,
dlsLrlbuLlon or use, Lhe provlslons of Lhls paragraph shall
noL prevenL Lhe appllcaLlon of dlfferenLlal lnLernal
LransporLaLlon charges whlch are based excluslvely on Lhe
economlc operaLlon of Lhe means of LransporL and noL on
Lhe naLlonallLy of Lhe producL." (ArLlcle lll, CA11 1947, as
amended by Lhe roLocol Modlfylng arL ll, and ArLlcle
xxvl of CA11, 14 SepLember 1948, 62 uM1S 82-84 ln
relaLlon Lo paragraph 1(a) of Lhe Ceneral AgreemenL on
1arlffs and 1rade 1994, vol. 1, uruguay 8ound, Legal
lnsLrumenLs p. 177, emphasls supplled).
(b) lo tbe oteo of ttoJe teloteJ ospects of lotellectool ptopetty tlqbts
(1kll5, fot btevlty):
ocb Membet sboll occotJ to tbe ootloools of otbet
Membets tteotmeot oo less fovootoble tboo tbot lt occotJs
to lts owo ootloools wlLh regard Lo Lhe proLecLlon of
lnLellecLual properLy. . . (par. 1 ArLlcle 3, AgreemenL on
1rade-8elaLed AspecL of lnLellecLual roperLy rlghLs, vol.
31, uruguay 8ound, Legal lnsLrumenLs, p. 23432 (emphasls
supplled)
(c) lo tbe oteo of tbe Ceoetol Aqteemeot oo 1toJe lo 5etvlces:
Notloool 1teotmeot
1. ln Lhe secLors lnscrlbed ln lLs schedule, and sub[ecL Lo
any condlLlons and quallflcaLlons seL ouL Lhereln, each
Member shall accord Lo servlces and servlce suppllers of
any oLher Member, ln respecL of all measures affecLlng Lhe
supply of servlces, tteotmeot oo less fovootoble tboo lt
occotJs to lts owo llke setvlces ooJ setvlce soppllets.
2. A Member may meeL Lhe requlremenL of paragraph l by
accordlng Lo servlces and servlce suppllers of any oLher
Member, elLher formally suppllers of any oLher Member,
elLher formally ldenLlcal LreaLmenL or formally dlfferenL
LreaLmenL Lo LhaL lL accords Lo lLs own llke servlces and
servlce suppllers.
3. lormally ldenLlcal or formally dlfferenL LreaLmenL shall
be consldered Lo be less favourable lf lL modlfles Lhe
condlLlons of compleLlon ln favour of servlces or servlce
suppllers of Lhe Member compared Lo llke servlces or
servlce suppllers of any oLher Member. (ArLlcle xvll,
Ceneral AgreemenL on 1rade ln Servlces, vol. 28, uruguay
8ound Legal lnsLrumenLs, p. 22610 emphasls supplled).
lL ls peLlLloners' poslLlon LhaL Lhe foregolng "naLlonal LreaLmenL" and "parlLy provlslons"
of Lhe W1C AgreemenL "place naLlonals and producLs of member counLrles on Lhe same
fooLlng as llllplnos and local producLs," ln conLravenLlon of Lhe "llllplno llrsL" pollcy of
Lhe ConsLlLuLlon. 1hey allegedly render meanlngless Lhe phrase "effecLlvely conLrolled
by llllplnos." 1he consLlLuLlonal confllcL becomes more manlfesL when vlewed ln Lhe
conLexL of Lhe clear duLy lmposed on Lhe hlllpplnes as a W1C member Lo ensure Lhe
conformlLy of lLs laws, regulaLlons and admlnlsLraLlve procedures wlLh lLs obllgaLlons as
provlded ln Lhe annexed agreemenLs.
20
eLlLloners furLher argue LhaL Lhese provlslons
conLravene consLlLuLlonal llmlLaLlons on Lhe role exporLs play ln naLlonal developmenL
and negaLe Lhe preferenLlal LreaLmenL accorded Lo llllplno labor, domesLlc maLerlals
and locally produced goods.
Cn Lhe oLher hand, respondenLs Lhrough Lhe SollclLor Ceneral counLer (1) LhaL such
CharLer provlslons are noL self-execuLlng and merely seL ouL general pollcles, (2) LhaL
Lhese naLlonallsLlc porLlons of Lhe ConsLlLuLlon lnvoked by peLlLloners should noL be
read ln lsolaLlon buL should be relaLed Lo oLher relevanL provlslons of ArL. xll,
parLlcularly Secs. 1 and 13 Lhereof, (3) LhaL read properly, Lhe clLed W1C clauses do noL
confllcL wlLh ConsLlLuLlon, and (4) LhaL Lhe W1C AgreemenL conLalns sufflclenL
provlslons Lo proLecL developlng counLrles llke Lhe hlllpplnes from Lhe harshness of
sudden Lrade llberallzaLlon.
We shall now dlscuss and rule on Lhese argumenLs.
ueclototloo of ltloclples
Not 5elf-xecotloq
8y lLs very LlLle, ArLlcle ll of Lhe ConsLlLuLlon ls a "declaraLlon of prlnclples and sLaLe
pollcles." 1he counLerparL of Lhls arLlcle ln Lhe 1933 ConsLlLuLlon
21
ls called Lhe "baslc
pollLlcal creed of Lhe naLlon" by uean vlcenLe Slnco.
22
1hese prlnclples ln ArLlcle ll are
noL lnLended Lo be self-execuLlng prlnclples ready for enforcemenL Lhrough Lhe
courLs.
23
1hey are used by Lhe [udlclary as alds or as guldes ln Lhe exerclse of lLs power
of [udlclal revlew, and by Lhe leglslaLure ln lLs enacLmenL of laws. As held ln Lhe leadlng
case of kllosboyoo, locotpototeJ vs. Mototo,
24
Lhe prlnclples and sLaLe pollcles
enumeraLed ln ArLlcle ll and some secLlons of ArLlcle xll are noL "self-execuLlng
provlslons, Lhe dlsregard of whlch can glve rlse Lo a cause of acLlon ln Lhe courLs. 1hey
do noL embody [udlclally enforceable consLlLuLlonal rlghLs buL guldellnes for leglslaLlon."
ln Lhe same llghL, we held ln 8osco vs. loqcot
2S
LhaL broad consLlLuLlonal prlnclples
need leglslaLlve enacLmenLs Lo lmplemenL Lhe, Lhus:
Cn peLlLloners' allegaLlon LhaL .u. 1869 vlolaLes SecLlons 11 (ersonal
ulgnlLy) 12 (lamlly) and 13 (8ole of ?ouLh) of ArLlcle ll, SecLlon 13 (Soclal
!usLlce) of ArLlcle xlll and SecLlon 2 (LducaLlonal values) of ArLlcle xlv of
Lhe 1987 ConsLlLuLlon, sufflce lL Lo sLaLe also LhaL Lhese are merely
sLaLemenLs of prlnclples and pollcles. As such, Lhey are baslcally noL self-
execuLlng, meanlng a law should be passed by Congress Lo clearly deflne
and effecLuaLe such prlnclples.
ln general, Lherefore, Lhe 1933 provlslons were noL
lnLended Lo be self-execuLlng prlnclples ready for
enforcemenL Lhrough Lhe courLs. 1hey were raLher
dlrecLlves addressed Lo Lhe execuLlve and Lo Lhe
leglslaLure. lf Lhe execuLlve and Lhe leglslaLure falled Lo
heed Lhe dlrecLlves of Lhe arLlcle, Lhe avallable remedy
was noL [udlclal buL pollLlcal. 1he elecLoraLe could express
Lhelr dlspleasure wlLh Lhe fallure of Lhe execuLlve and Lhe
leglslaLure Lhrough Lhe language of Lhe balloL. (8ernas,
vol. ll, p. 2).
1he reasons for denylng a cause of acLlon Lo an alleged lnfrlngemenL of board
consLlLuLlonal prlnclples are sourced from baslc conslderaLlons of due process and Lhe
lack of [udlclal auLhorlLy Lo wade "lnLo Lhe uncharLed ocean of soclal and economlc
pollcy maklng." Mr. !usLlce llorenLlno . lellclano ln hls concurrlng oplnlon lnOposo
vs. loctotoo, It.,
26
explalned Lhese reasons as follows:
My suggesLlon ls slmply LhaL peLlLloners musL, before Lhe Lrlal courL,
show a more speclflc legal rlghL - a rlghL casL ln language of a
slgnlflcanLly lower order of generallLy Lhan ArLlcle ll (13) of Lhe
ConsLlLuLlon - LhaL ls or may be vlolaLed by Lhe acLlons, or fallures Lo
acL, lmpuLed Lo Lhe publlc respondenL by peLlLloners so LhaL Lhe Lrlal
courL can valldly render [udgmenL graLlng all or parL of Lhe rellef prayed
for. 1o my mlnd, Lhe courL should be undersLood as slmply saylng LhaL
such a more speclflc legal rlghL or rlghLs may well exlsL ln our corpus of
law, conslderlng Lhe general pollcy prlnclples found ln Lhe ConsLlLuLlon
and Lhe exlsLence of Lhe hlllpplne LnvlronmenL Code, and LhaL Lhe Lrlal
courL should have glven peLlLloners an effecLlve opporLunlLy so Lo
demonsLraLe, lnsLead of aborLlng Lhe proceedlngs on a moLlon Lo dlsmlss.
lL seems Lo me lmporLanL LhaL Lhe legal rlghL whlch ls an essenLlal
componenL of a cause of acLlon be a speclflc, operable legal rlghL, raLher
Lhan a consLlLuLlonal or sLaLuLory pollcy, for aL leasL Lwo (2) reasons. Cne
ls LhaL unless Lhe legal rlghL clalmed Lo have been vlolaLed or dlsregarded
ls glven speclflcaLlon ln operaLlonal Lerms, defendanLs may well be
unable Lo defend Lhemselves lnLelllgenLly and effecLlvely, ln oLher words,
Lhere are due process dlmenslons Lo Lhls maLLer.
1he second ls a broader-gauge conslderaLlon - where a speclflc vlolaLlon
of law or appllcable regulaLlon ls noL alleged or proved, peLlLloners can be
expecLed Lo fall back on Lhe expanded concepLlon of [udlclal power ln Lhe
second paragraph of SecLlon 1 of ArLlcle vlll of Lhe ConsLlLuLlon whlch
reads:
Sec. 1. . . .
!udlclal power lncludes Lhe duLy of Lhe courLs of [usLlce Lo
seLLle acLual conLroversles lnvolvlng rlghLs whlch are
legally demandable and enforceable, and Lo deLermlne
wheLher or noL Lhere has been a grave abuse of dlscreLlon
amounLlng Lo lack or excess of [urlsdlcLlon on Lhe parL of
any branch or lnsLrumenLallLy of Lhe CovernmenL.
(Lmphasls supplled)
When subsLanLlve sLandards as general as "Lhe rlghL Lo a balanced and
healLhy ecology" and "Lhe rlghL Lo healLh" are comblned wlLh remedlal
sLandards as broad ranglng as "a grave abuse of dlscreLlon amounLlng Lo
lack or excess of [urlsdlcLlon," Lhe resulL wlll be, lL ls respecLfully
submlLLed, Lo propel courLs lnLo Lhe uncharLed ocean of soclal and
economlc pollcy maklng. AL leasL ln respecL of Lhe vasL area of
envlronmenLal proLecLlon and managemenL, our courLs have no clalm Lo
speclal Lechnlcal compeLence and experlence and professlonal
quallflcaLlon. Where no speclflc, operable norms and sLandards are
shown Lo exlsL, Lhen Lhe pollcy maklng deparLmenLs - Lhe leglslaLlve and
execuLlve deparLmenLs - musL be glven a real and effecLlve opporLunlLy
Lo fashlon and promulgaLe Lhose norms and sLandards, and Lo lmplemenL
Lhem before Lhe courLs should lnLervene.
cooomlc Notlooollsm 5boolJ 8e keoJ wltb
Otbet coostltotloool MooJotes to Attolo
8olooceJ uevelopmeot of cooomy
Cn Lhe oLher hand, Secs. 10 and 12 of ArLlcle xll, aparL from merely laylng down general
prlnclples relaLlng Lo Lhe naLlonal economy and paLrlmony, should be read and
undersLood ln relaLlon Lo Lhe oLher secLlons ln sald arLlcle, especlally Secs. 1 and 13
Lhereof whlch read:
Sec. 1. 1he goals of Lhe naLlonal economy are a more equlLable
dlsLrlbuLlon of opporLunlLles, lncome, and wealLh, a susLalned lncrease ln
Lhe amounL of goods and servlces produced by Lhe naLlon for Lhe beneflL
of Lhe people, and an expandlng producLlvlLy as Lhe key Lo ralslng Lhe
quallLy of llfe for all especlally Lhe underprlvlleged.
1he SLaLe shall promoLe lndusLrlallzaLlon and full employmenL based on
sound agrlculLural developmenL and agrarlan reform, Lhrough lndusLrles
LhaL make full and efflclenL use of human and naLural resources, and
whlch are compeLlLlve ln boLh domesLlc and forelgn markeLs. Powever,
Lhe SLaLe shall proLecL llllplno enLerprlses agalnsL unfalr forelgn
compeLlLlon and Lrade pracLlces.
ln Lhe pursulL of Lhese goals, all secLors of Lhe economy and all reglons of
Lhe counLry shall be glven opLlmum opporLunlLy Lo develop. . . .
xxx xxx xxx
Sec. 13. 1he SLaLe shall pursue a Lrade pollcy LhaL serves Lhe general
welfare and uLlllzes all forms and arrangemenLs of exchange on Lhe basls
of equallLy and reclproclLy.
As polnLed ouL by Lhe SollclLor Ceneral, Sec. 1 lays down Lhe boslc qools of naLlonal
economlc developmenL, as follows:
1. A more equlLable dlsLrlbuLlon of opporLunlLles, lncome and wealLh,
2. A susLalned lncrease ln Lhe amounL of goods and servlces provlded by Lhe naLlon for
Lhe beneflL of Lhe people, and
3. An expandlng producLlvlLy as Lhe key Lo ralslng Lhe quallLy of llfe for all especlally Lhe
underprlvlleged.
WlLh Lhese goals ln conLexL, Lhe ConsLlLuLlon Lhen ordalns Lhe ldeals of economlc
naLlonallsm (1) by expresslng preference ln favor of quallfled llllplnos "ln Lhe granL of
rlghLs, prlvlleges and concesslons coverlng Lhe naLlonal economy and paLrlmony"
27
and
ln Lhe use of "llllplno labor, domesLlc maLerlals and locally-produced goods", (2) by
mandaLlng Lhe SLaLe Lo "adopL measures LhaL help make Lhem compeLlLlve,
28
and (3) by
requlrlng Lhe SLaLe Lo "develop a self-rellanL and lndependenL naLlonal economy
effecLlvely conLrolled by llllplnos."
29
ln slmllar language, Lhe ConsLlLuLlon Lakes lnLo
accounL Lhe reallLles of Lhe ouLslde world as lL requlres Lhe pursulL of "a Lrade pollcy
LhaL serves Lhe general welfare and uLlllzes all forms and arrangemenLs of exchange on
Lhe basls of equallLy ad reclproclLy",
30
and speaks of lndusLrles "whlch are compeLlLlve
ln boLh domesLlc and fotelqo markeLs" as well as of Lhe proLecLlon of "llllplno
enLerprlses agalnsL oofolt forelgn compeLlLlon and Lrade pracLlces."
lL ls Lrue LhaL ln Lhe recenL case of Moollo ltloce notel vs. Covetomeot 5etvlce losotooce
5ystem, et ol.,
31
Lhls CourL held LhaL "Sec. 10, second par., ArL. xll of Lhe 1987
ConsLlLuLlon ls a mandaLory, poslLlve command whlch ls compleLe ln lLself and whlch
needs no furLher guldellnes or lmplemenLlng laws or rule for lLs enforcemenL. lrom lLs
very words Lhe provlslon does noL requlre any leglslaLlon Lo puL lL ln operaLlon. lL ls pet
se [udlclally enforceable." Powever, as Lhe consLlLuLlonal provlslon lLself sLaLes, lL ls
enforceable only ln regard Lo "Lhe granLs of rlghLs, prlvlleges and concesslons coverlng
naLlonal economy and paLrlmony" and noL Lo every aspecL of Lrade and commerce. lL
refers Lo excepLlons raLher Lhan Lhe rule. 1he lssue here ls noL wheLher Lhls paragraph of
Sec. 10 of ArL. xll ls self-execuLlng or noL. 8aLher, Lhe lssue ls wheLher, as a rule, Lhere
are enough balanclng provlslons ln Lhe ConsLlLuLlon Lo allow Lhe SenaLe Lo raLlfy Lhe
hlllpplne concurrence ln Lhe W1C AgreemenL. And we hold LhaL Lhere are.
All Lold, whlle Lhe ConsLlLuLlon lndeed mandaLes a blas ln favor of llllplno goods,
servlces, labor and enLerprlses, aL Lhe same Llme, lL recognlzes Lhe need for buslness
exchange wlLh Lhe resL of Lhe world on Lhe bases of equallLy and reclproclLy and llmlLs
proLecLlon of llllplno enLerprlses only agalnsL forelgn compeLlLlon and Lrade pracLlces
LhaL are unfalr.
32
ln oLher words, Lhe ConsLlLuLlon dld noL lnLend Lo pursue an
lsolaLlonlsL pollcy. lL dld noL shuL ouL forelgn lnvesLmenLs, goods and servlces ln Lhe
developmenL of Lhe hlllpplne economy. Whlle Lhe ConsLlLuLlon does noL encourage Lhe
unllmlLed enLry of forelgn goods, servlces and lnvesLmenLs lnLo Lhe counLry, lL does noL
prohlblL Lhem elLher. ln facL, lL allows an exchange on Lhe basls of equallLy and
reclproclLy, frownlng only on forelgn compeLlLlon LhaL ls oofolt.
w1O kecoqolzes NeeJ to
ltotect weok cooomles
upon Lhe oLher hand, respondenLs malnLaln LhaL Lhe W1C lLself has some bullL-ln
advanLages Lo proLecL weak and developlng economles, whlch comprlse Lhe vasL
ma[orlLy of lLs members. unllke ln Lhe un where ma[or sLaLes have permanenL seaLs and
veLo powers ln Lhe SecurlLy Councll, ln Lhe W1C, declslons are made on Lhe basls of
soverelgn equallLy, wlLh each member's voLe equal ln welghL Lo LhaL of any oLher. 1here
ls no W1C equlvalenL of Lhe un SecurlLy Councll.
W1C decldes by consensus whenever posslble, oLherwlse, declslons of
Lhe MlnlsLerlal Conference and Lhe Ceneral Councll shall be Laken by Lhe
ma[orlLy of Lhe voLes casL, excepL ln cases of lnLerpreLaLlon of Lhe
AgreemenL or walver of Lhe obllgaLlon of a member whlch would requlre
Lhree fourLhs voLe. AmendmenLs would requlre Lwo Lhlrds voLe ln
general. AmendmenLs Lo Mln provlslons and Lhe AmendmenLs provlslon
wlll requlre assenL of all members. Any member may wlLhdraw from Lhe
AgreemenL upon Lhe explraLlon of slx monLhs from Lhe daLe of noLlce of
wlLhdrawals.
33

Pence, poor counLrles can proLecL Lhelr common lnLeresLs more effecLlvely Lhrough Lhe
W1C Lhan Lhrough one-on-one negoLlaLlons wlLh developed counLrles. WlLhln Lhe W1C,
developlng counLrles can form powerful blocs Lo push Lhelr economlc agenda more
declslvely Lhan ouLslde Lhe CrganlzaLlon. 1hls ls noL merely a maLLer of pracLlcal
alllances buL a negoLlaLlng sLraLegy rooLed ln law. 1hus, Lhe baslc prlnclples underlylng
Lhe W1C AgreemenL recognlze Lhe need of developlng counLrles llke Lhe hlllpplnes Lo
"share ln Lhe growLh ln lnLernaLlonal Lrade commeosotote wltb tbe oeeJs of tbelt
ecooomlc Jevelopmeot." 1hese baslc prlnclples are found ln Lhe preamble
34
of Lhe W1C
AgreemenL as follows:
1he arLles Lo Lhls AgreemenL,
8ecognlzlng LhaL Lhelr relaLlons ln Lhe fleld of Lrade and economlc
endeavour should be conducLed wlLh a vlew Lo ralslng sLandards of llvlng,
ensurlng full employmenL and a large and sLeadlly growlng volume of real
lncome and effecLlve demand, and expandlng Lhe producLlon of and
Lrade ln goods and servlces, whlle allowlng for Lhe opLlmal use of Lhe
world's resources ln accordance wlLh Lhe ob[ecLlve of susLalnable
developmenL, seeklng boLh Lo proLecL and preserve Lhe envlronmenL and
Lo enhance Lhe means for dolng so lo o moooet cooslsteot wltb tbelt
tespectlve oeeJs ooJ coocetos ot Jlffeteot levels of ecooomlc
Jevelopmeot,
8ecognlzlng furLher LhaL Lhere ls need for poslLlve efforLs deslgned Lo
ensure LhaL developlng counLrles, and especlally Lhe leasL developed
among Lhem, secure a sbote lo tbe qtowtb lo lotetootloool ttoJe
commeosotote wltb tbe oeeJs of tbelt ecooomlc Jevelopmeot,
8elng deslrous of conLrlbuLlng Lo Lhese ob[ecLlves by enLerlng lnLo
reclprocal and muLually advanLageous arrangemenLs dlrecLed Lo Lhe
subsLanLlal reducLlon of Larlffs and oLher barrlers Lo Lrade and Lo
Lhe ellmlootloo of Jlsctlmloototy tteotmeot lo lotetootloool ttoJe
telotloos,
8esolved, Lherefore, Lo develop an lnLegraLed, more vlable and durable
mulLllaLeral Lradlng sysLem encompasslng Lhe Ceneral AgreemenL on
1arlffs and 1rade, Lhe resulLs of pasL Lrade llberallzaLlon efforLs, and all of
Lhe resulLs of Lhe uruguay 8ound of MulLllaLeral 1rade negoLlaLlons,
ueLermlned Lo preserve Lhe baslc prlnclples and Lo furLher Lhe ob[ecLlves
underlylng Lhls mulLllaLeral Lradlng sysLem, . . . (emphasls supplled.)
5peclflc w1O ltovlsos
ltotect ueveloploq cooottles
So Loo, Lhe SollclLor Ceneral polnLs ouL LhaL pursuanL Lo and conslsLenL wlLh Lhe
foregolng baslc prlnclples, Lhe W1C AgreemenL granLs developlng counLrles a more
lenlenL LreaLmenL, glvlng Lhelr domesLlc lndusLrles some proLecLlon from Lhe rush of
forelgn compeLlLlon. 1hus, wlLh respecL Lo Larlffs ln general, preferenLlal LreaLmenL ls
glven Lo developlng counLrles ln Lerms of Lhe omooot of totlff teJoctloo and Lhe petloJ
wltblo wblcb tbe teJoctloo ls to be spteoJ oot. Speclflcally, CA11 requlres an average
Larlff teJoctloo tote of J6X fot JevelopeJ cooottles Lo be effecLed wlLhln a petloJ of slx
(6) yeots whlle developlng counLrles - lncludlng Lhe hlllpplnes - are tepolteJ to effect
oo ovetoqe totlff teJoctloo of ooly 24X wltblo teo (10) yeots.
ln respecL Lo Jomestlc subsldy, CA11 requlres JevelopeJ cooottles Lo reduce domesLlc
supporL Lo agrlculLural producLs by 20X ovet slx (6) yeots, as compared Lo ooly 1JX fot
Jeveloploq cooottles to be effecteJ wltblo teo (10) yeots.
ln regard Lo exporL subsldy for agrlculLural producLs, CA11 requlres developed counLrles
Lo reduce Lhelr budgeLary ouLlays for exporL subsldy by J6X and exporL volumes
recelvlng exporL subsldy by 21X wltblo o petloJ of slx (6) yeots. lor developlng
counLrles, however, Lhe reducLlon raLe ls only two-tbltJs of LhaL prescrlbed for
developed counLrles and a longer petloJ of teo (10) yeots wlLhln whlch Lo effecL such
reducLlon.
Moreover, CA11 lLself has provlded bullL-ln proLecLlon from unfalr forelgn compeLlLlon
and Lrade pracLlces lncludlng anLl-dumplng measures, counLervalllng measures and
safeguards agalnsL lmporL surges. Where local buslnesses are [eopardlzed by unfalr
forelgn compeLlLlon, Lhe hlllpplnes can avall of Lhese measures. 1here ls hardly
Lherefore any basls for Lhe sLaLemenL LhaL under Lhe W1C, local lndusLrles and
enLerprlses wlll all be wlped ouL and LhaL llllplnos wlll be deprlved of conLrol of Lhe
economy. CulLe Lhe conLrary, Lhe weaker slLuaLlons of developlng naLlons llke Lhe
hlllpplnes have been Laken lnLo accounL, Lhus, Lhere would be no basls Lo say LhaL ln
[olnlng Lhe W1C, Lhe respondenLs have gravely abused Lhelr dlscreLlon. 1rue, Lhey have
made a bold declslon Lo sLeer Lhe shlp of sLaLe lnLo Lhe yeL uncharLed sea of economlc
llberallzaLlon. 8uL such declslon cannoL be seL aslde on Lhe ground of grave abuse of
dlscreLlon, slmply because we dlsagree wlLh lL or slmply because we belleve only ln
oLher economlc pollcles. As earller sLaLed, Lhe CourL ln Laklng [urlsdlcLlon of Lhls case wlll
noL pass upon Lhe advanLages and dlsadvanLages of Lrade llberallzaLlon as an economlc
pollcy. lL wlll only perform lLs consLlLuLlonal duLy of deLermlnlng wheLher Lhe SenaLe
commlLLed grave abuse of dlscreLlon.
coostltotloo uoes Not
kole Oot lotelqo competltloo
lurLhermore, Lhe consLlLuLlonal pollcy of a "self-rellanL and lndependenL naLlonal
economy"
3S
does noL necessarlly rule ouL Lhe enLry of forelgn lnvesLmenLs, goods and
servlces. lL conLemplaLes nelLher "economlc secluslon" nor "mendlcancy ln Lhe
lnLernaLlonal communlLy." As explalned by ConsLlLuLlonal Commlssloner 8ernardo
vlllegas, sponsor of Lhls consLlLuLlonal pollcy:
cooomlc self-tellooce ls o ptlmoty objectlve of o Jeveloploq coootty tbot
ls keeoly owote of ovetJepeoJeoce oo extetool osslstooce fot eveo lts
most boslc oeeJs. lt Joes oot meoo oototky ot ecooomlc seclosloo, raLher,
lL means avoldlng mendlcancy ln Lhe lnLernaLlonal communlLy.
lndependence refers Lo Lhe freedom from undue forelgn conLrol of Lhe
naLlonal economy, especlally ln such sLraLeglc lndusLrles as ln Lhe
developmenL of naLural resources and publlc uLlllLles.
36

1he W1C rellance on "mosL favored naLlon," "naLlonal LreaLmenL," and "Lrade wlLhouL
dlscrlmlnaLlon" cannoL be sLruck down as unconsLlLuLlonal as ln facL Lhey are rules of
equallLy and reclproclLy LhaL apply Lo all W1C members. Aslde from envlslonlng a Lrade
pollcy based on "equallLy and reclproclLy,"
37
Lhe fundamenLal law encourages lndusLrles
LhaL are "compeLlLlve ln boLh domesLlc and forelgn markeLs," Lhereby demonsLraLlng a
clear pollcy agalnsL a shelLered domesLlc Lrade envlronmenL, buL one ln favor of Lhe
gradual developmenL of robusL lndusLrles LhaL can compeLe wlLh Lhe besL ln Lhe forelgn
markeLs. lndeed, llllplno managers and llllplno enLerprlses have shown capablllLy and
LenaclLy Lo compeLe lnLernaLlonally. And glven a free Lrade envlronmenL, llllplno
enLrepreneurs and managers ln Pongkong have demonsLraLed Lhe llllplno capaclLy Lo
grow and Lo prosper agalnsL Lhe besL offered under a pollcy of lolssez folte.
coostltotloo lovots coosomets,
Not loJosttles ot otetptlses
1he ConsLlLuLlon has noL really shown any unbalanced blas ln favor of any buslness or
enLerprlse, nor does lL conLaln any speclflc pronouncemenL LhaL llllplno companles
should be pampered wlLh a LoLal proscrlpLlon of forelgn compeLlLlon. Cn Lhe oLher
hand, respondenLs clalm LhaL W1C/CA11 alms Lo make avallable Lo Lhe llllplno
consumer Lhe besL goods and servlces obLalnable anywhere ln Lhe world aL Lhe mosL
reasonable prlces. ConsequenLly, Lhe quesLlon bolls down Lo wheLher W1C/CA11 wlll
favor Lhe general welfare of Lhe publlc aL large.
Wlll adherence Lo Lhe W1C LreaLy brlng Lhls ldeal (of favorlng Lhe general welfare) Lo
reallLy?
Wlll W1C/CA11 succeed ln promoLlng Lhe llllplnos' general welfare because lL wlll - as
promlsed by lLs promoLers - expand Lhe counLry's exporLs and generaLe more
employmenL?
Wlll lL brlng more prosperlLy, employmenL, purchaslng power and quallLy producLs aL
Lhe mosL reasonable raLes Lo Lhe llllplno publlc?
1he responses Lo Lhese quesLlons lnvolve "[udgmenL calls" by our pollcy makers, for
whlch Lhey are answerable Lo our people durlng approprlaLe elecLoral exerclses. Such
quesLlons and Lhe answers LhereLo are noL sub[ecL Lo [udlclal pronouncemenLs based on
grave abuse of dlscreLlon.
coostltotloo ueslqoeJ to Meet
lotote veots ooJ cootloqeocles
no doubL, Lhe W1C AgreemenL was noL yeL ln exlsLence when Lhe ConsLlLuLlon was
drafLed and raLlfled ln 1987. 1haL does noL mean however LhaL Lhe CharLer ls necessarlly
flawed ln Lhe sense LhaL lLs framers mlghL noL have anLlclpaLed Lhe advenL of a
borderless world of buslness. 8y Lhe same Loken, Lhe unlLed naLlons was noL yeL ln
exlsLence when Lhe 1933 ConsLlLuLlon became effecLlve. uld LhaL necessarlly mean LhaL
Lhe Lhen ConsLlLuLlon mlghL noL have conLemplaLed a dlmlnuLlon of Lhe absoluLeness of
soverelgnLy when Lhe hlllpplnes slgned Lhe un CharLer, Lhereby effecLlvely
surrenderlng parL of lLs conLrol over lLs forelgn relaLlons Lo Lhe declslons of varlous un
organs llke Lhe SecurlLy Councll?
lL ls noL dlfflculL Lo answer Lhls quesLlon. ConsLlLuLlons are deslgned Lo meeL noL only
Lhe vagarles of conLemporary evenLs. 1hey should be lnLerpreLed Lo cover even fuLure
and unknown clrcumsLances. lL ls Lo Lhe credlL of lLs drafLers LhaL a ConsLlLuLlon can
wlLhsLand Lhe assaulLs of blgoLs and lnfldels buL aL Lhe same Llme bend wlLh Lhe
refreshlng wlnds of change necesslLaLed by unfoldlng evenLs. As one emlnenL pollLlcal
law wrlLer and respecLed [urlsL
38
explalns:
1he ConsLlLuLlon musL be qulnLessenLlal raLher Lhan superflclal, Lhe rooL
and noL Lhe blossom, Lhe base and frame-work only of Lhe edlflce LhaL ls
yeL Lo rlse. lL ls buL Lhe core of Lhe dream LhaL musL Lake shape, noL ln a
Lwlnkllng by mandaLe of our delegaLes, buL slowly "ln Lhe cruclble of
llllplno mlnds and hearLs," where lL wlll ln Llme develop lLs slnews and
gradually gaLher lLs sLrengLh and flnally achleve lLs subsLance. ln flne, Lhe
ConsLlLuLlon cannoL, llke Lhe goddess ALhena, rlse full-grown from Lhe
brow of Lhe ConsLlLuLlonal ConvenLlon, nor can lL con[ure by mere flaL an
lnsLanL uLopla. lt most qtow wltb tbe soclety lt seeks to te-sttoctote ooJ
motcb opoce wltb tbe ptoqtess of tbe toce, Jtowloq ftom tbe vlclssltoJes
of blstoty tbe Jyoomlsm ooJ vltollty tbot wlll keep lt, fot ftom becomloq o
pettlfleJ tole, o polsloq, llvloq low ottooeJ to tbe beottbeot of tbe ootloo.
$%)*5 -++.&: $%& <$8 =>*&&?&7, 375 C&>)+B3,)4& D0E&*
1he W1C AgreemenL provldes LhaL "(e)ach Member shall ensure Lhe conformlLy of lLs
laws, regulaLlons and admlnlsLraLlve procedures wlLh lLs obllgaLlons as provlded ln Lhe
annexed AgreemenLs."
39
eLlLloners malnLaln LhaL Lhls underLaklng "unduly llmlLs,
resLrlcLs and lmpalrs hlllpplne soverelgnLy, speclflcally Lhe leglslaLlve power whlch
under Sec. 2, ArLlcle vl of Lhe 1987 hlllpplne ConsLlLuLlon ls vesLed ln Lhe Congress of
Lhe hlllpplnes. lL ls an assaulL on Lhe soverelgn powers of Lhe hlllpplnes because Lhls
means LhaL Congress could noL pass leglslaLlon LhaL wlll be good for our naLlonal lnLeresL
and general welfare lf such leglslaLlon wlll noL conform wlLh Lhe W1C AgreemenL, whlch
noL only relaLes Lo Lhe Lrade ln goods . . . buL also Lo Lhe flow of lnvesLmenLs and money
. . . as well as Lo a whole slew of agreemenLs on soclo-culLural maLLers . . .
40

More speclflcally, peLlLloners clalm LhaL sald W1C provlso derogaLes from Lhe power Lo
Lax, whlch ls lodged ln Lhe Congress.
41
And whlle Lhe ConsLlLuLlon allows Congress Lo
auLhorlze Lhe resldenL Lo flx Larlff raLes, lmporL and exporL quoLas, Lonnage and
wharfage dues, and oLher duLles or lmposLs, such auLhorlLy ls sub[ecL Lo "speclfled llmlLs
and . . . such llmlLaLlons and resLrlcLlons" as Congress may provlde,
42
as ln facL lL dld
under Sec. 401 of Lhe 1arlff and CusLoms Code.
5ovetelqoty llmlteJ by
lotetootloool low ooJ 1teotles
1hls CourL noLes and appreclaLes Lhe feroclLy and passlon by whlch peLlLloners sLressed
Lhelr argumenLs on Lhls lssue. Powever, whlle soverelgnLy has LradlLlonally been
deemed absoluLe and all-encompasslng on Lhe domesLlc level, lL ls however sub[ecL Lo
resLrlcLlons and llmlLaLlons volunLarlly agreed Lo by Lhe hlllpplnes, expressly or
lmplledly, as a member of Lhe famlly of naLlons. unquesLlonably, Lhe ConsLlLuLlon dld
noL envlslon a hermlL-Lype lsolaLlon of Lhe counLry from Lhe resL of Lhe world. ln lLs
ueclaraLlon of rlnclples and SLaLe ollcles, Lhe ConsLlLuLlon "adopLs Lhe generally
accepLed prlnclples of lnLernaLlonal law as parL of Lhe law of Lhe land, and adheres Lo
Lhe pollcy of peace, equallLy, [usLlce, freedom, cooperaLlon and amlLy, wlLh all
naLlons."
43
8y Lhe docLrlne of lncorporaLlon, Lhe counLry ls bound by generally accepLed
prlnclples of lnLernaLlonal law, whlch are consldered Lo be auLomaLlcally parL of our own
laws.
44
Cne of Lhe oldesL and mosL fundamenLal rules ln lnLernaLlonal law ls pocto soot
setvooJo - lnLernaLlonal agreemenLs musL be performed ln good falLh. "A LreaLy
engagemenL ls noL a mere moral obllgaLlon buL creaLes a legally blndlng obllgaLlon on
Lhe parLles . . . A sLaLe whlch has conLracLed valld lnLernaLlonal obllgaLlons ls bound Lo
make ln lLs leglslaLlons such modlflcaLlons as may be necessary Lo ensure Lhe fulflllmenL
of Lhe obllgaLlons underLaken."
4S

8y Lhelr lnherenL naLure, LreaLles really llmlL or resLrlcL Lhe absoluLeness of soverelgnLy.
8y Lhelr volunLary acL, naLlons may surrender some aspecLs of Lhelr sLaLe power ln
exchange for greaLer beneflLs granLed by or derlved from a convenLlon or pacL. AfLer all,
sLaLes, llke lndlvlduals, llve wlLh coequals, and ln pursulL of muLually covenanLed
ob[ecLlves and beneflLs, Lhey also commonly agree Lo llmlL Lhe exerclse of Lhelr
oLherwlse absoluLe rlghLs. 1hus, LreaLles have been used Lo record agreemenLs beLween
SLaLes concernlng such wldely dlverse maLLers as, for example, Lhe lease of naval bases,
Lhe sale or cesslon of LerrlLory, Lhe LermlnaLlon of war, Lhe regulaLlon of conducL of
hosLlllLles, Lhe formaLlon of alllances, tbe teqolotloo of commetclol telotloos, Lhe seLLllng
of clalms, Lhe laylng down of rules governlng conducL ln peace and Lhe esLabllshmenL of
lnLernaLlonal organlzaLlons.
46
1he soverelgnLy of a sLaLe Lherefore cannoL ln facL and ln
reallLy be consldered absoluLe. CerLaln resLrlcLlons enLer lnLo Lhe plcLure: (1) llmlLaLlons
lmposed by Lhe very naLure of membershlp ln Lhe famlly of naLlons and (2) llmlLaLlons
lmposed by LreaLy sLlpulaLlons. As apLly puL by !ohn l. kennedy, "1oday, no naLlon can
bulld lLs desLlny alone. 1he age of self-sufflclenL naLlonallsm ls over. 1he age of
lnLerdependence ls here."
47

uN cbottet ooJ Otbet 1teotles
llmlt 5ovetelqoty
1hus, when Lhe hlllpplnes [olned Lhe unlLed naLlons as one of lLs 31 charLer members,
lL consenLed Lo resLrlcL lLs soverelgn rlghLs under Lhe "concepL of soverelgnLy as auLo-
llmlLaLlon."
47
-A under ArLlcle 2 of Lhe un CharLer, "(a)ll members shall glve Lhe unlLed
naLlons every asslsLance ln any acLlon lL Lakes ln accordance wlLh Lhe presenL CharLer,
and shall refraln from glvlng asslsLance Lo any sLaLe agalnsL whlch Lhe unlLed naLlons ls
Laklng prevenLlve or enforcemenL acLlon." Such asslsLance lncludes paymenL of lLs
correspondlng share noL merely ln admlnlsLraLlve expenses buL also ln expendlLures for
Lhe peace-keeplng operaLlons of Lhe organlzaLlon. ln lLs advlsory oplnlon of !uly 20,
1961, Lhe lnLernaLlonal CourL of !usLlce held LhaL money used by Lhe unlLed naLlons
Lmergency lorce ln Lhe Mlddle LasL and ln Lhe Congo were "expenses of Lhe unlLed
naLlons" under ArLlcle 17, paragraph 2, of Lhe un CharLer. Pence, all lLs members musL
bear Lhelr correspondlng share ln such expenses. ln Lhls sense, Lhe hlllpplne Congress ls
resLrlcLed ln lLs power Lo approprlaLe. lL ls compelled Lo approprlaLe funds wheLher lL
agrees wlLh such peace-keeplng expenses or noL. So Loo, under ArLlcle 103 of Lhe sald
CharLer, Lhe un and lLs represenLaLlves en[oy dlplomaLlc prlvlleges and lmmunlLles,
Lhereby llmlLlng agaln Lhe exerclse of soverelgnLy of members wlLhln Lhelr own LerrlLory.
AnoLher example: alLhough "soverelgn equallLy" and "domesLlc [urlsdlcLlon" of all
members are seL forLh as underlylng prlnclples ln Lhe un CharLer, such provlsos are
however sub[ecL Lo enforcemenL measures declded by Lhe SecurlLy Councll for Lhe
malnLenance of lnLernaLlonal peace and securlLy under ChapLer vll of Lhe CharLer. A
flnal example: under ArLlcle 103, "(l)n Lhe evenL of a confllcL beLween Lhe obllgaLlons of
Lhe Members of Lhe unlLed naLlons under Lhe presenL CharLer and Lhelr obllgaLlons
under any oLher lnLernaLlonal agreemenL, Lhelr obllgaLlon under Lhe presenL charLer
shall prevall," Lhus unquesLlonably denylng Lhe hlllpplnes - as a member - Lhe
soverelgn power Lo make a cholce as Lo whlch of confllcLlng obllgaLlons, lf any, Lo honor.
AparL from Lhe un 1reaLy, Lhe hlllpplnes has enLered lnLo many oLher lnLernaLlonal
pacLs - boLh bllaLeral and mulLllaLeral - LhaL lnvolve llmlLaLlons on hlllpplne
soverelgnLy. 1hese are enumeraLed by Lhe SollclLor Ceneral ln hls Compllance daLed
CcLober 24, 1996, as follows:
(a) 8llaLeral convenLlon wlLh Lhe unlLed SLaLes regardlng Laxes on
lncome, where Lhe hlllpplnes agreed, among oLhers, Lo exempL from
Lax, lncome recelved ln Lhe hlllpplnes by, among oLhers, Lhe lederal
8eserve 8ank of Lhe unlLed SLaLes, Lhe LxporL/lmporL 8ank of Lhe unlLed
SLaLes, Lhe Cverseas rlvaLe lnvesLmenL CorporaLlon of Lhe unlLed SLaLes.
Llkewlse, ln sald convenLlon, wages, salarles and slmllar remuneraLlons
pald by Lhe unlLed SLaLes Lo lLs clLlzens for labor and personal servlces
performed by Lhem as employees or offlclals of Lhe unlLed SLaLes are
exempL from lncome Lax by Lhe hlllpplnes.
(b) 8llaLeral agreemenL wlLh 8elglum, provldlng, among oLhers, for Lhe
avoldance of double LaxaLlon wlLh respecL Lo Laxes on lncome.
(c) 8llaLeral convenLlon wlLh Lhe klngdom of Sweden for Lhe avoldance of
double LaxaLlon.
(d) 8llaLeral convenLlon wlLh Lhe lrench 8epubllc for Lhe avoldance of
double LaxaLlon.
(e) 8llaLeral alr LransporL agreemenL wlLh korea where Lhe hlllpplnes
agreed Lo exempL from all cusLoms duLles, lnspecLlon fees and oLher
duLles or Laxes alrcrafLs of SouLh korea and Lhe regular equlpmenL, spare
parLs and supplles arrlvlng wlLh sald alrcrafLs.
(f) 8llaLeral alr servlce agreemenL wlLh !apan, where Lhe hlllpplnes
agreed Lo exempL from cusLoms duLles, exclse Laxes, lnspecLlon fees and
oLher slmllar duLles, Laxes or charges fuel, lubrlcaLlng olls, spare parLs,
regular equlpmenL, sLores on board !apanese alrcrafLs whlle on hlllpplne
soll.
(g) 8llaLeral alr servlce agreemenL wlLh 8elglum where Lhe hlllpplnes
granLed 8elglan alr carrlers Lhe same prlvlleges as Lhose granLed Lo
!apanese and korean alr carrlers under separaLe alr servlce agreemenLs.
(h) 8llaLeral noLes wlLh lsrael for Lhe abollLlon of LranslL and vlslLor vlsas
where Lhe hlllpplnes exempLed lsraell naLlonals from Lhe requlremenL of
obLalnlng LranslL or vlslLor vlsas for a so[ourn ln Lhe hlllpplnes noL
exceedlng 39 days.
(l) 8llaLeral agreemenL wlLh lrance exempLlng lrench naLlonals from Lhe
requlremenL of obLalnlng LranslL and vlslLor vlsa for a so[ourn noL
exceedlng 39 days.
([) MulLllaLeral ConvenLlon on Speclal Mlsslons, where Lhe hlllpplnes
agreed LhaL premlses of Speclal Mlsslons ln Lhe hlllpplnes are lnvlolable
and lLs agenLs can noL enLer sald premlses wlLhouL consenL of Lhe Pead
of Mlsslon concerned. Speclal Mlsslons are also exempLed from cusLoms
duLles, Laxes and relaLed charges.
(k) MulLllaLeral convenLlon on Lhe Law of 1reaLles. ln Lhls convenLlon, Lhe
hlllpplnes agreed Lo be governed by Lhe vlenna ConvenLlon on Lhe Law
of 1reaLles.
(l) ueclaraLlon of Lhe resldenL of Lhe hlllpplnes accepLlng compulsory
[urlsdlcLlon of Lhe lnLernaLlonal CourL of !usLlce. 1he lnLernaLlonal CourL
of !usLlce has [urlsdlcLlon ln all legal dlspuLes concernlng Lhe
lnLerpreLaLlon of a LreaLy, any quesLlon of lnLernaLlonal law, Lhe exlsLence
of any facL whlch, lf esLabllshed, would consLlLuLe a breach "of
lnLernaLlonal obllgaLlon."
ln Lhe foregolng LreaLles, Lhe hlllpplnes has effecLlvely agreed Lo llmlL Lhe exerclse of lLs
soverelgn powers of LaxaLlon, emlnenL domaln and pollce power. 1he underlylng
conslderaLlon ln Lhls parLlal surrender of soverelgnLy ls Lhe reclprocal commlLmenL of
Lhe oLher conLracLlng sLaLes ln granLlng Lhe same prlvllege and lmmunlLles Lo Lhe
hlllpplnes, lLs offlclals and lLs clLlzens. 1he same reclproclLy characLerlzes Lhe hlllpplne
commlLmenLs under W1C-CA11.
lnLernaLlonal LreaLles, wheLher relaLlng Lo nuclear dlsarmamenL, human
rlghLs, Lhe envlronmenL, Lhe law of Lhe sea, or Lrade, consLraln domesLlc
pollLlcal soverelgnLy Lhrough Lhe assumpLlon of exLernal obllgaLlons. 8uL
unless anarchy ln lnLernaLlonal relaLlons ls preferred as an alLernaLlve, ln
mosL cases we accepL LhaL Lhe beneflLs of Lhe reclprocal obllgaLlons
lnvolved ouLwelgh Lhe cosLs assoclaLed wlLh any loss of pollLlcal
soverelgnLy. (1)rade LreaLles LhaL sLrucLure relaLlons by reference Lo
durable, well-deflned subsLanLlve norms and ob[ecLlve dlspuLe resoluLlon
procedures reduce Lhe rlsks of larger counLrles explolLlng raw economlc
power Lo bully smaller counLrles, by sub[ecLlng power relaLlons Lo some
form of legal orderlng. ln addlLlon, smaller counLrles Lyplcally sLand Lo
galn dlsproporLlonaLely from Lrade llberallzaLlon. 1hls ls due Lo Lhe slmple
facL LhaL llberallzaLlon wlll provlde access Lo a larger seL of poLenLlal new
Lradlng relaLlonshlp Lhan ln case of Lhe larger counLry galnlng enhanced
success Lo Lhe smaller counLry's markeL.
48

1he polnL ls LhaL, as shown by Lhe foregolng LreaLles, a porLlon of soverelgnLy may be
walved wlLhouL vlolaLlng Lhe ConsLlLuLlon, based on Lhe raLlonale LhaL Lhe hlllpplnes
"adopLs Lhe generally accepLed prlnclples of lnLernaLlonal law as parL of Lhe law of Lhe
land and adheres Lo Lhe pollcy of . . . cooperaLlon and amlLy wlLh all naLlons."
(0.*,% -++.&: $%& <$8 =>*&&?&7, 375 !.5)6)3B D0E&*
eLlLloners aver LhaL paragraph 1, ArLlcle 34 of Lhe Ceneral rovlslons and 8aslc
rlnclples of Lhe AgreemenL on 1rade-8elaLed AspecLs of lnLellecLual roperLy 8lghLs
(18lS)
49
lnLrudes on Lhe power of Lhe Supreme CourL Lo promulgaLe rules concernlng
pleadlng, pracLlce and procedures.
S0

1o undersLand Lhe scope and meanlng of ArLlcle 34, 18lS,
S1
lL wlll be frulLful Lo resLaLe
lLs full LexL as follows:
ArLlcle 34
ltocess loteots: 8otJeo of ltoof
1. lor Lhe purposes of clvll proceedlngs ln respecL of Lhe lnfrlngemenL of
Lhe rlghLs of Lhe owner referred Lo ln paragraph 1 (b) of ArLlcle 28, lf Lhe
sub[ecL maLLer of a paLenL ls a process for obLalnlng a producL, Lhe
[udlclal auLhorlLles shall have Lhe auLhorlLy Lo order Lhe defendanL Lo
prove LhaL Lhe process Lo obLaln an ldenLlcal producL ls dlfferenL from Lhe
paLenLed process. 1herefore, Members shall provlde, ln aL leasL one of
Lhe followlng clrcumsLances, LhaL any ldenLlcal producL when produced
wlLhouL Lhe consenL of Lhe paLenL owner shall, ln Lhe absence of proof Lo
Lhe conLrary, be deemed Lo have been obLalned by Lhe paLenLed process:
(a) lf Lhe producL obLalned by Lhe paLenLed process ls new,
(b) lf Lhere ls a subsLanLlal llkellhood LhaL Lhe ldenLlcal
producL was made by Lhe process and Lhe owner of Lhe
paLenL has been unable Lhrough reasonable efforLs Lo
deLermlne Lhe process acLually used.
2. Any Member shall be free Lo provlde LhaL Lhe burden of proof
lndlcaLed ln paragraph 1 shall be on Lhe alleged lnfrlnger only lf Lhe
condlLlon referred Lo ln subparagraph (a) ls fulfllled or only lf Lhe
condlLlon referred Lo ln subparagraph (b) ls fulfllled.
3. ln Lhe adducLlon of proof Lo Lhe conLrary, Lhe leglLlmaLe lnLeresLs of
defendanLs ln proLecLlng Lhelr manufacLurlng and buslness secreLs shall
be Laken lnLo accounL.
lrom Lhe above, a W1C Member ls requlred Lo provlde a rule of dlspuLable (noL Lhe
words "ln Lhe absence of proof Lo Lhe conLrary") presumpLlon LhaL a producL shown Lo
be ldenLlcal Lo one produced wlLh Lhe use of a paLenLed process shall be deemed Lo
have been obLalned by Lhe (lllegal) use of Lhe sald paLenLed process, (1) where such
producL obLalned by Lhe paLenLed producL ls new, or (2) where Lhere ls "subsLanLlal
llkellhood" LhaL Lhe ldenLlcal producL was made wlLh Lhe use of Lhe sald paLenLed
process buL Lhe owner of Lhe paLenL could noL deLermlne Lhe exacL process used ln
obLalnlng such ldenLlcal producL. Pence, Lhe "burden of proof" conLemplaLed by ArLlcle
34 should acLually be undersLood as Lhe duLy of Lhe alleged paLenL lnfrlnger Lo
overLhrow such presumpLlon. Such burden, properly undersLood, acLually refers Lo Lhe
"burden of evldence" (burden of golng forward) placed on Lhe producer of Lhe ldenLlcal
(or fake) producL Lo show LhaL hls producL was produced wlLhouL Lhe use of Lhe
paLenLed process.
1he foregolng noLwlLhsLandlng, Lhe paLenL owner sLlll has Lhe "burden of proof" slnce,
regardless of Lhe presumpLlon provlded under paragraph 1 of ArLlcle 34, such owner sLlll
has Lo lnLroduce evldence of Lhe exlsLence of Lhe alleged ldenLlcal producL, Lhe facL LhaL
lL ls "ldenLlcal" Lo Lhe genulne one produced by Lhe paLenLed process and Lhe facL of
"newness" of Lhe genulne producL or Lhe facL of "subsLanLlal llkellhood" LhaL Lhe
ldenLlcal producL was made by Lhe paLenLed process.
1he foregolng should really presenL no problem ln changlng Lhe rules of evldence as Lhe
presenL law on Lhe sub[ecL, 8epubllc AcL no. 163, as amended, oLherwlse known as Lhe
aLenL Law, provldes a slmllar presumpLlon ln cases of lnfrlngemenL of paLenLed deslgn
or uLlllLy model, Lhus:
Sec. 60. loftloqemeot. - lnfrlngemenL of a deslgn paLenL or of a paLenL
for uLlllLy model shall conslsL ln unauLhorlzed copylng of Lhe paLenLed
deslgn or uLlllLy model for Lhe purpose of Lrade or lndusLry ln Lhe arLlcle
or producL and ln Lhe maklng, uslng or selllng of Lhe arLlcle or producL
copylng Lhe paLenLed deslgn or uLlllLy model. lJeotlty ot sobstootlol
lJeotlty wltb tbe poteoteJ Jeslqo ot otlllty moJel sboll coostltote evlJeoce
of copyloq. (emphasls supplled)
Moreover, lL should be noLed LhaL Lhe requlremenL of ArLlcle 34 Lo provlde a dlspuLable
presumpLlon applles only lf (1) Lhe producL obLalned by Lhe paLenLed process ln nLW or
(2) Lhere ls a subsLanLlal llkellhood LhaL Lhe ldenLlcal producL was made by Lhe process
and Lhe process owner has noL been able Lhrough reasonable efforL Lo deLermlne Lhe
process used. Where elLher of Lhese Lwo provlsos does noL obLaln, members shall be
free Lo deLermlne Lhe approprlaLe meLhod of lmplemenLlng Lhe provlslons of 18lS
wlLhln Lhelr own lnLernal sysLems and processes.
8y and large, Lhe argumenLs adduced ln connecLlon wlLh our dlsposlLlon of Lhe Lhlrd
lssue - derogaLlon of leglslaLlve power - wlll apply Lo Lhls fourLh lssue also. Sufflce lL
Lo say LhaL Lhe reclproclLy clause more Lhan [usLlfles such lnLruslon, lf any acLually exlsLs.
8esldes, ArLlcle 34 does noL conLaln an unreasonable burden, conslsLenL as lL ls wlLh due
process and Lhe concepL of adversarlal dlspuLe seLLlemenL lnherenL ln our [udlclal
sysLem.
So Loo, slnce Lhe hlllpplne ls a slgnaLory Lo mosL lnLernaLlonal convenLlons on paLenLs,
Lrademarks and copyrlghLs, Lhe ad[usLmenL ln leglslaLlon and rules of procedure wlll noL
be subsLanLlal.
S2

()F,% -++.&: 1076.**&76& 87B9 )7 ,%& <$8 =>*&&?&7, 375
A0, )7 8,%&* /06.?&7,+ 107,3)7&5 )7 ,%& ()73B =6,
eLlLloners allege LhaL Lhe SenaLe concurrence ln Lhe W1C AgreemenL and lLs annexes
- buL noL ln Lhe oLher documenLs referred Lo ln Lhe llnal AcL, namely Lhe MlnlsLerlal
ueclaraLlon and ueclslons and Lhe undersLandlng on CommlLmenLs ln llnanclal Servlces
- ls defecLlve and lnsufflclenL and Lhus consLlLuLes abuse of dlscreLlon. 1hey submlL
LhaL such concurrence ln Lhe W1C AgreemenL olooe ls flawed because lL ls ln effecL a
re[ecLlon of Lhe llnal AcL, whlch ln Lurn was Lhe documenL slgned by SecreLary navarro,
ln represenLaLlon of Lhe 8epubllc upon auLhorlLy of Lhe resldenL. 1hey conLend LhaL Lhe
second leLLer of Lhe resldenL Lo Lhe SenaLe
S3
whlch enumeraLed whaL consLlLuLes Lhe
llnal AcL should have been Lhe sub[ecL of concurrence of Lhe SenaLe.
"A flool oct, someLlmes called ptotocol Je clotote, ls an lnsLrumenL whlch records Lhe
wlndlng up of Lhe proceedlngs of a dlplomaLlc conference and usually lncludes a
reproducLlon of Lhe LexLs of LreaLles, convenLlons, recommendaLlons and oLher acLs
agreed upon and slgned by Lhe plenlpoLenLlarles aLLendlng Lhe conference."
S4
lL ls noL
Lhe LreaLy lLself. lL ls raLher a summary of Lhe proceedlngs of a proLracLed conference
whlch may have Laken place over several years. 1he LexL of Lhe "llnal AcL Lmbodylng Lhe
8esulLs of Lhe uruguay 8ound of MulLllaLeral 1rade negoLlaLlons" ls conLalned ln [usL
one page
SS
ln vol. l of Lhe 36-volume utoqooy koooJ of Moltllotetol 1toJe Neqotlotloos.
8y slgnlng sald llnal AcL, SecreLary navarro as represenLaLlve of Lhe 8epubllc of Lhe
hlllpplnes underLook:
(a) Lo submlL, as approprlaLe, Lhe W1C AgreemenL for Lhe conslderaLlon
of Lhelr respecLlve compeLenL auLhorlLles wlLh a vlew Lo seeklng approval
of Lhe AgreemenL ln accordance wlLh Lhelr procedures, and
(b) Lo adopL Lhe MlnlsLerlal ueclaraLlons and ueclslons.
1he assalled SenaLe 8esoluLlon no. 97 expressed concurrence ln exacLly whaL Lhe llnal
AcL requlred from lLs slgnaLorles, namely, concurrence of Lhe SenaLe ln Lhe W1C
AgreemenL.
1he MlnlsLerlal ueclaraLlons and ueclslons were deemed adopLed wlLhouL need for
raLlflcaLlon. 1hey were approved by Lhe mlnlsLers by vlrLue of ArLlcle xxv: 1 of CA11
whlch provldes LhaL represenLaLlves of Lhe members can meeL "Lo glve effecL Lo Lhose
provlslons of Lhls AgreemenL whlch lnvoke [olnL acLlon, and generally wlLh a vlew Lo
faclllLaLlng Lhe operaLlon and furLherlng Lhe ob[ecLlves of Lhls AgreemenL."
S6

1he undersLandlng on CommlLmenLs ln llnanclal Servlces also approved ln Marrakesh
does noL apply Lo Lhe hlllpplnes. lL applles only Lo Lhose 27 Members whlch "have
lndlcaLed ln Lhelr respecLlve schedules of commlLmenLs on sLandsLlll, ellmlnaLlon of
monopoly, expanslon of operaLlon of exlsLlng flnanclal servlce suppllers, Lemporary
enLry of personnel, free Lransfer and processlng of lnformaLlon, and naLlonal LreaLmenL
wlLh respecL Lo access Lo paymenL, clearlng sysLems and reflnanclng avallable ln Lhe
normal course of buslness."
S7

Cn Lhe oLher hand, Lhe W1C AgreemenL lLself expresses whaL mulLllaLeral agreemenLs
are deemed lncluded as lLs lnLegral parLs,
S8
as follows:
ArLlcle ll
5cope of tbe w1O
1. 1he W1C shall provlde Lhe common lnsLlLuLlonal frame-work for Lhe
conducL of Lrade relaLlons among lLs Members ln maLLers Lo Lhe
agreemenLs and assoclaLed legal lnsLrumenLs lncluded ln Lhe Annexes Lo
Lhls AgreemenL.
2. 1he AgreemenLs and assoclaLed legal lnsLrumenLs lncluded ln Annexes
1, 2, and 3, (herelnafLer referred Lo as "MulLllaLeral AgreemenLs") are
lnLegral parLs of Lhls AgreemenL, blndlng on all Members.
3. 1he AgreemenLs and assoclaLed legal lnsLrumenLs lncluded ln Annex 4
(herelnafLer referred Lo as "lurllaLeral 1rade AgreemenLs") are also parL
of Lhls AgreemenL for Lhose Members LhaL have accepLed Lhem, and are
blndlng on Lhose Members. 1he lurllaLeral 1rade AgreemenLs do noL
creaLe elLher obllgaLlon or rlghLs for Members LhaL have noL accepLed
Lhem.
4. 1he Ceneral AgreemenL on 1arlffs and 1rade 1994 as speclfled ln annex
1A (herelnafLer referred Lo as "CA11 1994") ls legally dlsLlncL from Lhe
Ceneral AgreemenL on 1arlffs and 1rade, daLed 30 CcLober 1947,
annexed Lo Lhe llnal AcL adopLed aL Lhe concluslon of Lhe Second Sesslon
of Lhe reparaLory CommlLLee of Lhe unlLed naLlons Conference on
1rade and LmploymenL, as subsequenLly recLlfled, amended or modlfled
(herelnafLer referred Lo as "CA11 1947").
lL should be added LhaL Lhe SenaLe was well-aware of whaL lL was concurrlng ln as
shown by Lhe members' dellberaLlon on AugusL 23, 1994. AfLer readlng Lhe leLLer of
resldenL 8amos daLed AugusL 11, 1994,
S9
Lhe senaLors
of Lhe 8epubllc mlnuLely dlssecLed whaL Lhe SenaLe was concurrlng ln, as follows:
60

1PL CPAl8MAn: ?es. now, Lhe quesLlon of Lhe valldlLy of Lhe submlsslon
came up ln Lhe flrsL day hearlng of Lhls CommlLLee yesLerday. Was Lhe
observaLlon made by SenaLor 1anada LhaL whaL was submlLLed Lo Lhe
SenaLe was noL Lhe agreemenL on esLabllshlng Lhe World 1rade
CrganlzaLlon by Lhe flnal acL of Lhe uruguay 8ound whlch ls noL Lhe same
as Lhe agreemenL esLabllshlng Lhe World 1rade CrganlzaLlon? And on
LhaL basls, SenaLor 1olenLlno ralsed a polnL of order whlch, however, he
agreed Lo wlLhdraw upon undersLandlng LhaL hls suggesLlon for an
alLernaLlve soluLlon aL LhaL Llme was accepLable. 1haL suggesLlon was Lo
LreaL Lhe proceedlngs of Lhe CommlLLee as belng ln Lhe naLure of
brleflngs for SenaLors unLll Lhe quesLlon of Lhe submlsslon could be
clarlfled.
And so, SecreLary 8omulo, ln effecL, ls Lhe resldenL submlLLlng a new . . .
ls he maklng a new submlsslon whlch lmproves on Lhe clarlLy of Lhe flrsL
submlsslon?
M8. 8CMuLC: Mr. Chalrman, Lo make sure LhaL lL ls clear cuL and Lhere
should be no mlsundersLandlng, lL was hls lnLenLlon Lo clarlfy all maLLers
by glvlng Lhls leLLer.
1PL CPAl8MAn: 1hank you.
Can Lhls CommlLLee hear from SenaLor 1anada and laLer on SenaLor
1olenLlno slnce Lhey were Lhe ones LhaL ralsed Lhls quesLlon yesLerday?
SenaLor 1anada, please.
5N. 1ANAuA: 1book yoo, Mt. cboltmoo.
8oseJ oo wbot 5ectetoty komolo bos teoJ, lt woolJ oow cleotly oppeot
tbot wbot ls beloq sobmltteJ to tbe 5eoote fot totlflcotloo ls oot tbe llool
Act of tbe utoqooy koooJ, bot totbet tbe Aqteemeot oo tbe wotlJ 1toJe
Otqoolzotloo os well os tbe Mlolstetlol ueclototloos ooJ ueclsloos, ooJ
tbe uoJetstooJloq ooJ commltmeots lo lloooclol 5etvlces.
l om oow sotlsfleJ wltb tbe wotJloq of tbe oew sobmlssloo of lteslJeot
komos.
SLn. 1ARAuA. . . . of resldenL 8amos, Mr. Chalrman.
1PL CPAl8MAn. 1hank you, SenaLor 1anada. Can we hear from SenaLor
1olenLlno? And afLer hlm SenaLor nepLall Conzales and SenaLor Llna.
5N. 1OlN1lNO, Mt. cboltmoo, l bove oot seeo tbe oew sobmlssloo
octoolly ttoosmltteJ to os bot l sow tbe Jtoft of bls eotllet, ooJ l tblok lt
oow complles wltb tbe ptovlsloos of tbe coostltotloo, ooJ wltb tbe llool
Act ltself . 1be coostltotloo Joes oot tepolte os to totlfy tbe llool Act. lt
tepoltes os to totlfy tbe Aqteemeot wblcb ls oow beloq sobmltteJ. 1be
llool Act ltself speclfles wbot ls qoloq to be sobmltteJ to wltb tbe
qovetomeots of tbe pottlclpoots.
lo potoqtopb 2 of tbe llool Act, we teoJ ooJ l poote:
8y slqoloq tbe pteseot llool Act, tbe tepteseototlves oqtee: (o) to sobmlt
os opptoptlote tbe w1O Aqteemeot fot tbe cooslJetotloo of tbe
tespectlve competeot ootbotltles wltb o vlew to seekloq opptovol of tbe
Aqteemeot lo occotJooce wltb tbelt ptoceJotes.
lo otbet wotJs, lt ls oot tbe llool Act tbot wos oqteeJ to be sobmltteJ to
tbe qovetomeots fot totlflcotloo ot occeptooce os wbotevet tbelt
coostltotloool ptoceJotes moy ptovlJe bot lt ls tbe wotlJ 1toJe
Otqoolzotloo Aqteemeot. AoJ lf tbot ls tbe ooe tbot ls beloq sobmltteJ
oow, l tblok lt sotlsfles botb tbe coostltotloo ooJ tbe llool Act ltself .
1hank you, Mr. Chalrman.
1PL CPAl8MAn. 1hank you, SenaLor 1olenLlno, May l call on SenaLor
Conzales.
5N. CON2Al5. Mt. cboltmoo, my vlews oo tbls mottet ote olteoJy o
mottet of tecotJ. AoJ tbey boJ beeo oJepootely teflecteJ lo tbe jootool of
yestetJoy's sessloo ooJ l Joo't see ooy oeeJ fot tepeotloq tbe some.
Now, l woolJ cooslJet tbe oew sobmlssloo os oo oct ex oboJoote cootelo.
1PL CPAl8MAn. 1hank you, SenaLor Conzales. SenaLor Llna, do you wanL
Lo make any commenL on Lhls?
5N. llNA. Mt. lteslJeot, l oqtee wltb tbe obsetvotloo jost moJe by
5eootot Coozoles oot of tbe obooJooce of poestloo. 1beo tbe oew
sobmlssloo ls, l belleve, stotloq tbe obvloos ooJ tbetefote l bove oo
fottbet commeot to moke.
plloqoe
ln praylng for Lhe nulllflcaLlon of Lhe hlllpplne raLlflcaLlon of Lhe W1C AgreemenL,
peLlLloners are lnvoklng Lhls CourL's consLlLuLlonally lmposed duLy "Lo deLermlne
wheLher or noL Lhere has been grave abuse of dlscreLlon amounLlng Lo lack or excess of
[urlsdlcLlon" on Lhe parL of Lhe SenaLe ln glvlng lLs concurrence Lhereln vla SenaLe
8esoluLlon no. 97. rocedurally, a wrlL of cettlototl grounded on grave abuse of
dlscreLlon may be lssued by Lhe CourL under 8ule 63 of Lhe 8ules of CourL when lL ls
amply shown LhaL peLlLloners have no oLher plaln, speedy and adequaLe remedy ln Lhe
ordlnary course of law.
8y grave abuse of dlscreLlon ls meanL such caprlclous and whlmslcal exerclse of
[udgmenL as ls equlvalenL Lo lack of [urlsdlcLlon.
61
Mere abuse of dlscreLlon ls noL
enough. lL musL be qtove abuse of dlscreLlon as when Lhe power ls exerclsed ln an
arblLrary or despoLlc manner by reason of passlon or personal hosLlllLy, and musL be so
paLenL and so gross as Lo amounL Lo an evaslon of a poslLlve duLy or Lo a vlrLual refusal
Lo perform Lhe duLy en[olned or Lo acL aL all ln conLemplaLlon of law.
62
lallure on Lhe
parL of Lhe peLlLloner Lo show grave abuse of dlscreLlon wlll resulL ln Lhe dlsmlssal of Lhe
peLlLlon.
63

ln renderlng Lhls ueclslon, Lhls CourL never forgeLs LhaL Lhe SenaLe, whose acL ls under
revlew, ls one of Lwo soverelgn houses of Congress and ls Lhus enLlLled Lo greaL respecL
ln lLs acLlons. lL ls lLself a consLlLuLlonal body lndependenL and coordlnaLe, and Lhus lLs
acLlons are presumed regular and done ln good falLh. unless convlnclng proof and
persuaslve argumenLs are presenLed Lo overLhrow such presumpLlons, Lhls CourL wlll
resolve every doubL ln lLs favor. uslng Lhe foregolng well-accepLed deflnlLlon of grave
abuse of dlscreLlon and Lhe presumpLlon of regularlLy ln Lhe SenaLe's processes, Lhls
CourL cannoL flnd any cogenL reason Lo lmpuLe grave abuse of dlscreLlon Lo Lhe SenaLe's
exerclse of lLs power of concurrence ln Lhe W1C AgreemenL granLed lL by Sec. 21 of
ArLlcle vll of Lhe ConsLlLuLlon.
64

lL ls Lrue, as alleged by peLlLloners, LhaL broad consLlLuLlonal prlnclples requlre Lhe SLaLe
Lo develop an lndependenL naLlonal economy effecLlvely conLrolled by llllplnos, and Lo
proLecL and/or prefer llllplno labor, producLs, domesLlc maLerlals and locally produced
goods. 8uL lL ls equally Lrue LhaL such prlnclples - whlle servlng as [udlclal and
leglslaLlve guldes - are noL ln Lhemselves sources of causes of acLlon. Moreover, Lhere
are oLher equally fundamenLal consLlLuLlonal prlnclples relled upon by Lhe SenaLe whlch
mandaLe Lhe pursulL of a "Lrade pollcy LhaL serves Lhe general welfare and uLlllzes all
forms and arrangemenLs of exchange on Lhe basls of equallLy and reclproclLy" and Lhe
promoLlon of lndusLrles "whlch are compeLlLlve ln boLh domesLlc and forelgn markeLs,"
Lhereby [usLlfylng lLs accepLance of sald LreaLy. So Loo, Lhe alleged lmpalrmenL of
soverelgnLy ln Lhe exerclse of leglslaLlve and [udlclal powers ls balanced by Lhe adopLlon
of Lhe generally accepLed prlnclples of lnLernaLlonal law as parL of Lhe law of Lhe land
and Lhe adherence of Lhe ConsLlLuLlon Lo Lhe pollcy of cooperaLlon and amlLy wlLh all
naLlons.
1haL Lhe SenaLe, afLer dellberaLlon and voLlng, volunLarlly and overwhelmlngly gave lLs
consenL Lo Lhe W1C AgreemenL Lhereby maklng lL "a parL of Lhe law of Lhe land" ls a
leglLlmaLe exerclse of lLs soverelgn duLy and power. We flnd no "paLenL and gross"
arblLrarlness or despoLlsm "by reason of passlon or personal hosLlllLy" ln such exerclse.
lL ls noL lmposslble Lo surmlse LhaL Lhls CourL, or aL leasL some of lLs members, may even
agree wlLh peLlLloners LhaL lL ls more advanLageous Lo Lhe naLlonal lnLeresL Lo sLrlke
down SenaLe 8esoluLlon no. 97. 8uL LhaL ls oot o leqol teosoo Lo aLLrlbuLe grave abuse of
dlscreLlon Lo Lhe SenaLe and Lo nulllfy lLs declslon. 1o do so would consLlLuLe grave
abuse ln Lhe exerclse of our own [udlclal power and duLy. lneludably, whaL Lhe SenaLe
dld was a valld exerclse of lLs auLhorlLy. As Lo wheLher such exerclse was wlse, beneflclal
or vlable ls ouLslde Lhe realm of [udlclal lnqulry and revlew. 1haL ls a maLLer beLween
Lhe elecLed pollcy makers and Lhe people. As Lo wheLher Lhe naLlon should [oln Lhe
worldwlde march Loward Lrade llberallzaLlon and economlc globallzaLlon ls a maLLer LhaL
our people should deLermlne ln elecLlng Lhelr pollcy makers. AfLer all, Lhe W1C
AgreemenL allows wlLhdrawal of membershlp, should Lhls be Lhe pollLlcal deslre of a
member.
1he emlnenL fuLurlsL !ohn nalsblLL, auLhor of Lhe besL seller MeqotteoJs, predlcLs an
Aslan 8enalssance
6S
where "Lhe LasL wlll become Lhe domlnanL reglon of Lhe world
economlcally, pollLlcally and culLurally ln Lhe nexL cenLury." Pe refers Lo Lhe "free
markeL" espoused by W1C as Lhe "caLalysL" ln Lhls comlng Aslan ascendancy. 1here are
aL presenL abouL 31 counLrles lncludlng Chlna, 8ussla and Saudl Arabla negoLlaLlng for
membershlp ln Lhe W1C. noLwlLhsLandlng ob[ecLlons agalnsL posslble llmlLaLlons on
naLlonal soverelgnLy, Lhe W1C remalns as Lhe only vlable sLrucLure for mulLllaLeral
Lradlng and Lhe verlLable forum for Lhe developmenL of lnLernaLlonal Lrade law. 1he
alLernaLlve Lo W1C ls lsolaLlon, sLagnaLlon, lf noL economlc self-desLrucLlon. uuly
enrlched wlLh orlglnal membershlp, keenly aware of Lhe advanLages and dlsadvanLages
of globallzaLlon wlLh lLs on-llne experlence, and endowed wlLh a vlslon of Lhe fuLure, Lhe
hlllpplnes now sLraddles Lhe crossroads of an lnLernaLlonal sLraLegy for economlc
prosperlLy and sLablllLy ln Lhe new mlllennlum. LeL Lhe people, Lhrough Lhelr duly
auLhorlzed elecLed offlcers, make Lhelr free cholce.
WnLkLICkL, the pet|t|on |s DISMISSLD for |ack of mer|t.
SC CkDLkLD.