Taada, et al., v. Angara, et al., G.R. No.

118295, May 2, 1997

D E C I S I O N
(En Banc)
PANGANIBAN, J.:
I. THE FACTS
Petitioners Senators Taada, et al. qestioned t!e "onstittionality o# t!e "on"rren"e $y t!e
P!ili%%ine &enate o# t!e President's rati#i"ation o# t!e international Agree(ent esta$lis!ing t!e )orld
Trade *rgani+ation ,)T*-. T!ey arged t!at t!e )T* Agree(ent violates t!e (andate o# t!e 1987
.onstittion to /develo% a sel#0reliant and inde%endent national e"ono(y e##e"tively "ontrolled $y
1ili%inos . . . ,to- give %re#eren"e to qali#ied 1ili%inos ,and to- %ro(ote t!e %re#erential se o# 1ili%ino
la$or, do(esti" (aterials and lo"ally %rod"ed goods.2 1rt!er, t!ey "ontended t!at t!e /national
treat(ent2 and /%arity %rovisions2 o# t!e )T* Agree(ent /%la"e nationals and %rod"ts o# (e($er
"ontries on t!e sa(e #ooting as 1ili%inos and lo"al %rod"ts,2 in "ontravention o# t!e /1ili%ino 1irst2
%oli"y o# or .onstittion, and render (eaningless t!e %!rase /e##e"tively "ontrolled $y 1ili%inos.2
II. THE ISSUE
3oes t!e 1987 .onstittion %ro!i$it or "ontry #ro( %arti"i%ating in 4orld4ide trade
li$erali+ation and e"ono(i" glo$ali+ation and #ro( integrating into a glo$al e"ono(y t!at is
li$erali+ed, dereglated and %rivati+ed5
III. THE RULING
[The Court DISMISSED the petition. It sustained the concurrence of the Philippine Senate of
the Presidents ratification of the Agreement establishing the WTO.
NO, the 1987 Constitution DOES NOT prohibit our country fro p!rticip!tin" in
#or$%#i%e tr!%e $iber!$i&!tion !n% econoic "$ob!$i&!tion !n% fro inte"r!tin" into ! "$ob!$
econoy th!t is $iber!$i&e%, %ere"u$!te% !n% pri'!ti&e%.
T!ere are enog! $alan"ing %rovisions in t!e .onstittion to allo4 t!e &enate to rati#y t!e
P!ili%%ine "on"rren"e in t!e )T* Agree(ent.
6)7!ile t!e .onstittion indeed (andates a $ias in #avor o# 1ili%ino goods, servi"es, la$or
and enter%rises, at t!e sa(e ti(e, it re"ogni+es t!e need #or $siness e8"!ange 4it! t!e rest o# t!e
4orld on t!e $ases o# eqality and re"i%ro"ity and li(its %rote"tion o# 1ili%ino enter%rises only
against #oreign "o(%etition and trade %ra"ti"es t!at are n#air. 9n ot!er 4ords, t!e .onstittion did
not intend to %rse an isolationist %oli"y. 9t did not s!t ot #oreign invest(ents, goods and servi"es
in t!e develo%(ent o# t!e P!ili%%ine e"ono(y. )!ile t!e .onstittion does not en"orage t!e
nli(ited entry o# #oreign goods, servi"es and invest(ents into t!e "ontry, it does not %ro!i$it t!e(
eit!er.9n #a"t, it allo4s an e8"!ange on t!e $asis o# eqality and re"i%ro"ity, #ro4ning only on #oreign
"o(%etition t!at is unfair.

888 888 888
6T7!e "onstittional %oli"y o# a /sel#0reliant and inde%endent national e"ono(y2 does not
ne"essarily rle ot t!e entry o# #oreign invest(ents, goods and servi"es. 9t "onte(%lates neit!er
/e"ono(i" se"lsion2 nor /(endi"an"y in t!e international "o((nity.2 As e8%lained $y
.onstittional .o((issioner :ernardo ;illegas, s%onsor o# t!is "onstittional %oli"y<
!conomic self"reliance is a primar# ob$ecti%e of a de%eloping countr# that is &eenl# a'are of
o%erdependence on e(ternal assistance for e%en its most basic needs. It does not mean autar&# or
economic seclusion= rat!er, it (eans avoiding (endi"an"y in t!e international "o((nity.
9nde%enden"e re#ers to t!e #reedo( #ro( nde #oreign "ontrol o# t!e national e"ono(y, es%e"ially
in s"! strategi" indstries as in t!e develo%(ent o# natral resor"es and %$li" tilities.
T!e )T* relian"e on /(ost #avored nation,2 /national treat(ent,2 and /trade 4it!ot
dis"ri(ination2 "annot $e str"> do4n as n"onstittional as in #a"t t!ey are rles o# eqality and
re"i%ro"ity t!at a%%ly to all )T* (e($ers. Aside #ro( envisioning a trade %oli"y $ased on /eqality
and re"i%ro"ity,2 t!e #nda(ental la4 en"orages indstries t!at are /"o(%etitive in $ot! do(esti"
and #oreign (ar>ets,2 t!ere$y de(onstrating a "lear %oli"y against a s!eltered do(esti" trade
environ(ent, $t one in #avor o# t!e gradal develo%(ent o# ro$st indstries t!at "an "o(%ete 4it!
t!e $est in t!e #oreign (ar>ets. 9ndeed, 1ili%ino (anagers and 1ili%ino enter%rises !ave s!o4n
"a%a$ility and tena"ity to "o(%ete internationally. And given a #ree trade environ(ent, 1ili%ino
entre%reners and (anagers in ?ong>ong !ave de(onstrated t!e 1ili%ino "a%a"ity to gro4 and to
%ros%er against t!e $est o##ered nder a %oli"y o# laisse) faire.
888 888 888
9t is tre, as alleged $y %etitioners, t!at $road "onstittional %rin"i%les reqire t!e &tate to
develo% an inde%endent national e"ono(y e##e"tively "ontrolled $y 1ili%inos= and to %rote"t and@or
%re#er 1ili%ino la$or, %rod"ts, do(esti" (aterials and lo"ally %rod"ed goods. :t it is eqally tre
t!at s"! %rin"i%les A 4!ile serving as Bdi"ial and legislative gides A are not in t!e(selves
sor"es o# "ases o# a"tion. Moreover, t!ere are ot!er eqally #nda(ental "onstittional %rin"i%les
relied %on $y t!e &enate 4!i"! (andate t!e %rsit o# a /trade %oli"y t!at serves t!e general
4el#are and tili+es all #or(s and arrange(ents o# e8"!ange on t!e $asis o# eqality and re"i%ro"ity2
and t!e %ro(otion o# indstries /4!i"! are "o(%etitive in $ot! do(esti" and #oreign (ar>ets,2
t!ere$y Bsti#ying its a""e%tan"e o# said treaty. &o too, t!e alleged i(%air(ent o# sovereignty in t!e
e8er"ise o# legislative and Bdi"ial %o4ers is $alan"ed $y t!e ado%tion o# t!e generally a""e%ted
%rin"i%les o# international la4 as %art o# t!e la4 o# t!e land and t!e ad!eren"e o# t!e .onstittion to
t!e %oli"y o# "oo%eration and a(ity 4it! all nations.
T!at t!e &enate, a#ter deli$eration and voting, volntarily and over4!el(ingly gave its
"onsent to t!e )T* Agree(ent t!ere$y (a>ing it /a %art o# t!e la4 o# t!e land2 is a legiti(ate
e8er"ise o# its sovereign dty and %o4er. )e #ind no /%atent and gross2 ar$itrariness or des%otis(
/$y reason o# %assion or %ersonal !ostility2 in s"! e8er"ise. 9t is not i(%ossi$le to sr(ise t!at t!is
.ort, or at least so(e o# its (e($ers, (ay even agree 4it! %etitioners t!at it is (ore advantageos
to t!e national interest to stri>e do4n &enate Resoltion No. 97. :t t!at is not a legal reason to
attri$te grave a$se o# dis"retion to t!e &enate and to nlli#y its de"ision. To do so 4old "onstitte
grave a$se in t!e e8er"ise o# or o4n Bdi"ial %o4er and dty. 9neldi$ly, 4!at t!e &enate did 4as a
valid e8er"ise o# its at!ority. As to 4!et!er s"! e8er"ise 4as 4ise, $ene#i"ial or via$le is otside
t!e real( o# Bdi"ial inqiry and revie4. T!at is a (atter $et4een t!e ele"ted %oli"y (a>ers and t!e
%eo%le. As to 4!et!er t!e nation s!old Boin t!e 4orld4ide (ar"! to4ard trade li$erali+ation and
e"ono(i" glo$ali+ation is a (atter t!at or %eo%le s!old deter(ine in ele"ting t!eir %oli"y
(a>ers. A#ter all, t!e )T* Agree(ent allo4s 4it!dra4al o# (e($ers!i%, s!old t!is $e t!e %oliti"al
desire o# a (e($er.