What is the relationship between International Law and Municipal Law?

Tanada v. Angara

Emergency Digest:

Petitioners Senators Tañada, et al. questioned the constitutionality of the concurrence by

the Philippine Senate of the President’s ratification of the international Agreement
establishing the World Trade Organization (WTO). Petitioners believe that this will be
detrimental to the growth of our National Economy and against to the “Filipino First”
policy. The WTO opens access to foreign markets, especially its major trading partners,
through the reduction of tariffs on its exports, particularly agricultural and industrial
products. Petitioners also contends that it is in conflict with the provisions of our
constitution, since the said Agreement is an assault on the sovereign powers of the
Philippines because it meant that Congress could not pass legislation that would be good
for national interest and general welfare if such legislation would not conform to the
WTO Agreement. The Supreme Court in ruling against the Petitioners held that the
Philippines “adopts the generally accepted principles of international law as part of the
law of the land, and adheres to the policy of peace, equality, justice, freedom,
cooperation and amity, with all nations. By the doctrine of incorporation, the country is
bound by generally accepted principles of international law, which are considered to be
automatically part of our own laws. A state which has contracted valid international
obligations is bound to make in its legislations such modifications as may be necessary
to ensure the fulfillment of the obligations undertaken. The Senate, after deliberation and
voting, voluntarily and overwhelmingly gave its consent to the WTO Agreement thereby
making it “a part of the law of the land” is a legitimate exercise of its sovereign duty and
power.

Complete Digest:

Facts:

World Trade Organization is one of the international institutions that was created out of a
multilateral treaty. After the ravages of World War II, WTO (then was proposed in the
name of International Trade Organization) was envisioned to play a big role in the
worldwide economic recovery by fostering international trade and preventing unilateral
protectionist policy, Unfortunately, ITO was not ratified thus only the World Bank
(tasked of rehabilitation and reconstruction) and International Monetary Fund (to
stabilize currency among states) took effect. GATT or the General Agreement on Tariffs
and Trade for the meantime was used bu different states to determine the trading of
goods. The problem with GATT though is that it is simply a collection of different
treaties with no institutionalized body of agreements and no system of dispute settlement.
WTO was ratified after a century later after the Uruguay Round (one of the round of
talks held by different representatives of states) through the signing of the Final Act (a
one page paper enumerating the agreements of the countries regarding the WTO).

In the Philippines, Respondent Rizalina Navarro, then secretary of the DTI, representing
the Philippines, signed in Marrakesh, Morocco, the Final Act Embodying the Results of
the Uruguay Round of Multilateral Negotiations. Under the Final Act, the Philippines
agrees to submit, as appropriate, the WTO Agreement for the consideration of their
respective competent authorities, with a view to seeking approval of the Agreement in
accordance with their Procedures. Fidel V. Ramos ratified the Agreement. The Senate
received two letters form the President for their concurrence of the Agreement pursuant
to Section 21, Article VII of the Constitution (No treaty or international agreement shall
be valid and effective unless concurred in by at least 2/3 of all the Members of the
Senate).

Issue:

Do the provisions of the WTO Agreement and its annexes limit, restrict or impair the
exercise of legislative power by Congress? (Given that the WTO Agreement provides
that “each Member shall ensure the conformity of its laws, regulations and administrative
procedures with its obligations as provided in the annexed Agreements”)

Held:

No. The concept of sovereignty employed here is auto-limitation. In the foregoing

treaties, the Philippines has effectively agreed to limit the exercise of its sovereign
powers of taxation, eminent domain and police power. The underlying consideration in
this partial surrender of sovereignty is the reciprocal commitment of the other
contracting states in granting the same privilege and immunities to the Philippines under
the WTO-GATT.
Also, the Constitution provides that international law should be adopted as part of the
land. Pacta sunt servanda is followed by the Philippines (“Agreements must be kept” or
international agreements must be performed in good faith). Philippines also follows thhe
doctrine of incorporation wherein as long as the international provisions are consistent
with domestic laws, the former will be enforceable within our jurisdiction. Also, Treaties
inherently restrict sovereignty. By their voluntary act, nations may surrender some
aspects of state power in exchange for greater benefits granted or derived from a
convention or pact.