Yeen, Katrina Anne L.

JD2

Taada vs. Angara: An Analysis on Philippine Commitment to WTO
Agreement
In 1995, President Fidel Ramos entered into an international agreement
establishing World Trade Organization (WTO). The WTO agreement seeks to improve
the countys access to foreign markets, especially its major trading partners, through the
reduction of tariffs on its exports, particularly agricultural and industrial products.
Moreover, the President also saw in the WTO the opening of new prospects for the
services sector, the reduction of costs and improbability associated with exporting, and
the desirability of more investments into the country. The said agreement was
concurred by the majority of the members of the Senate thereafter.
In their petition, Senator Wigberto Taada, et. al questioned the constitutionality
of the countrys entry into the WTO. They argued that the WTO provisions on most-
favored-nation (MFN) clause, the national treatment principle and the Agreement on
Trade-Related Investment Measures (TRIMS Agreement) provisions violated Articles II,
Section 19
1
and XII, Sections 10
2
and 12
3
of the 1987 Constitution.
Furthermore, they contended that the ratification of WTO by the President, along
with the Senates concurrence with the said agreement, violated the Filipino first policy
protected in the Constitution and accordingly, it constitutes, and particular provisions of
the WTO resulted in a derogation of powers exclusively granted to both the Supreme
Court and the Congress.
In its decision, the Supreme Court held that WTO and its clauses do not conflict
with the Constitution. Petition dismissed.
Declaration of State Policies not Self-Executing
It was ruled that Articles II and XII are mere declaration of state policies hence,
they are not self-executing. Meaning, they will take effect only upon appropriate
legislation. Furthermore, such provisions do not provide constitutional rights. They serve
as mere guidelines in passing laws. Hence, their disregard does not result in court
action.
Constitution does not Prevent Foreign Competition

1
The State shall develop a self-reliant and independent national economy effectively controlled by Filipinos.
2
The Congress shall enact measures that will encourage the formation and operation of enterprises whose capital
is owned by Filipinos. In the grant of rights, privileges and concessions covering the national economy and
patrimony, the State shall give preference to qualified Filipinos.
3
The State shall promote the preferential use of Filipino labor, domestic materials, and locally produced goods,
and adopt measures that make them competitive.

The Court ruled that the constitutional mandate on "self-reliant and independent
national economy" does not automatically exclude the entry of foreign investments,
goods and services. It envisions neither "economic isolation" nor "mendicancy in the
international community."
Contrary to the petitioners arguments, it upheld the constitutionality of the MFN
clause, the national treatment principle, and the trade without discrimination principle
thus, they cannot be struck down. It explained that such are rules of equality and
reciprocity that apply to all WTO members towards competitiveness in both local and
foreign industries.
No Violation of First Filipino Policy
It is evident that the Constitution dictates subjectivity in favor of Filipino goods,
services, labor and enterprises. Nonetheless, it equally recognizes the must for
commercial exchange with other states on the foundations of equality and reciprocity
and. Moreover, it affords protection of Filipino enterprises only against foreign
competition and trade practices that are indeed, one-sided. It does not, said the Court,
encourage isolationism. In other words, the Constitution does not agree with the notion
that the country will be best served by circumventing international trade agreements or
other mutual assistance pacts.
No Undue Interference with Legislative Power
On this matter, it is apparent in the preceding treaties that sovereignty, although
absolute, may be subject to restrictions and limitations once voluntarily agreed upon by
the state in exchange for greater benefits granted by or derived from a convention or
pact. Otherwise stated, a portion of sovereignty may be renounced without violating the
Constitution. This is grounded on the principle of pacta sunt servanda, which states that
international law forms part of the laws of land.
No Undue Impairment of Judicial Power
According to the Court, WTO does not contravene any provision of the
Constitution considering that Chief Executives decision to participate in the WTO is a
matter of treaty obligation. Since the President is the head of, the state he has the
exclusive authority over foreign relations. Furthermore, through his diplomatic powers,
the President formulates foreign policy, deals with international affairs, represents the
state with foreign nations, maintains diplomatic relations, and enters into treaties or
international agreements.
4
Likewise, the power conferred to the Senate to concur in
treaties is to be construed as referring to treaties which the President submits to the
Senate for concurrence.
5
Hence, it was not for the Court to rule upon the wisdom of

4
Pimentel, Jr. vs. Office of the Executive Secretary, 462 SCRA 622 (2005)
5
Section 21, Article VII, 1987 Constitution
this executive decision, as such was a matter for which only the sovereign people may
decide upon.
To conclude, the Court does not see any reason to undermine the WTO. Relying
on constitutional mandates, it greatly recognizes the practicality that the nation should
join the worldwide march toward trade liberalization and economic globalization.




















International Treaties and Conventions
The Paris Convention for the Protection of Industrial Property [since
1965]
The countries to which this Convention applies constitute a Union for the protection of
industrial property. The protection of industrial property has as its object patents, utility
models, industrial designs, trademarks, service marks, trade names, indications of source
or appellations of origin, and the repression of unfair competition. Industrial property shall
be understood in the broadest sense and shall apply not only to industry and commerce
proper, but likewise to agricultural and extractive industries and to all manufactured or
natural products, for example, wines, grain, tobacco leaf, fruit, cattle, minerals, mineral
waters, beer, flowers, and flour. Patents shall include the various kinds of industrial
patents recognized by the laws of the countries of the Union, such as patents of
importation, patents of improvement, patents and certificates of addition, etc.
Berne Convention for the Protection of Literary and Artistic Works
[since 1951]
The countries to which this Convention applies constitute a Union for the protection of the
rights of authors in their literary and artistic works. The Berne Convention requires its
signatories to recognize the copyright of works of authors from other signatory countries
(known as members of the Berne Union) in the same way as it recognizes the copyright
of its own nationals. In addition to establishing a system of equal treatment that
internationalized copyright amongst signatories, the agreement also required member
states to provide strong minimum standards for copyright law. Copyright under the Berne
Convention must be automatic; it is prohibited to require formal registration (note
however that when the United States joined the Convention in 1988, it continued to make
statutory damages and attorney's fees only available for registered works).
International Convention for the Protection of Performers, Producers
of Phonographs and Broadcasting Organizations [since 1984]
By 1961, technology had progressed significantly since the Berne Convention was
signed. Some inventions, such as tape recorders, had made it easier to copy recorded
works. The Berne Convention only applied to printed works and thus did not help
copyright holders defend against the new technologies. To address the perceived need
for strong legislative protection for recorded works, the Rome Convention for the
Protection of Performers, Producers of Phonograms and Broadcasting Organizations was
concluded by members of WIPO on October 26, 1961. It extended copyright protection
from the author of a work to the creators and producers of particular, physical
embodiments of the work. These "fixations" include media such as audiocassettes, CDs,
and DVDs. The Rome Convention requires member countries to grant protection to the
works of performers, producers of phonographs, and broadcasting organizations.
However, it also permits member countries to create exceptions to that protection -- for
example, to permit unauthorized uses of a recording for the purpose of teaching or
scientific research.
The Agreement on Trade Related Aspects of Intellectual Property
Rights (TRIPS) [since 1995]

The TRIPS is an international agreement administered by the WTO. The TRIPS
agreement was negotiated and concluded in 1994. TRIPS establishes minimum
standards for many forms of intellectual property protection in member countries of the
WTO, including copyright. The substantive provisions of TRIPS do not differ drastically
from the Berne Convention. The major difference is that TRIPS requires member
countries to grant copyright protection to computer programs and data compilations.
However, TRIPS does not require the protection of authors' moral rights, which the Berne
Convention requires. The most important innovations of TRIPS are the remedies it
requires. Unlike the Berne Convention, TRIPS requires member countries to provide
effective sanctions for violations of copyrights. In addition, it creates a dispute resolution
mechanism by which WTO member countries can force other members to comply with
their treaty obligations.
Patent Cooperation Treaty [since 2001]
The Patent Cooperation Treaty (PCT) assists applicants in seeking patent protection
internationally for their inventions, helps patent Offices with their patent granting
decisions, and facilitates public access to a wealth of technical information relating to
those inventions. By filing one international patent application under the PCT, applicants
can simultaneously seek protection for an invention in 148 countries throughout the
world.
WIPO Internet Treaties [since 2012]
WIPO is deeply involved in the ongoing international debate to shape new standards for
copyright protection in cyberspace. The organization administers the WIPO Copyright
Treaty and the WIPO Performances and Phonogram Treaty (known together as the
"Internet Treaties"), which set down international norms aimed at preventing
unauthorized access to and use of creative works on the Internet or other digital
networks. The WCT deals with protection for authors of literary and artistic works, such
as writings and computer programs; original databases; musical works; audiovisual
works; works of fine art and photographs; whereas the WPPT deals with protection for
authors rights of performers and producers of phonograms. The purpose of the two
treaties is to update and supplement the major existing WIPO treaties on copyright and
related rights, primarily in order to respond to developments in technology and in the
marketplace. Since the Berne Convention and the Rome Convention were adopted or
lastly revised more than a quarter century ago, new types of works, new markets, and
new methods of use and dissemination have evolved. Among other things, both the WCT
and the WPPT address the challenges posed by today's digital technologies, in particular
the dissemination of protected material over digital networks such as the Internet. For this
reason, they are often referred to as the "Internet treaties."
Madrid Protocol [since 2012]
The Madrid Protocol is a filing system that facilitates the registration of marks in several
countries through a single application filed with the IPOPHL. It simplifies the protection of
marks outside the Philippines and reduces the cost of registration. The major trading
partners of the PhilippinesJapan, United States of America, Peoples Republic of
China, Singapore, Republic of Korea, Germanyare all members of the Madrid Protocol.
The Philippine accession to the Madrid Protocol is essential in making the country
globally competitive. By membership in the Madrid Protocol, the Philippines opens its
doors to eighty-four countries (which is expected to increase over time), the economies of
which constitute most of international trade. Foreign businesses interested in establishing
their businesses in the Philippines will be encouraged by the ease in protecting their
marks in the country. More importantly, accession to the Madrid Protocol will help Filipino
entrepreneurs to protect their brands as they expand into international markets since
financial and administrative costs are considerably reduced. The Madrid Protocol eases
the cost of doing business for foreign investors and facilitates exporting of businesses for
Filipino entrepreneurs.
The Beijing Treaty on Audiovisual Performances [since 2013]

The Beijing Treaty on Audiovisual Performances is a multilateral treaty which regulates
copyright for audiovisual performances and expands the performers' rights. The new
treaty brings audiovisual performers into the fold of the international copyright framework
in a comprehensive way, for the first time referring to the clauses dedicated to protecting
their works on the Internet. It addresses the issue of the copyright system discriminating
against certain groups of performers, as the previous treaties, such as WIPO
Performances and Phonograms Treaty, focused more on the sound than visual aspects.
The treaty boosts the economic rights and moral rights of audiovisual performers (the
performers' rights). The expanded economic rights give them an opportunity to share the
income collected by producers from internationally distributed audiovisual works. The
moral rights address issues such as lack of attribution or distortion of their work.


Sources:
http://www.wipo.int
http://www.uspto.gov/trademarks/law/madrid/
http://cyber.law.harvard.edu/copyrightforlibrarians/Module_2:_The_International_Framework#The_
Agreement_on_Trade_Related_Aspects_of_Intellectual_Property_Rights_.28TRIPS.29