Tanada vs. Angara

272 SCRA 18

FACTS: The suit was filed to nullify the concurrence of the Philippines Senate to the President’s Ratification of the Agreement establishing the World Trade Organization. It was contended that the agreement places nationals and products of member countries on the same footing as Filipinos and local products in contravention of the Filipino First Policy.

Petitioners maintained that this Agreement was 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.

ISSUE: Whether the provisions of the WTO Agreement and its annexes limit, restrict, or impair the exercise of legislative power by Congress.

HELD: While sovereignty has traditionally been deemed absolute and all-encompassing on the domestic level, it is however subject to limitations and restrictions voluntarily agreed to by the Philippines as a member of the family of nations. One of the oldest and most fundamental rules in international law is pacta sunt servanda — international agreements must be performed in good faith. “A treaty engagement is not a mere moral obligation but creates a legally binding obligation on the parties xxx. A state which has contracted valid international obligations is bound to make in its legislation such modifications as may be necessary to ensure the fulfillment of the obligations undertaken.

By their inherent nature, treaties really limit or restrict the absoluteness of sovereignty. By their voluntary act, nations may surrender some aspects of their state power in exchange for greater benefits granted by or derived from a convention or pact. After all, states, like individuals live with coequals, and in pursuit of mutuality covenanted objectives and benefits, they also commonly agree to limit the exercise of their otherwise absolute rights.

The sovereignty of a state therefore cannot in fact and in reality be considered absolute. Certain restrictions enter into the picture: (1) limitations imposed by the very nature of membership in the family of nations and (2) limitations imposed by treaty stipulations.