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The PHILPHILPHIL AAA JULY-DECEMBER 2010 VOL. 12, ISSUE NO. 34 JJUDICIAL OURNAL LAW AND ECONOMIC DEVELOPMENT The PHILJA Judicial Journal The PHILJA Judicial Journal is published twice a year by the Research, Publications and Linkages Office of the Philippine Judicial Academy (PHILJA). The Journal features articles, lectures, research outputs and other materials of interest to members of the Judiciary, particularly judges, as well as law students and practitioners. The views expressed by the authors do not necessarily reflect the views of either the Academy or its editorial board. Editorial and general offices are located at PHILJA, 3rd Floor, Centennial Building, Supreme Court, Padre Faura St., Manila. Tel. No.: 552-9524 Telefax No.: 552-9628 Email: [email protected]; [email protected] CONTRIBUTIONS. The PHILJA Judicial Journal invites contributions. Please include author’s name and biographical information. The editorial board reserves the right to edit the materials submitted for publication. Copyright © 2010 by The PHILJA Judicial Journal. All rights reserved. For more information, please visit the PHILJA website at http://philja.judiciary.gov.ph. ISSN 2244-5854 SUPREME COURT OF THE PHILIPPINES CHIEF JUSTICE Hon. RENATO C. CORONA ASSOCIATE JUSTICES Hon. ANTONIO T. CARPIO Hon. CONCHITA CARPIO MORALES Hon. PRESBITERO J. VELASCO, Jr. Hon. ANTONIO EDUARDO B. NACHURA Hon. TERESITA J. LEONARDO-DE CASTRO Hon. ARTURO D. BRION Hon. DIOSDADO M. PERALTA Hon. LUCAS P. BERSAMIN Hon. MARIANO C. DEL CASTILLO Hon. ROBERTO A. ABAD Hon. MARTIN S. VILLARAMA, Jr. Hon. JOSE P. PEREZ Hon. JOSE C. MENDOZA Hon. MARIA LOURDES P. A. SERENO COURT ADMINISTRATOR Hon. JOSE MIDAS P. MARQUEZ DEPUTY COURT ADMINISTRATORS Hon. NIMFA C. VILCHES Hon. EDWIN A. VILLASOR Hon. RAUL B. VILLANUEVA CLERK OF COURT Atty. ENRIQUETA ESGUERRA VIDAL ASSISTANT COURT ADMINISTRATORS Hon. THELMA C. BAHIA Hon. JENNY LIND A. DELORINO ASSISTANT CLERK OF COURT Atty. FELIPA B. ANAMA DIVISION CLERKS OF COURT Atty. EDGAR O. ARICHETA (Acting) Atty. MA. LUISA L. LAUREA Atty. LUCITA A. SORIANO PHILIPPINE JUDICIAL ACADEMY Board of Trustees Hon. RENATO C. CORONA Chief Justice Chair Hon. ANTONIO T. CARPIO Senior Justice, Supreme Court Vice Chair Members Hon. ADOLFO S. AZCUNA Hon. JOSE MIDAS P. MARQUEZ Chancellor Court Administrator Hon. ANDRES B. REYES, Jr. Hon. EDILBERTO G. SANDOVAL Presiding Justice, Court of Appeals Presiding Justice, Sandiganbayan Hon. ERNESTO D. ACOSTA Hon. ANTONIO M. EUGENIO, Jr. Presiding Justice, Court of Tax Appeals President, Philippine Judges Association Hon. MARIE YVETTE D. DEDEL-GO Dean RAUL R. VILLANUEVA Presiding Judge, MTCC Br. 4, Iloilo City President, Philippine Association of Law Schools Hon. AMEURFINA A. MELENCIO HERRERA Founding Chancellor Emeritus Executive Officials Hon. ADOLFO S. AZCUNA Hon. JUSTO P. TORRES, Jr. Chancellor Vice Chancellor Hon. MARINA L. BUZON Executive Secretary Chiefs of Office Hon. JUSTO P. TORRES, Jr. Finance Office Hon. DELILAH V. MAGTOLIS Hon. MARINA L. BUZON Academic Affairs Office Acting Chief of Office for Philippine Mediation Center Associate Dean SEDFREY M. CANDELARIA Hon. THELMA A. PONFERRADA Research, Publications and Linkages Office Administrative Office Chairpersons, Curricular Departments Dean PACIFICO A. AGABIN Prof. RUBEN F. BALANE Constitutional Law Civil Law Hon. MAGDANGAL M. DE LEON Hon. EDILBERTO G. SANDOVAL Remedial Law Criminal Law Hon. JOSE MIDAS P. MARQUEZ Hon. HILARION L. AQUINO Court Management Ethics and Judicial Conduct Dean CESAR L. VILLANUEVA Dr. PURIFICACION V. QUISUMBING Commercial Law International and Human Rights Law Fr. RANHILIO C. AQUINO Prof. MYRNA S. FELICIANO Jurisprudence and Legal Philosophy Legal Method and Research Associate Dean SEDFREY M. CANDELARIA Atty. EMMANUEL L. CAPARAS Special Areas of Concern Court Technology Prof. ALFREDO F. TADIAR Hon. JAINAL D. RASUL Alternative Dispute Resolution Shari’a and Islamic Jurisprudence Justice Adolfo S. Azcuna Chancellor Prof. Sedfrey M. Candelaria Editor in Chief Editorial and Research Staff Atty. Ma. Melissa Dimson-Bautista Arsenia M. Mendoza Armida M. Salazar Jocelyn D. Bondoc Ronald Paz Caraig Christine A. Ferrer Joanne Narciso-Medina Sarah Jane S. Salazar Charmaine C. Saltivan Jeniffer P. Sison Circulation and Support Staff Romeo A. Arcullo Lope R. Palermo Daniel S. Talusig Printing Services Leticia G. Javier and Printing Staff VOLUME 12 ISSUE NO. 34 JULY-DECEMBER 2010 THE PHILJA JUDICIAL JOURNAL CONTENTS OFFICIALS OF THE SUPREME COURT OF THE PHILIPPINES ....................... iv OFFICIALS OF THE PHILIPPINE JUDICIAL ACADEMY ................................. v I. SPEECHES Law and Economics: Courts and the Economy Justice Ameurfina A. Melencio Herrera ........................... 1 A Vision for Effective Economic Governance: The Need for a Partnership between the Courts and the Different Sectors of the Economy Chief Justice Reynato S. Puno .......................................... 5 Courts and the Economy: An Economist’s Perspective Dr. Cielito Habito ........................................................... 15 Inspirational Message Ambassador Lilia R. Bautista .......................................... 24 II. LECTURES Basic Economics for International Economic Law Dr. Luis F. Dumlao ........................................................... 28 International Economics and Sovereignty: The Concept of National Welfare as a Motivation for Compliance with Treaty Obligations Dr. Marissa Maricosa A. Paderon ..................................... 46 Sovereignty, the Philippines and the WTO Atty. Jeremy I. Gatdula ................................................... 61 Interwar Period: 1918–1939 Ms. Cristina M. Bautista ................................................. 81 CONTENTS Bretton Woods Mr. Raphael B. Madarang ............................................... 95 Challenges in Implementing the WTO Obligations in the Philippines Atty. Jeremy I. Gatdula ................................................. 100 Do Trade Remedies Really Remedy? Dr. Marissa Maricosa A. Paderon ................................... 111 Anti-Dumping under International and Philippine Trade Law Atty. Jeremy I. Gatdula ................................................. 122 Trade Remedies: Some Definitional Issues Atty. Jeremy I. Gatdula ................................................. 144 The Fog of Trade Atty. Jeremy I. Gatdula ................................................. 155 The Road Ahead: Responding to Uncertainties in the Multilateral Trading System Atty. Jeremy I. Gatdula and Mr. Raphael B. Madarang ...... 165 Towards the Development of Philippine Agricultural and Service Exports in the Light of the Doha Round of Negotiations Mr. Raphael B. Madarang .............................................. 210 ASEAN Trade in Focus Mr. Raphael B. Madarang .............................................. 233 RTAs: Building Blocks or Stumbling Blocks? (Are Regional Trading Agreements Good or Bad?) Dr. Marissa Maricosa A. Paderon ................................... 239 A Review of the Economic Decisions of the Supreme Court (An Excerpt) Atty. Cecille L. Mejia .................................................... 249 CONTENTS The Color of Money Dr. Luis F. Dumlao ......................................................... 266 The International Monetary Fund Articles of Agreement and the Current Framework for Sovereign Debt Renegotiations: “An Expanding Role for Standby Arrangements in National Economic Policy Making in Developing Country Debtors” Prof. Sedfrey M. Candelaria .......................................... 279 The Economic Theory of Globalization Victor S. Venida, Ph.D. ................................................. 335 Law and Economic Development in the Philippines Victor S. Venida, Ph.D. ................................................. 380 III. INTERNATIONAL JURISPRUDENCE Brazil – Measures Affecting Dessicated Coconut .................. 407 ACKNOWLEDGMENT The Philippine Judicial Academy would like to thank Atty. Ma. Lourdes Dabao-Sitaca, President, CD Technologies Asia, Inc., for allowing the Academy to reproduce the materials used during the Seminar-Workshop on Law and Economic Development Issues for the Philippine Judiciary conducted through the generous auspices of the British Embassy in partnership with the Ateneo Law School, the Department of Economics of the Ateneo de Manila University and the Teehankee Center for the Rule of Law. Law and Economics: Courts and the Economy∗ Justice Ameurfina A. Melencio Herrera Chief Justice Reynato S. Puno Your Excellency, Ambassador Beckingham Your Honors All of the Supreme Court and the Court of Appeals Distinguished representatives of the Academe, Business, and the Private Sector he Academy is, indeed, pleased and honored to hold this Roundtable Discussion on Law and Economics TT with Supreme Court and Court of Appeals Justices and selected representatives from the private sector, business, and the academe. Its significant theme is Courts and the Economy. This is actually the culminating activity for PHILJA’s capacity building project on Law and Economic Development Issues for the Philippine Judiciary since we launched it last October 2006 in the Supreme Court. The Academy has held two 2-day seminar workshops for research attorneys of the appellate courts in November 2006; for commercial court judges in December 2006; and for the Court of Tax Appeals Justices and Court Attorneys just last March 2007. The objectives of the series have been to increase the working knowledge of judges not only of basic economics,
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