DTI wants SC to reconsider its ruling on safeguard measures

The Department of Trade and Industry (DTI), through the Office of the Solicitor General (OSG), will ask the Supreme Court (SC) to reconsider its decision to reinstate the order of the Regional Trial Court of Valenzuela City, Branch 172 allowing the issuance of a writ of preliminary injunction restraining the DTI from enforcing Republic Act 8800 or the Safeguard Measures Act and its implementing rules and regulations.

According to Trade and Industry Secretary Peter B. Favila, the issuance of the injunction could have far reaching implications in terms of enabling the government to provide domestic industries with the necessary safety net in the event of a surge in imports.

Representatives from the DTI, together with all the agencies involved in the implementation of the Safeguard Measures Act, met with the Solicitor General to finalize government’s legal position which would be consolidated and filed in a motion for reconsideration before the High Court.

The OSG received notice of the decision of the Supreme Court Aug. 25 and has 15 days or until Sept. 9 to file the motion for reconsideration.

The OSG is also contemplating the filing of a motion for Summary Judgment before the RTC- Valenzuela to finally resolve the issue of the constitutionality of RA 8800 provided there are no other factual issues involved.

Domestic industry leaders expressed apprehension that with the issuance of an injunction restraining the government from implementing the Safeguard Measures Act, the strongest and most effective of the three safety nets provided under the WTO Agreement, has been rendered inutile as the case filed against the government can drag on for several years.

Further, there are concerns that the issuance of the injunction on RA 8800 could set a precedent for other parties to also file similar petitions to question the constitutionality of the two other safety nets under the WTO Agreement – the Anti-Dumping and Subsidies and Countervailing Measures, with RA 8752 (Anti-Dumping Act) and RA 8751 (Countervailing Duty Act) as their enabling legislation.

The Fair Trade Alliance, in a press conference, warned that without the safeguards measures, the countries’ industries and agriculture sector would now be swamped by imports.

FTA lead convenor former Sen. Wigberto Tañada further warned that with the unimpeded entry of imports, the country’s labor sector would be hardest hit due to the loss of jobs as local industries close shop and the agriculture sector lose out to imports.

Favila assured domestic industry leaders that the DTI and all the agencies involved in the implementation of the Safeguard Measures Act are closely collaborating with the OSG in taking the necessary legal remedies to speed up the resolution of the case.

Favila said that the DTI would also submit a bill before Congress to amend the Safeguard Measures Act.

"I believe that the recent decisions of the Supreme Court provide an opportunity for us to take a second look at certain provisions of the Safeguard Measures Act with a view to clarifying and strengthening said provisions. We will make the necessary representations with Congress to amend and strengthen the law on safeguard measures," Favila said.