RESTRICTED  
  
WT/TPR/G/3 68 
5 February  2018 
(18-0646) Page: 1/18 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
THE PHILIPPINES  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by The 
Philippines  is attached.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on The Philippines . WT/TPR/G/3 68 • The Philippines  
 
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  Contents  
1   MACROECONOMIC OUTLOO K AND DEVELOPMENTS I N THE ECONOMY  .........................  3 
1.1   Overall Economic Performance  ................................ ................................ ......................  3 
1.2   Sectoral Growth  ................................ ................................ ................................ ..........  3 
1.3   External Trade  ................................ ................................ ................................ ............  4 
2   DOMESTIC POLICIES AN D INITIATIVES TO SUS TAIN LONG -TERM GROWTH 
AND IMPROVE THE BUSI NESS ENVIRONMENT FOR  INCLU SIVE GROWTH  ........................  5 
2.1   Domestic Policies and Initiatives  ................................ ................................ ....................  5 
2.1.1    Structural Reforms  ................................ ................................ ................................ .... 5 
2.2   Enhancing Competition Policy and the Regulatory Environment  ................................ .........  5 
2.2.1    Trade Facilitation  ................................ ................................ ................................ ...... 6 
2.2.2    Data Privacy  ................................ ................................ ................................ ............  6 
2.2.3    Tax Reform  ................................ ................................ ................................ ..............  6 
2.3   Manufacturing resurgence  ................................ ................................ ............................  7 
2.4   Services  ................................ ................................ ................................ .....................  7 
2.4.1    Information Technology -Business Process Management (IT -BPM) ................................ ... 7 
2.4.2    Financial services  ................................ ................................ ................................ ...... 8 
2.4.3    Tourism  ................................ ................................ ................................ ...................  9 
2.4.4    Logistics  ................................ ................................ ................................ ..................  9 
2.5   Innovation and Development  ................................ ................................ ....................... 10 
2.6   Enhancing the Participation of Micro, Small, and Medium Enterprises (MSMEs) in 
Global Markets ................................ ................................ ................................ ................... 10 
2.7   Standards and Technical Regulations  ................................ ................................ ............ 11 
3   INDUSTRY AND TRADE P OLICY DEVELOPMENTS  ................................ .......................  11 
3.1   The Philippines and the WTO  ................................ ................................ ........................ 11 
3.1.1    Multilateral Agr eements  ................................ ................................ ............................ 12 
3.1.1.1    2005 Protocol Amending the TRIPS Agreement  ................................ ......................... 12 
3.1.1.2    2014 Protocol concerning the Trade Facilitation Agreement  ................................ ........ 12 
3.1.2    Plurilateral Agreements  ................................ ................................ ............................ 12 
3.1.2.1    Information Technology Agreement  ................................ ................................ ......... 12 
3.2   Participation in the Doha Development Agenda (DDA) Negotiations  ................................ ..12 
3.2.1    Agriculture  ................................ ................................ ................................ .............. 12 
3.2.2    Services  ................................ ................................ ................................ ................. 13 
3.2.3    Intellectual Property  ................................ ................................ ................................ .13 
3.2.4    Rules  ................................ ................................ ................................ ..................... 14 
3.2.5    Trade Facilitation  ................................ ................................ ................................ .....14 
3.2.6    Dispute Settlement Understanding  ................................ ................................ ............. 14 
3.3   Bilateral and regional trade relations  ................................ ................................ ............. 15 
4   FUTURE POLICY DIRECT IONS  ................................ ................................ ....................  16 
 
 WT/TPR/G/36 8 • The Philippines  
 
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  1  MACROECONOMIC OUTLOO K AND DEVELOPMENTS I N THE ECONOMY  
1.1  Overall Economic Performance   
The Philippine economy from 2010 to 2016 recorded the highest average real Gross Domestic 1.1.  
Product (GDP ) growth since the 1980s at 6.3%. The country’s growth performance peaked in 2010 
registering a growth of 7.6%. However, the economy’s performance eased in 2011 as the industry 
sector recorded considerable slowdown in growth in 2011 following slower produc tion in the 
manufacturing sector on the back of the lingering global uncertainties. The economy, however, 
recovered in 2012 and has since continued its strong growth trajectory. The growth pattern 
remained strong for real Gross National Income (GNI) since 2012 with an average of 6.7% from 
2012 to 2016.  
The composition of the country’s economic growth is also worth noting. On the demand or 1.2.  
spending side, the contribution of investments to the economy has increased.  For the whole of 
2016, investment as a share of GDP (in real terms) reached 28% in 2016 from 17% in 2009. On 
the supply or production side, the resurgence of industry (especially manufacturing) from an 
average contribution to growth of 1.2 percentage points during the period 2000 -2009 to 
2.4 percentage points in 2010 -2015, and 2.8 percentage points in 2016. This implies that the 
quality of economic growth is improving and has been instrumental in generating more 
employment.  
Meanwhile, the most recent performance of the economy continued to be st rong with a full 1.3.  
year real GDP growth of 6.9% in 2016.  This is near the upper -bound of the government approved 
target of 6.0 to 7.0% for the period. The vigorous growth was achieved notwithstanding the 
lacklustre performance of agriculture and fishery.  
Table 1.1 Selected macroeconomic indicators  
  2010  2011  2012  2013  2014  2015  2016  
Real GNI (growth rate in %)  7.0 3.0 7.1 7.8 6.0 5.8 6.7 
Real GDP (growth rate in %)  7.6 3.7 6.7 7.1 6.1 6.1 6.9 
Source:  Philippine Statistics Authority  
1.2  Sectoral Growth  
In 2016, the full year output growth was primarily contributed by services (7.4%) and 1.4.  
industry (8.4%) sectors while agriculture and fishery output ( -1.3%) declined due to the impact of 
El Nino during the firs t half and typhoons in the last quarter of the year. Nonetheless, the 
significant expansion from manufacturing which increased by 7.0% from the 5.7% in 2015, more 
than offset the decline in agricultural production. Meanwhile, among the top contributors of the 
services sector to the economy’s performance include public administration and defence and 
compulsory social security (which grew by 7.2% in 2016 from 7.1% in 2015); real estate renting 
and business activities (8.9% from 7.1%); financial intermediation  (7.6% from 6.1%), and public 
administration and defence including social security (7.2% from 1.2%).  
On the other hand, domestic demand was visibly strong with its 11.0% growth, which was 1.5.  
boosted by household consumption (7.0% in 2016 from 6.3% in 2015), sustained government 
consumption (8.4% from 7.6%), and the continued strong expansion in investment (23.7%). 
Notable expansions were also recorded in durable equipment, consumption of food and non -
alcoholic beverages, and construction.  
During the past medi um term, some aspects of the country’s economic growth are worth 1.6.  
noting, in particular, the increasing contribution of investment on the demand side. In detail, 
investment as a share of GDP reached 28.0% in real terms from 17.0% in 2009.  On the supply 
side, there is the growing significance of industry, especially manufacturing, and within the 
services sector, business process management and tourism -related subsectors. These are markers 
of structural transformation that is taking place in the Philippine eco nomy, which is crucial for 
sustaining growth and generating quality jobs.  WT/TPR/G/3 68 • The Philippines  
 
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  Table 1.2 Trade performance  
(growth rate in % constant 2000 prices)  
 2010  2011  2012  2013  2014  2015  2016  
Total Exports  21.0  -2.5  8.6  -1.0  12.6  8.5  10.7  
  Exports of Goods  24.7  -7.1  10.3  -0.4  13.9  6.6  9.2  
  Exports of Services     6.5 18.3 2.3 -3.3 7.4 16.5 16.2 
   
 
Total Imports  22.5  -0.6  5.6  4.4  9.9  14.6  18.5  
  Imports of Goods  23.4  0.6  3.0  3.6  9.7  14.0  20.8  
  Imports of Services                            18.9 -5.4 17.0 7.8 10.7 16.9 10.0 
Source:  Philippine Statistics Authority  
1.3  External Trade  
Exports of goods and services recorded a 12.6% growth rate in 2014. The year 2016 1.7.  
represents the third consecutive year of positive growth. Goods constituted nearly four -fifths of 
total revenues, although it was the growth in services that buoyed up external trade amid 
volatilities in global demand.  
Manufacturing dominated goods exports with a share of 83%.  Increasing export of minerals 1.8.  
has fairly reduced this share from 93% in 2000. The real dent in the share of manufacturing, 
however, was caused by the slump in electronics. Since the 1980s, electronics constituted the bulk 
of manufactured exports and dicta ted the performance of the export sector. In recent years, 
however, demand for electronics in the global market has been faltering and dragging the overall 
growth of Philippine exports. While there are significant improvements in exports of chemical 
produc ts, wood manufactures and processed food and beverages, these are largely overshadowed 
by the decline in revenues from electronics.  
In contrast, the phenomenal growth of the information technology -business process 1.9.  
management sector (IT -BPM) that began in e arly 2000 has yet to be matched by other services 
sectors. In 2014, exports of computer and information services and other business services – 
technical and trade -related, collectively labelled here as IT -BPM, amounted to US$17.3 billion or 
70% of total se rvices exports. The other services with substantial shares are travel (19%) and 
transport (7%). Export revenues from telecommunication services have been fluctuating but 
generally declining due to new technologies and market liberalization.  
Table 1.3 Philippine exports of merchandise and services  
(US$ billions ; %)  
 2011  2012  2013  2014  Compound Annual 
Growth Rate (CAGR)  
2006-14 2010-14 
Goods  48.04  52.99  56.70  62.10  3.4  4.8  
Services  18.88  20.44  23.33  24.84  10.6  8.7  
Total  66.92  72.43  80.03  86.94  5.1  5.8  
Source of basic data: Philippine Statistical Authority (PSA) and Bangko Sentral ng Pilipinas (BSP)  
Several factors account for the weaker performance of Philippine exports. One factor is the 1.10.   
concentration of revenues in few goods and services, which exposes the sector to shocks in 
demand and supply of these products. More than two -thirds of goods exports are accounted for by 
the top 10 products which include semiconductor, electr onic data processing, machinery and 
transport equipment, woodcrafts and furniture and chemicals. Yet this is already an improvement 
from 2006 when the top 10 represented 77% of revenues. There is also scope to diversify in 
services exports. The share of IT -BPM has been steadily increasing from 51% in 2006 to 70% in 
2014 as revenues from this industry more than tripled from US$5.7 to US$17 billion in the same 
period.  
 WT/TPR/G/36 8 • The Philippines  
 
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  In the medium - and long -term, the Government plans to continue to fully integrate the 1.11.   
Philippine economy into the global production network. Programmes are underway to provide an 
enabling domestic business environment that facilitates trade and promotes competition so as to 
improve on the delivery of social infrastructures, open up access to pub lic goods and promote 
innovation.  
2  DOMESTIC POLICIES AN D INITIATIVES TO SUS TAIN LONG -TERM GROWTH AND  
IMPROVE THE BUSINESS  ENVIRONMENT FOR INCL USIVE GROWTH  
The Philippines continues to benefit strongly from strong domestic and external demand, 2.1.  
including by sound domestic macroeconomic fundamentals and an accelerating economic recovery. 
According to the World Economic Forum's latest Global Competitiveness Report 2017 -2018, the 
Philippines ranks 56th out of a total of 137 countries, one notch higher than the p revious year’s 
result. In terms of the ease of doing business in the country, the Philippines has been able to 
move up 49 spots in the 2017 World Bank -International Finance Corporation Doing Business 
Report since 2011.  
2.1  Domestic Policies and Initiatives  
2.1.1   Structural Reforms  
To create an environment for inclusive growth and in pursuit of a globally competitive 2.2.  
economy, the current Administration launched the 0+10 -Point Socioeconomic Agenda which 
pursues the realization of inclusive development and the AmBisyon Natin 2040 which sets out 
collective long -term vision and aspirations of Filipino in the next 25 years. With these national 
goals, the Philippine Development Plan 2017 -2022 was launched to operationalize the achievement 
of both campaigns. Furthermore, the Philippine Development Plan espouses a national spatial 
strategy that describes the geographic development challenges and opportunities in population 
and economic growth. The national spatial strategy provides the basis for policies on urban 
development, i nfrastructure development, disaster mitigation, and environmental resource 
protection and conservation. It recommends sustainable human settlements, efficient production, 
and effective service delivery systems.  
These form part of the domestic agenda tasks under the Philippine Development Plan and are 2.3.  
a strong and positive indication of the Philippines’ resolve for creating a more open, 
well-functioning, transparent and competitive environment.  
The Philippines is also pushing for the country’s National Quali ty Infrastructure Strategy. The 2.4.  
objective is to elevate the quality of the products and services produced in the country and to 
ensure consumer safety. The Philippines is taking a significant step towards raising global 
competitiveness and keeping up with the economic reforms being instituted by its neighbours. The 
National Quality Infrastructure Act or Senate Bill was filed on 20 July 2016.  
In line with the infrastructure investment agenda, the Build Build Build (BBB) Program was 2.5.  
launched in 2016 to accele rate infrastructure development and investment to support economic 
and social growth. The BBB identified high impact projects to be implemented within and outside 
the National Capital Region such as railways, urban mass transport, airports and seaports, ro ads 
and bridges, among others. The programme is set to roll until 2022 envisioning the increase of 
productive capacity of the economy, create jobs, increase incomes, and strengthen the investment 
climate leading to sustained inclusive growth.  
2.2  Enhancing Com petition Policy and the Regulatory Environment  
In order to ensure that the Philippines continues to make strides in improving its policy 2.6.  
environment, a number of reform measures and new policies were established.  
A major breakthrough of the Philippines th at took Congress almost two decades is the 2.7.  
enactment on 21 July 2015 of Republic Act No. 10667 or the Philippine Competition Act which 
created the Philippine Competition Commission. Consistent with the national government’s goals 
for inclusive growth, the law is expected to further promote consumer protection and provide for 
the effective enforcement  of anti -trust laws to accelerate investment and boost job creation. To WT/TPR/G/3 68 • The Philippines  
 
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  support the Philippine Development Plan 2017 -2022, the Philippines also formulated a Nat ional 
Competition Policy which provides for a guiding framework for fair market competition.  
To help ensure continued growth in the country through market competition and lower 2.8.  
business transaction costs, the Cabotage Law was amended with the signing on 2 1 July 2015 of 
Republic Act 10668 or the Foreign Ships Co -Loading Act. The law lifts long -standing cabotage 
restrictions imposed on foreign operators by allowing foreign vessels to transport and co -load 
foreign cargoes for domestic transshipment.   
To prom ote foreign participation in the banking and financial sectors, Republic Act 10641 (an 2.9.  
Act Allowing the Full Entry of Foreign Banks in the Philippines) was signed into law on July 2014, 
amending provisions of Republic Act 7721 (an Act of Liberalizing the E ntry and Scope of 
Operations of Foreign Bank in the Philippines) signed in 1994. The law further opened up the 
banking sector to more offshore players. Since its establishment, the Philippines has approved the 
entry of foreign banks from Japan, the Republi c of Korea, Chinese Taipei and Singapore.  
To identify and eliminate regulations and laws that hamper doing business in the country, 2.10.   
the Philippines rolled out “Project Repeal” in June 2016 to cut red tape and streamline business  
transactions and processes.  The project supports the Government’s policy of eliminating laws that 
place a heavy regulatory burden on businesses and improve the country’s overall competitiveness. 
Improvements are planned in more complex areas of competitiveness such as in infrastruct ure, 
government bureaucracy, tax rates and tax regulations, including education, research and 
development, and disaster response.  
2.2.1   Trade Facilitation  
In order to simplify processes and remove unnecessary administrative costs, Republic Act 2.11.   
10863 or the Custo ms Modernization and Tariff Act was signed into law on 13 May 2016 after five 
years in the legislative process. The law amended Presidential Decree No. 1464 or the Tariff and 
Customs Code of the Philippines to simplify, modernize customs rules and procedur es, as well as 
import clearances and valuations procedures, and align these with international best practices. Its 
implementation is expected to result in integrity and improvements in customs service delivery 
and supply chain performance. The Law also man dates the use of information and communications 
technology to ensure efficiency and transparency within the Bureau of Customs. It also increases 
the de minimis value of goods undergoing formal customs entry from PHP 10 to PHP 10,000. The 
Bureau of Customs is in the process of drafting the Implementing Rules and Regulations of the 
said Act.  
2.2.2   Data Privacy  
As the Philippines embraces innovation, policies to cultivate the digital economy were 2.12.   
adopted. To prioritize the protection of sensitive personal data being stored in a digital platform, as 
well as the need for accountability of both public and private sectors handling confidential 
information, Republic Act 10173 or the Data Privacy Act of 2012 was signed into law on 
15 August  2012. The Law sets penalties for unauthorized use of personal and sensitive information 
of up to six years imprisonment and PHP 4 million in fine. If the offender is a government 
employee, he or she could be barred fro m occupying government positions.  
As a comprehensive privacy law, the Act also established the National Privacy Commission 2.13.   
under the Department of Information and Communications Technology, the latter an executive 
department created in 2016 (see 2.5 below ). The National Privacy Commission is mandated to 
enforce policies that balance the right of the private person to privacy with the need to speed up 
the utilization of the internet while ensuring the free flow of information in promoting innovation, 
growth  and national development. The commission monitors and ensures the country's compliance  
with international principles and standards for personal data protection.  
2.2.3   Tax Reform  
In pursuit of a simpler, more efficient, and more equitable tax system to finance a nd 2.14.   
implement the 10 -point socioeconomic agenda, an effort to redesign the current tax system is 
currently undergoing the legislative process. The Tax Reform for Acceleration and Inclusion, or WT/TPR/G/36 8 • The Philippines  
 
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  TRAIN, will consist of low rates and a broad base to promote inv estments, job creation, higher and 
sustained growth, and poverty reduction. TRAIN will propose amendments on several provisions of 
the 1997 National Internal Revenue Code (Tax Code) specifically on lowering of personal income 
tax, simplifying estate and do nor’s tax, expanding the value -added tax (VAT), increasing the 
excise tax on petroleum products, vehicles and sugar -sweetened beverages and certain 
administrative procedures.  
2.3  Manufacturing resurgence  
The future holds promise as the Philippines’ economic performance continues to be driven 2.15.   
by the faster growth of its industries and services.  In 2016, growth of industries recorded at 8.4% 
while services recorded a 7.4% growth. Industries accounted for 33 .9% while services recorded a 
share of 57.3% of the country’s GDP in 2016.  
In 2014, the Philippines launched a new industrial strategy focused on upgrading and 2.16.   
transforming the country's manufacturing sector. The strategy aims to develop competitive, 
innovative, job -generating and inclusive industries particularly in these priority sectors where the  
Philippines has existing and potential comparative advantage to generate employment and 
promote entrepreneurship:  
a. electronic and semiconductor manufacturing s ervices;  
b. automotive and auto parts;  
c. aerospace parts;  
d. chemicals;  
e. shipbuilding particularly, RoRo (roll -on, roll -off) as well as small and medium -sized 
vessels;  
f. design -oriented furniture and garments;  
g. tool and die;  
h. agribusiness particularly, food and resour ce-based processing;  
i. Information Technology -Business Process Management (IT -BPM) particularly, higher 
earning and more complex non -voice services, business process outsourcing (BPO), and 
knowledge process outsourcing (KPO) segments in medical, financial, a nd legal services, 
game development, engineering design in manufacturing, software development and 
shared services;  
j. tourism;  
k. construction; and  
l. transport and logistics.   
 
In addition, the Philippine Development Plan and Investment Priorities Plan aim to ex pand 2.17.   
economic opportunities in the industry and services sectors and to encourage investments in 
targeted areas to provide inclusive growth and spread economic opportunities to a broader 
segment of the population, especially micro, small and medium enterpr ises (MSMEs), women, 
youth and vulnerable groups.  
Alongside the country's vibrant services sector, the manufacturing sector is seen as an  2.18.   
essential driver to economic growth. In the fourth quarter of 2016, the gross value added in 
manufacturing rose to 7.0 %, higher than the 6.1% of the same period in 2015.  In particular, the 
Philippine food manufactures continues to be the largest contributor of the country’s 
manufacturing sector.   
2.4  Services  
2.4.1   Information Technology -Business Process Management (IT -BPM)  
The Philippines’ Information Technology -Business Process Management (IT -BPM) industry 2.19.   
has been one of the country’s best -performing and employment -generating service industries over 
the past several years. For 2016, the IT -BPM industry has generated US$22.9 bi llion and dire ctly 
employed 1.15 million full -time employees. The  IT-BPM industry employs one of the highest 
percentages of female workers, registering an estimated 53% of all employees. This percentage is 
significantly higher than the national figure whic h stands at 39.6%.  WT/TPR/G/3 68 • The Philippines  
 
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  The Philippines will continue to tap and move up the IT -BPM industry’s global value chain to 2.20.   
take advantage of the significant growth potential of services exports. This will be complemented 
by increasing the country’s market share in in ternational tourism, as well as health and education 
services; promote creative industries; and develop the potential of the Philippines in digital trade 
and e -commerce. To support these priorities, services -related statistics will be developed to 
support plan implementation and monitoring.  
The Philippines is addressing the issue of internet access and connectivity options to 2.21.   
augment the existing telecom infrastructure, highlighting the need to adjust market structures to 
foster  competitive behaviour among service providers to bring down prices and stimulate the 
demand for value -added services to drive future broadband development. The Government has 
also instituted the development of suitable locations or Next Wave Cities as a way of generating 
more employm ent and business opportunities in the countryside. The collaborative engagements 
between government and the private sector to enable physical and social ecosystem ensures wider 
portfolio of locations and improve chances of attracting more locators in the s ector.  
One of the salient features of the overall growth strategy is its emphasis on investment. In 2.22.   
particular, driving this area of the economy is the Comprehensive National Industrial Strategy. 
Since 2014, the strategy has produced several industrial roa dmaps. The industrial strategy aims 
for a stronger linkage of agribusiness, manufacturing and services. Apart from the IT -BPM sector, 
which has remained a major growth driver of the country, the services roadmap focuses on the 
development of labour -intensi ve sectors like tourism, construction, ship repair, aircraft MRO 
(maintenance, repair and overhaul), logistics and infrastructure investments. The industrial 
strategy is targeted for implementation until the end of 2025. Based on data thus far, the 
industr ial strategy has yielded investments and accelerated expansions in the recent years.  
Table 2.1 Investment performance  
(growth rate in % constant 2000 prices)  
Item  2010  2011  2012  2013  2014  2015  2016  
Capital Formation  31.6 2.8 -4.3 27.9 4.2 18.4 23.7 
  A.   Fixed Capital  19.1 -1.9 10.8 11.8 7.2 16.9 25.2 
  1.   Construction  17.5 -8.2 17.4 10.3 8.5 11.0 15.1 
  2.   Durable Equipment  25.5 2.7 7.0 15.0 6.3 23.0 34.5 
  3.   Breeding Stock & Orchard Dev’t  0.3  -0.3  1.4  -1.5  -1.3  2.0  3.6  
  4.   Intellectual Property Products  2.9 11.4 17.5 16.6 25.9 27.6 34.2 
  B.   Changes in Inventories  101.5  3849.8  -311.2  -144.0  -75.9 197.1  -46.1 
Source:  Philippine Statistics Authority  
2.4.2   Financial services  
Microfinance  
The Bangko Sentral ng Pilipinas (BSP; Central Bank of the Philippines) declared microfinance 2.23.   
as its flagship program me for poverty alleviation in the year 2000.  Since then, it has been 
proactive in the development of microfinance in the banking system in terms of: (a) policy and 
regulatory environment; (b) training and capacity building within the BSP and the banking sector; 
and (c) promotion and advocacy. As a result, microfinance has become fully mainstreamed in the 
banking sector and more innovative pro ducts have been developed by the market to respond to 
the demand for a wider range of products beyond microcredit. These include micro -agri loans 
(Circular  748), housing microfinance (Circular 678), micro -deposit (Circular 694), and 
microinsurance (Circula r 683). In 2016, there were 168 banks with microfinance operation serving 
1.7 million clients with outstanding microfinance loans amounting to PHP 13.7 billion.  
The success of microfinance efforts emboldened the BSP move towards the broader goal of 2.24.   
financ ial inclusion. To provide greater access to financial services especially to those who are 
traditionally underserved and un -served, the BSP has enabled the establishment of micro -banking 
offices or MBOs (Circular 694) which are designed to be set up in are as where it is not feasible to 
establish a regular branch. In 2016, there were 691 micro -banking offices present in 418 cities and 
municipalities, of which 81 are being served by micro -banking offices alone. The BSP has also  
developed an enabling environme nt for a retail electronic payments system through electronic 
money (Circular 649) which can provide a channel for transactions and financial services. To date, WT/TPR/G/36 8 • The Philippines  
 
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  there are 35 e -money issuers (29 banks, 6 non -banks) and a wide agent network of more than 
19,000 active cash -in and cash -out cent res. In 2015, there were 327 million transactions in 
e-money.  
Building on the gains of its policy initiatives, the BSP continues to create an enabling 2.25.   
regulatory environment for financial inclusion. This time, it is sett ing its sights on digital 
innovations as the primary catalyst to reach greater scale. Digital financial inclusion offers the 
promise of expanding the reach of financial services in the country at a much lower cost 
benefitting both the consumers and the pro viders. Precursor to the establishment of a digital 
finance ecosystem is the issuance of Circular 940 which allows banks to use third party cash 
agents as a cost -efficient service delivery channel.  With cash agents, banks will be able to 
strategically lev erage on innovative digital banking solutions to onboard clients and expand their 
market, even in the low -income areas long considered as unviable by bigger banks.           
In light of the importance and multi -dimensional nature of financial inclusion, th e BSP led 2.26.   
the implementation of the National Strategy for Financial Inclusion (NSFI) to help raise the level of 
awareness on financial inclusion issues, build trust among various stakeholders, identify the best 
modalities for coordination, and ensure relev ance at the national level. The National Strategy for 
Financial Inclusion aims to systematically accelerate the level of financial inclusion in the 
Philippines through greater collaboration between public and private sector stakeholders. It  
provides a plat form for public -private partnerships to harmonize initiatives and foster a more 
efficient process to achieve the shared vision of financial inclusion that contributes to inclusive 
growth.  
Banking Services  
To promote foreign participation in the banking an d financial sectors, Republic Act 10641 2.27.   
(An Act Allowing the Full Entry of Foreign banks in the Philippin es) was signed into law in 
July 2014, amending provisions of Republic Act 7721 (An Act of Liberalizing the Entry and Scope of 
Operations of Foreign Ban k in the Philippines) signed in 1994. The Law further opened up the 
banking sector to more offshore players. Since its establishment, the Philippines has approved the 
entry of foreign banks from Japan, the Republic of Korea, Chinese Taipei , and Singapore.  R. A. 
No. 7721 as amended by R.A. No. 10641 also provides the legal framework to enable the 
Philippines to participate and implement the ASEAN Banking Integration Framework (ABIF). With 
these laws as a guide, the BSP may engage in bilateral ABIF negotiatio ns with other ASEAN 
Member States to agree on reciprocal arrangements that will facilitate the entry of Philippine banks 
in the other ASEAN Member States, and entry of banks from one ASEAN Member State into the 
Philippines.  On 6 April 2017, the BSP signed  a Declaration of Conclusion of Negotiations with Bank 
Negara Malaysia, and Letter of Intent with Bank of Thailand. Talks are underway with State Bank 
of Viet  Nam, and Otoritas Jasa Keuangan (OJK) on a possible ABIF agreement.  
2.4.3   Tourism  
Keeping pace with the  growth of the BPO -IT sector, the Philippines continues to be a 2.28.   
favoured and emerging tourism destination.  The contribution of tourism to the economy was 
estimated at 8.6% in 2016.  The tourism direct gross value added amounted to PHP 1,243.5 billion 
in 2016, higher by 13.7% compared to previous year’s PHP 1,093.4 billion. Projects are underway 
to further tap local resources to attract domestic and international tourists, particularly through 
improvements in infrastructure (airports, r ail and road connectivity) as well as tourist services and 
facilities.  
2.4.4   Logistics  
The Philippines seeks to reinvigorate its logistics sector to have a better chance in its bid to 2.29.   
be a choice business destination in the Asia -Pacific region and to better supp ort the ease of doing 
business in the country. In an effort to improve its maximum productive capacity, expenditures on 
public infrastructure will be increased to at least 5% of GDP annually. Demand for construction -
related manufactures such as basic metal s, fabricated metal products, and transport equipment, 
among others, is expected to grow.  WT/TPR/G/3 68 • The Philippines  
 
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  In addition, a number of improvement projects for the port system, including the Roll -on- 2.30.   
Roll-off (RoRo) network and conduct of feasibility and engineering studies, were undertaken to 
ensure efficient operations and prepare the country’s port system for regional integration with the 
rest of the ASEAN.  
The Philippines also seeks to improve backbone services, such as financial, 2.31.   
telecommunications, distribution, transpor t, and logistics services to facilitate the movement of  
people, goods, services, knowledge, and ideas as well as link firms, especially MSMEs, to domestic 
and global markets. Investments in adequate infrastructure and   logistics will also boost the 
country ’s overall competitiveness, improve connectivity and reduce costs.  
2.5  Innovation and Development  
The Philippines has made considerable efforts in promoting a greater dive into innovation 2.32.   
and fostering an enabling policy and regulatory environment particularl y for its business sector. 
Several roadmaps were rolled out linked with improving the country ’s competitiveness, 
productivity, and overall economic growth. These include,  among others, the Philippine 
E-commerce Roadmap 2016 -2020 launched in December 2014; the Philippine Roadmap for Digital 
Start-ups: 2015 and Beyond in August 2015; the Philippine  IT-BPM Roadmap 2022 in 
October  2016; and the National Broadband Plan in August 2017.  As mentioned briefly above, the 
Department of Information and Communications Technology was created in May 2016 to plan, 
develop and promote the country’s information and communications technology agenda in support 
of national development.   
In August 2016, the Department of Trade and Industry launched the QBO Innovation Hub 2.33.   
which caters for startups and innovation entrepreneurs and aims to link innovators, investors, 
academic institutions, start -up mentors, funders and enablers, as well as various industry partners 
and stakeholders from both public and private sectors. Steps are be ing undertaken to strengthen  
linkages with the academe and industry partners in pursuing leading -edge, commercial -ready 
innovations.  
2.6  Enhancing the Participation of Micro, Small, and Medium Enterprises (MSMEs) in 
Global Markets  
With a supportive market envi ronment in the background, domestic producers could thrive, 2.34.   
find their niche, and take advantage of scale and scope economies in the global value chain.  In 
the Philippines, as of 2015, MSMEs accounted for 61.6% of total employment generated and 
approximat ely 35% of GDP.  Their progress will directly contribute to the attainment of inclusive 
growth. With t his in mind, the Philippines continues to push the MSME agenda and seeks to 
address key challenges in their development and search for prosperity.   
The G o Negosyo Act was signed into law on 15 July 2014 and took effect on 2.35.   
13 January  2015 to strengthen MSMEs ' development and boost job creation.  Following created 
Negosyo (business) Centers in cities and municipalities to provide accessible services for MSME s 
and facilitate hassle -free transactions. In 2016, the Philippines established a total of 298 Negosyo 
Centers.  
With a view to making growth more inclusive, the Microfinance NGOs Act was signed into 2.36.   
law in November 2015. In 2016, its implementing rules and  regulations were signed. The Act 
provides opportunities for financial assistance to Filipino businesses and entrepreneurs who would 
otherwise be turned away by financial institutions because of their perceived “unbankability”.  
In line with the current adm inistration's directive to provide affordable micro -financing 2.37.   
program mes for MSMEs, the Philippines established the Pondo sa Pagbabago at Pag -asenso (P3, or 
fund for change and progress) program me to provide microenterprises an alternative source of  
financ ing that is easy to access and is made available at a reasonable cost. The program me is also 
expected to give a boost to the development of the MSME sector. It was designed to bring down 
interest rates of microfinance services and products to cater to micr o-entrepreneurs or enterprises. 
Under the 2017 General Appropriations Act (GAA), the Government has included an initial funding 
of PHP 1 billion for financial assistance for micro and small bus inesses in the next five years.  WT/TPR/G/36 8 • The Philippines  
 
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  The Philippines is working towa rds improving the microfinance industry, particularly in terms 2.38.   
of credit access, usage and quality of microfinance products, and the impact on the borrower or 
consumer welfare.  
2.7  Standards and Technical Regulations  
The Consumer Act of the Philippines mandate s the Department of Agriculture, Department 2.39.   
of Health and the Department of Trade and Industry to develop and implement quality and safety 
standards for consumer products, including performance or use -oriented standards, codes of 
practice and methods of te sts. There are also specific laws that mandate different agencies to 
develop and implement standards for sectors such as energy (Department of Energy), 
environment (Department of Environment and Natural Resources) and telecommunications 
(National Telecommu nication Commission), among others.  
The Bureau of Philippine Standards (formerly known as the Bureau of Product Standards) of 2.40.   
the Department of Trade and Industry, as established by the Standards Law, is the recognized 
National Standards Body and acts as t he national repository of Philippine National Standards. As 
such, it promulgates draft standards as Philippine National S tandards developed by 
standards -setting bodies such as the Department of Agriculture and the Department of Health.  
As of 1 October 2017 , there are 10,091 Philippine National Standards developed, 79.92% or 2.41.   
8,065 of which were aligned with international standards.  
From th is total number of formulated PNS, the Bureau of Product Standards declared 72 2.42.   
under its list of Philippine National Standards for mandatory certification. The products which are 
regulated and subjected to tests and inspections by the standards body are included in the said list 
for mandatory certification.  
Aside from acting as the national repository, the Bureau of Prod uct Standards develops 2.43.   
technical regulations to implement the requirements specified in the Philippine National Standards.  
It regulates electrical and electronic products such as household appliances, lamps and related 
products, wiring devices, and wires and cables. It also regulates mechanical/building and 
construction materials; and chemical and other consumer products. Regulated products must 
undergo mandatory product certification where importers may opt to utilize either of the two 
product certificati on schemes: Import Commodity Clearance Scheme or Philippine Standard (PS) 
Quality and/or Safety Certification Scheme.  
Aside from the Bureau of Product Standards, the other government agencies involved in the 2.44.   
regulation of products are the Department of Hea lth’s Food and Drug Administration, the  
Department of Agriculture’s Bureau of Agriculture, the National Telecommunications Commission 
and the Department of Environment and Natural Resources ' Environment Management Bureau.  
The Bureau of Philippine Standard s is the designated WTO -Technical Barriers to Trade (TBT) 2.45.   
National Enquiry Point and the National Notification Authority, ensuring that technical regulations 
that may have significant effect on trade of other WTO members are notified to the WTO 
Secretariat . In this regard, the Philippines have notified 70 technical regulations since 2011 which 
were implemented by several regulatory agencies.  
3  INDUSTRY AND TRADE P OLICY DEVELOPMENTS  
3.1  The Philippines and the WTO  
The Philippines has been a WTO Member since 1  January 1995 and a Member of the GATT 3.1.  
since 27 December 1979.  
The Philippines is a signatory to the following subsequent WTO covered agreements:  3.2.  WT/TPR/G/3 68 • The Philippines  
 
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  3.1.1   Multilateral Agreements  
3.1.1.1   2005 Protocol Amending the TRIPS Agreement  
WTO Members on  6 December 2005  approved changes to the WTO’s intellectual property 3.3.  
(TRIPS) Agreement in order to make permanent a decision on patents and public health originally 
adopted in 2003. This was formally built into the TRIPS Agreement after acceptance of the Protocol 
amending the TRIPS Agreement by two -thirds of the WTO’s Members. The amendment took effect 
on 23 January 2017 and replaced the  2003 waiver  for Members who have accepted the 
amendment.  
The Philippines accepted the Protocol on 30 March 2007.  3.4.  
3.1.1.2   2014 Protocol concerning the Trade Facilitation Agreement  
On 27 November 2014, the GC  adopted  the Protocol of Amendment to insert the WTO Trade 3.5.  
Facilitation Agreement into Annex 1A of the WTO Agreement (“the Protocol”), and opened it for 
acceptance by Members. According to the WTO Agreement, a Member formally accepts  the 
Protocol by depositing an “ Instrument of Acceptance ” for the Protocol with the WTO.  
As stipulated in the Protocol, it shall enter into force in accordance with Article X:3 of the 3.6.  
WTO Agreement. Namely, the Protocol shall tak e effect upon acceptance by two -thirds of the 
Members for the Members that have accepted the Protocol; thereafter, the Protocol shall take 
effect for each other Member upon acceptance by it. 
The Philippines accepted the Protocol on 27 October 2016.  3.7.  
3.1.2   Plurilateral Agreement s 
3.1.2.1   Information Technology Agreement  
The Information Technology Agreement (ITA) was concluded by 29 participants at the 3.8.  
Singapore Ministerial Conference in December 1996. Sin ce then, the number of participants has 
grown to 82, rep resenting about 97% of world trade in IT products. The participants are 
committed to completely eliminating tariffs on IT products covered by the Agreement. At the 
Nairobi Ministerial Conference in De cember 2015, over 50 Members concluded the expansion of 
the Agreement, which now covers an additional 201 products valued at over US$1.3 trillion per 
year.  
The Philippines, as an active Member of the WTO, ensures that its stakeholders are consulted 3.9.  
throug h the WTO National Advocacy and Consultations Programme. Furthermore, the country has 
been actively supporting an advocacy on micro, small and medium -sized enterprises (MSMEs) with 
the vision to enable MSMEs to be active players in the global market via co ntinuing discussions on 
the role and importance of the MSMEs in the economic environment.  
3.2  Participation in the Doha Development Agenda (DDA) Negotiations  
The Philippines is of the view that the WTO , given its multilateral nature , offers the widest 3.10.   
possibility for stronger sets of alternatives to fully address trade issues while factoring in capacity 
constraints brought about by differences in the levels of economic development among its 
Members. Thus, the country is committed to t he preservation of the DDA mandates and to 
eventually complete an ambitious and balanced agenda with the economic development of its 
Members being made central. This necessarily includes keeping the principle of the single 
undertaking intact.  
3.2.1   Agriculture  
The Philippines supports the importance of the inter -linkage of commitments in the three 3.11.   
pillars – market access, export subsidies, and domestic support – to attain overall balance of 
reform commitments and make the multilateral trading system , through the WTO, fair, 
market -oriented and sustainable.  WT/TPR/G/36 8 • The Philippines  
 
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  The Philippines believes that the agriculture negotiating elements prescribed in the DDA 3.12.   
must be pursued. The DDA’s development objectives and promises, through the integration of 
meaningful special and different ial treatment mechanisms, are fundamentally important in 
improving agriculture production and trading prospects of the developing countries. They are 
likewise essential in attaining  food security, livelihood security and rural development.  
In view of the f oregoing, the Philippines is committed to preserv ing the remaining trade 3.13.   
policy space for agriculture, specifically for strategic sensitive sectors. The country believes that 
recent developments in the area of export subsidies must be upheld by those heavy  subsidizers by 
amending their commitments on export subsidies in accordance with the ministerial mandate 
delivered in Nairobi. It is also deeply committed to pursue the Special Safeguard Mechanism (SSM) 
as a meaningful remedy to effectively and expeditiou sly counter import surges and/or price 
declines.  
3.2.2   Services  
The Philippines is committed to accord ing appropriate consideration to  the needs of MSME 3.14.   
service suppliers and will continue to push for the exercise of op tions by member countries 
(i.e. where commi tments will be made, apply horizontal limitations to all services; invoke general 
exceptions to justify existing regulations or to enact new ones in pursuance  of legitimate public 
policy concerns; and invoke restrictions to safeguard the balance -of-payment s).  The Philippines 
supports the importance of maintaining the request -and-offer approach to ensure market access in 
sectors of interest to the Philippines and to preserve the flexibility of the Philippines to determine 
sectors and modes to commit.  
3.2.3   Intell ectual Property  
During the period under review, the Philippines enacted laws and promulgated rules and 3.15.   
regulations to ensure adequate and effective protection and enforcement of intellectual property 
rights.  Republic Act (R.A.) No. 8293, or the Intellectu al Property Code of the Philippines (IP Code), 
the primary statute on intellectual property, has been amended, the latest of which is through the 
passage of Republic Act No. 10372 of 2013.  
Republic Act No. 10372 took effect on March 2013 and introduced th e following salient 3.16.   
provisions: (a) establishment of a Bureau of Copyright and Other Related Rights within the 
Intellectual Property Office of the Philippines (IPOPHL), which shall be responsible, among others, 
for the accreditation of collective managemen t organizations or societies designated by copyright 
holders to collectively manage their economic or moral rights on their behalf; (b) granting of 
related rights for performances fixed in audiovisual works or fixations; (c) inclusion of a copyright 
limita tion in favour of blind, visually - and reading -impaired persons; (d) enumeration of acts 
constituting copyright infringement to also include those benefiting from the infringing activity of 
another person, with notice of the infringing activity and the rig ht and ability to control the 
activities of the infringer, and those who knowingly induces, causes or materially contributes to the 
infringing conduct of another; and (e) awarding of double the amount of damages and imposition 
of the maximum penalty for co pyright infringement committed through the circumvention of 
technological protection measures or the alteration of rights management information.  
The following laws were also passed to complement the IP Code and strengthen the IP 3.17.   
regime of the Philippines:  (a) Republic Act No. 10175 or the Cybercrime Prevention Act of 2012, 
which among others, prohibits and penalizes cybersquatting and violations of laws committed by, 
through, and with the use of information and communication technologies; (b) Republic Act No. 
10515 or the Anti -Cable TV & Cable Internet Tapping Act of 2013, which among others, prohibits 
and penalizes the theft of cable TV and cable internet signal; (c) Republic Act No. 10365 or the Act 
Amending the Anti -Money Laundering Act, which among othe rs, provides that violations of the IP 
Code are considered as unlawful activities for purposes of anti -money laundering offenses; and 
(d) Republic Act No. 10863 or the Customs Modernization and Tarrif Act of 2016, which prohibits, 
among others, the importa tion or exportation of IPR infringing goods and provides for the power of 
the Bureau of Customs to effect seizures of infringing goods and its disposal.  
On the negotiation in the TRIPs Council for the establishment of a multilateral system of  3.18.   
notification and registration of geographical indications for wines and spirits, the Philippines WT/TPR/G/3 68 • The Philippines  
 
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  maintains its support for the position that participation to the multilateral register should be on a 
voluntary basis, and that the implementation of the system should not impose undue financial and 
administrative burdens and costs on developing and least developed countries. In addition, the 
multilateral register should not prejudice existing intellectual property rights, such as trademarks 
and service marks, and whenever a  conflict with a third party arises, the same should be resolved 
in accordance with national legislation.  
The Philippines also continues to support the commitment to address implementation 3.19.   
concerns provided it does not result in a reversal in the whole of the commitments made and 
implemented under the Uruguay Round.  It also believes in strengthening the S&D provisions and 
that there should be no carve out provisions for selected developing countries only.  
3.2.4   Rules  
The Philippines continues the work at maintaining the existing investigative procedures and 3.20.   
discretion of authorities in pursuing trade remedies such as  anti-dumping and countervailing 
duties. It also strives to work towards the development of further disciplines on subsidy practices, 
especia lly by developed countries.  The Philippines supports the development of predictable 
disciplines on fisheries subsidies to reverse over -capacity and over -fishing but artisanal or 
community fishing must be exempted.  On regional trading agreements (RTAs), t he Philippines is 
of the view  that any resulting rules on RTAs should be able to accommodate existing RTAs and 
provide the leeway to negotiate other bilateral and/or regional FTAs and EPAs particularly in 
respect of any agreed disciplines on transparency and related definitions on "substantially all 
trade".  
3.2.5   Trade Facilitation  
The Philippines’ Instrument of Acceptance of the Protocol Amending the Marrakesh 3.21.   
Agreement Establishing the WTO was signed by the Office of the President on 19 October 2016 
and deposi ted with the WTO on 27 October 2016, making the Philippines  the 95th WTO Member 
to ratify the TFA. To date, 122 WTO Members have accepted the Protocol of Amendment to insert 
the TFA into Annex 1A of the WTO Agreement.  
The Philippines notified 28 provisio ns under Category A 1 (Annex A) to the WTO on 3.22.   
31 July 2014. Categories B 2 and C 3 commitments are being finalized by the Bureau of Customs 
(BOC).  Further, the Philippines will need to facilitate the creation of its National Committee on 
Trade Facilitation (NCTF) to oversee both domestic coordination and the implementation of the 
TFA, with BOC as the lead agency in coordination with the TCWM members.  
3.2.6   Dispute Settlement Understanding  
DS371 (Thailand – Customs and Fiscal Measures on Cigarettes from the Philippines) is a 3.23.   
WTO dispute settlement case filed by the Philippines against Thailand  in September 2008 for a 
violation of the WTO Customs Valuation Agreement (CVA). In its November 2010 ruling, the Panel 
found Thailand liable for improperly rejecting an importer’s declared transaction values for 
cigarettes imported from the Philippines an d then for determining alternative customs values, in 
violation of the WTO CVA. The Panel also found that Thailand acted inconsistently with the 
provisions of the General Agreement on Tariffs and Trade (GATT). In May 2016, the Philippines 
requested consult ations with regard to the first compliance proceedings pursuant to Article 21.5 of 
the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). The 
Philippines requested the establishment of a compliance panel, wh ich was establishe d in 
December  2016. To ensure that the hard -won WTO ruling in favour of the Philippines will not be 
nullified, the Philippines pursued supplemental compliance proceedings against Thailand in relation 
                                                
1 Under Article 14.1(a): (Categories of Provisions) of the WTO TFA, Category A are those commitments 
which can be implemented upon entry into force of the WTO TFA in the case of  developing countries. For 
LDCs, these will be implemented within one year afte r entry into force of the WTO TFA.   
2 Under Article 14.1(b): (Categories of Provisions) of the WTO TFA, Category B are those commitments 
which will need additional time to implement (i.e., for developing countries and LDCs).  
3 Under Article 14.1(c): (Cate gories of Provisions) of the WTO TFA, Category C are those commitments 
which will need additional time with corresponding technical assistance to implement (i.e., for developing 
countries and LDCs).  WT/TPR/G/36 8 • The Philippines  
 
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  to the Thai “2002 -2003 Charges” and DS371. The DSB final  report is expected to be issued in the 
first quarter of 2018.  
Presently, the Philippines is involved in one active case (DS 371) and is a third party to 3.24.   
seven cases.  
3.3  Bilateral and regional trade relations  
The Philippines has adopted a parallel three -prong ed strategy to increase the country’s 3.25.   
presence in the European region. Two of these strategies capture the country’s interest in the 
European Union (EU) through the inclusion of the Philippines in the list of beneficiaries under the 
EU Generalised System o f Preferences (GSP) -Plus and the ongoing negotiations for an FTA. To 
have a wider reach in the region, the Philippines, as its third strategy, has also negotiated an FTA 
with the European Free Trade Association (EFTA).  
The exploratory FTA scoping meetings between the Philippines and the EU started in 2013. 3.26.   
It includes discussions on the objectives and key principles of the FTA negotiations. The launch of 
the FTA negotiations was announced by both sides on 11 December 2015.  
Two rounds of negotiations have be en held. The areas covered so far are: trade in goods 3.27.   
(text and market access); sanitary and phytosanitary measures; rules of origin; customs and trade 
facilitation; services; investments; intellectual property rights; government procurement; trade 
and sus tainable development; and legal and institutional issues (LII).  
The Philippines also signed a bilateral FTA with the European Free Trade Association on 3.28.   
28 April 2016.  
The Philippines’ ASEAN chairmanship coincides with a historic milestone event, namely th e 3.29.   
50th anniversary of the founding of the Association of Southeast Asian Nations (ASEAN). The 
theme “Partnering for Change Engaging the World” reflects the Philippine Government’s advocacy 
to promote unity with and among ASEAN member states and its global partners.  
Leaders from twenty countries from the ASEAN Member States, Australia, China, India, 3.30.   
Japan, New Zealand, Republic of Korea, Russia, United States, Canada, European Union, and the  
United Nations Secretary General gathered in Manila in 10 -14 Novemb er for the 31tst ASEAN 
Summit and Related Summits. The Philippine Chairmanship of ASEAN also coincided with 
important anniversaries such as the ASEAN’s 40th Anniversary Commemorative Summits with the 
United States of America, Canada and the European Union;  20th ASEAN Plus Three 
Commemorative Summit; the 20th ASEAN -China Summit, 19th ASEAN -Republic of Korea Summit; 
20th ASEAN -Japan Summit; 12th East Asia Summit; 15th ASEAN -India Summit; and the 9th 
ASEAN -UN Summit.  
On the sidelines of the 31st ASEAN Summit a nd Related Summits on 12 November 2017 in 3.31.   
Manila, the signing of the ASEAN -Hong Kong, China Free Trade Agreement and ASEAN -Hong Kong 
Investment Agreement took place. These two Agreements are part of the region’s continuous 
efforts in expanding external eco nomic relations to foster greater trade opportunities for the 
ASEAN Economic Community. This will ensure more opportunities for ASEAN products by providing 
greater market access for their products and sustained flow of foreign direct investments. Further, 
these agreements would provide job opportunities for people and enhance collaboration among 
businesses, particularly MSMEs.  
The ASEAN -Hong Kong, China Free Trade Agreement is ASEAN’s sixth free trade agreement 3.32.   
with external partners, after ASEAN -China FTA,  ASEAN -Korea FTA, ASEAN -Japan Comprehensive 
Economic Partnership, ASEAN -India FTA and ASEAN -Australia -New Zealand FTA. It covers trade in 
goods, rules of origin, non -tariff measures, customs procedures and trade facilitation, trade 
remedies, technical barr iers to trade, sanitary and phytosanitary measures, trade in services, 
intellectual property rights, and economic and technical cooperation.  
Hopes are high for the Agreement to provide more opportunities for MSMEs as well as to the 3.33.   
country’s export industr ies given Hong Kong, China’s role as gateway to the China market and  
inbound tourism arrivals.  WT/TPR/G/3 68 • The Philippines  
 
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  The ASEAN Consensus on the Protection and Promotion of the Rights of Migrant Workers 3.34.   
was also signed by the Heads of States/Governments. The signing of the ASEAN  Consensus is a 
historic milestone as 2017 marks the 50th  anniversary of ASEAN and the tenth year since the 
adoption of the ASEAN Declaration on the Protection and Promotion of the Rights of Migrant 
Workers, known as the Cebu Declaration.  
The ASEAN Consens us stipulates the general principles, fundamental rights of migrant 3.35.   
workers and members of their families, specific rights of migrant workers, obligations and 
commitments of ASEAN Member States. It aims to establish a framework for closer cooperation  
among member states on addressing migrant workers’ issues in the region.  
4  FUTURE POLICY DIRECT IONS  
By the end of 2022, more Filipinos will be closer to achieving their AmBisyon for a Matatag, 4.1.  
Maginhawa at Panatag na Buhay (Ambition/Vision for a stable, co mfortable and secure life). 
Inclusive growth, a high -trust and resilient society, and a globally competitive knowledge economy 
will be attained through the emphasis on Malasakit, Pagbabago  and Patuloy na Pag -unlad .  
- Enhancing the social fabric (Malasakit ). The aim is to regain peoples’ trust in public 
institutions and cultivate trust in fellow Filipinos. Public offices will be people -centered, 
efficient and clean while administration of justice will be swift and fair. Filipinos will be more 
aware of, and will learn to value, the country's diverse cultures and shared heritage.  
- Inequality -reducing transformation  (Pagbabago ). For each economic sector, this means 
more opportunities for growth of output and income; lagging sub -sectors and economic 
groups lik e small farmers and fisherfolk, and MSMEs, will benefit. Individuals and people 
groups will have more options to develop their full potential and vulnerability of individuals 
will be reduced. Communities will be more resilient in line with the new urban ag enda of 
integrated neighborhoods and sustainable communities.   
- Increasing potential growth . Growth can be further enhanced by reaching for and harvesting 
the demographic dividend. A vibrant knowledge economy will propel the country on a higher 
growth pat h, since it produces higher value output and is more resilient to geo -climatic 
changes.  
- Enabling and supportive economic environment. Inclusive growth will be achieved with an 
enabling and supportive economic environment.  Macroeconomic stability will be  maintained; 
fiscal prudence will be observed; strategic trade policy will be implemented. Policies, laws 
and regulations will be reviewed and measures will be undertaken to enhance market 
competition.  
- Foundations for sustainable development. All of these will be underpinned by ensuring 
national security against internal and external threats.  At the same time, territorial integrity 
and sovereignty will be upheld and protected. The next six years will be characterized as the 
“golden age of infrastructure”  in the Philippines. An important partner of development is the 
environment and natural resources sector, and maintaining its integrity is crucial for the long 
term.  
- Migration and development. The current Philippine Development Plan gives deliberate 
attention to the special circumstances of Overseas Filipinos and their families, in pursuit of 
the national policy to empower Overseas Filipinos towards inclusive and sustainable 
development.  
 
  WT/TPR/G/36 8 • The Philippines  
 
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