WT/TPR/M/368  
25 May 2018  
(18-3140) Page: 1/50 
Trade Policy Review Body  
26 and 28 March 2018   
 
  
TRADE POLICY REVIEW  
THE PHILIPPINES  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Juan Carlos González (Colombia)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F THE PHILIPPINES  .......................  4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  8 
4  STATEMENTS BY MEMBER S ................................ ................................ ........................  11 
5  REPLIES BY THE REPRE SENTATIVE OF THE PHI LIPPINES AND ADDITIO NAL 
COMMENTS  ................................ ................................ ................................ .....................  40 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  47 
7  ELECTION OF A NEW CH AIRPERSON OF THE TPR B ................................ .....................  49 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by the Philippines  are reproduced in document WT/TPR/M/ 368/Add.1  and will be available 
online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/368 • The Philippines  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The fifth Trade Policy Review of the Philippines was held on 26 and 28 March 2018. The 
Chairperson, H.E.  Mr Juan Carlos Gonzalez (Colombia), welcomed the delegation of the Philippines, 
headed by H.E. Dr Ceferino Rodo lfo, Undersecretary of Trade and Industry; the rest of the 
delegation; and the discussant, H.E. Ambassador Stephen de Boer (Canada).   
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by the Philippines  was co ntained in document 
WT/TPR/G/368  and that of the  WTO Secretariat in WT/TPR/S/368 . The Chairperson also inform ed 
Members  that, as indicated in the addendum to the airgram, there would be a second agenda item 
at the end of  the first session, namely the election of a new Chairperson of the TPRB.  
1.3.  Questions by the following delegations had been submitted in writing before the deadline: 
Japan; Canada; Peru; Chile; El Salvador; Argentina; Australia; Dominican Republic; European 
Union; Norway; China; United States; Ukraine; Brazil; and Thailand . The following delegations 
submitted written questions after the deadline: Singapore; New Zealand; Indonesia; Malaysia; 
Chinese Taipei; Republic of Korea; and Turkey . 
1.4.  During the previous TPR meeting, Members had commended the Philippines for its positive 
economic performance. It had been  noted then that this performance had been  based on a 
relatively open trade regime, supported by high inflows of remittances and a fisc al stimulus in 
response to the global economic crisis. Nonetheless, Members  had noted that the economy had 
been operating below potential and had encouraged the Philippines to speed up reforms, further 
improve its business environment and liberalize its FD I regime in order to raise productivity and 
compete more successfully vis -a-vis neighbouring economies with lower costs . During the current 
review period, the Philippines ' real GDP had expanded at an annual average rate of about 6%, per 
capita GDP had increased, and poverty rat es had declined. The Secretariat 's report noted  that high 
growth rates had been  achieved on the back of a prudent fiscal policy, aiming at strengthening 
resilience and building a fiscal buffer, while at the same time infrastructure sp ending had stepped 
up substantially. Trade had  played an important role in the current growth phase, which had been  
marked by a strong growth of manufactured exports, in particular of electronics and electrical 
goods, as well as by buoyant exports of servi ces, in particular the success of its business process 
outsourcing sector.  
1.5.  At the time of the previous Review, Members had praised the Philippines for its strong 
commitment to the multilateral trading sys tem. Indeed, the Philippines had  continued to 
partic ipate very actively in the WTO. During the period under re view, it  had provided well over 
300 notifications. However, according to the Secretariat report some notifications remain ed 
outstanding, notably in the area of agriculture. In October 2016, the Phil ippines had ratified the 
Trade Facilitation Agreement. It  had notified its category "A" commitments, in August 2014, and 
the authorities were currently working on category "B" and "C" commitments. Members had  
expressed an interest in learning further about  this through their advance questions.  
1.6.  While being an active WT O Member, the Philippines granted  preferential treatment to a total 
of 15 partners namely the other nine parties of ASEAN, plus Australia, New Zealand, China, India, 
Japan, and the Repu blic of  Korea, all of which had  negotiated agreements with ASEAN.  
1.7.  With regard to  trade policy, the Secretariat r eport noted  that the Philippines ' average applied 
MFN tariff was 7.6%, up from 6.4% at the time of the last Review. 65% of tariff lines, including all 
agricultural lines, were bound and the simple average bound rate was 25.7%. A wide range of 
tariff and tax exemptions were provided under specific laws impacting governm ent revenues. The  
use of contingency measures had  remained very limited during the period under review.  
1.8.  Other important trade and trade related reform initiatives had been  undertaken during the 
review period, notably in the investment regime. While the  Philippines continued  to limit foreign 
investment in a number of activities through the use of a negative list, the Secretariat r eport noted 
that it had  also taken some liberalizing steps including the elimination of FDI restrictions for 
professional services  and banking services. Members recall ed that during its last Review, the 
Philippines had been  encouraged to adopt competition legislation and further promote competition 
in the economy. An important step in this area had been  the adoption of the Philippine s' first WT/TPR/M/368 • The Philippines  
 
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  Competition Act in 2015, and the establishment of a competition authority in 2016. Some advance 
questions for this TPR relate d to competition enforcement. Furthermore, new legislation on public 
procurement had entered into force in 2016. As it had been the case for the previous TPR, 
Members ' advance questions indicate d that they wish ed to learn further about the public 
procurement regime. Also, a new Food Safety Act had been  promulgated in 2013 and its 
implementing legislation had entered into forc e in 2015. On the othe r hand, the Philippines ' 
SPS-related i mport requirements for food had  remained largely unchanged. Some of the advance 
question s by Members, as it had been  the case for the previous TPR, relate d to this area.  
1.9.  The Chairperson drew Membe rs' attention to other areas included in the advance written 
questions where Members were interested in receiving further information. These include d: import 
licensing and restrictions, the import regime for rice, pre -shipment inspection, standards and 
technical regulations, local content requirements, registration and inspection requirements, export 
performance requirements, protection and enforcement of intellectual property rights, and rules 
for foreign participation in the telecoms and financial service s sectors.  
1.10.   This meeting would  be a good opportunity for Members to discuss in greater detail issues of 
interest to them and of systemic importance to the multilateral trading system.  The Chairperson 
looked  forward to a fruitful exchange.  
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F THE PHILIPPINES 
(H.E.  DR CEFERINO RODOLFO ) 
Introduction  
2.1.  Let me begin my remarks by expressing our sincere appreciation, on behalf of Philippine 
Trade Minister Ramon M. Lopez, for the introduction made by the Chair person of the Trade Policy 
Review Bo dy, Ambassador Juan Carlos Gonzá lez and to all delegations, especially those present 
today, for their contributions so far in order to make this review thoroughly productive. Secondly, I 
am most grateful to the distingui shed Permanent Representative of Canada, Ambassador Stephen 
C. De Boer, for serving a s a discussant in this review. Thirdly, on behalf of the Philippine 
Government, let me extend my gratitude to the Secretariat for the tremendous work they have 
done in pre paring and delivering a full report on the Philippines. This is the Philippines ' fifth t rade 
policy review in the WTO. We highly value the Trade Policy Review  as a mechanism to better 
understand each Membe rs' trade and economic policies,  and openly discuss  and share our 
respective successes and challenges.  
2.2.  It is an honour  to share the Philippines ' progress and plans in economic and trade policies on 
behalf of a distinguished delegation from Manila. As a testament of the importance of the TPR 
Mechanism, our delegation is composed of high -level officials representing the different ministries 
that lead in the Philippines ' participation in the multilateral trading system and in implementing our 
commitments to the WTO with the support of our Philippine Mission  here in Geneva .  
2.3.  For the next 10 minutes, I will share with you that the Philippines has been steadfast in 
implementing reforms  — involving amendmen t of decades old legislations. Amidst a sluggish 
global economy, our economy has grown  and has become more resilient.  Moving forward, the 
Philippines will not only continue but will further accelerate and deepen policy reforms.  
Economy and Trade  
2.4.  Six years ago during the fourth TPR of the Philippines, we presented a picture of the country 
which was at the verge of sustained growth. I am pleased to share with you that thus far, after a 
change in Administration that not only continued reforms of the past but  — more importantly  —
have been pursuing these with greater resolve, the promise of sust ained growth has held so very 
true. We have recorded a 6.6%  six-year average GDP growth from 2012 to 2017. It is the 
Philippines ' highest six -year expansion in more than 40 years. The latest edition of the World 
Bank's Global Economic Prospects ranked us a s the world 's 10th fastest growing economy in 2017.  
2.5.  As indicated in both the Secretariat and the Government r eports, during the perio d of review, 
the G overnment undertook a wide range of economic and trade -related policy reforms. Thus, 
amidst the challeng es posed by the slug global economy, including that of a weak trading 
environment, we were able to demonstrate not only resilience but  equally important , strength, and 
kept a steady, non -inflationary growth.  
2.6.  While services still continued to be a strong d river, it has now been com plemented by the 
resurgence of m anufacturing  — which broadened our production base, diversified sources of 
growth, and immensely improved the economy 's degree of resilience.  In 2017, for example, 
manufacturing 's growth of 7.2% outpaced that of services at 6.6%.  
2.7.  By 2017, the Philippines ' total trade amounted to US$142 billion, up by 10% from 
US$129  billion in 2016,  or up by 35% if reckoned from 2012. Trade rose steadily during the period 
of review.  
2.8.  On the expend iture side, growth came  from both strong private and public spending, 
supported by the increase in employment, the steady inflow of remittances from overseas 
Filipinos,  low and stable prices and the G overnment 's thrust to deliver public services and social  
protection program mes, including public scholarship program mes, health expenditure program mes 
and assistance to victims of very destructive typhoons which hit the Philippines recurrently during 
the period of review.  WT/TPR/M/368 • The Philippines  
 
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  2.9.  All these positive numbers will be mean ingless, however, if they do not impact on the people. 
During the Philippines ' third Trade Policy Review in 2005, our poverty incidence was at about 2 6%. 
In 2012, it declined slightly to about 25%. By 2015, it had been reduced to 21.6%  - giving us 
greater resolve to continue reforms until we have lifted all Filipinos out of poverty.  
2.10.   Allow me now to highlight some of the critical reforms and program mes in the areas of trade 
and investment policy that were pursued during the review period.  
Customs and Trade  Facilitation  
2.11.   Foremost is the passage of the Customs Modernization and Tariff Act in May 2016, 
amending a law that was first introduced in 1957. The new legislation modernizes customs rules 
and procedures for faster trade, reduces opportunities for corrupt ion, improves customs service 
delivery and impr oves supply chain connectivity.  This domestic legislation complements the entry 
into force of the WTO Trade Facilitation Agreement and has allowed us to submit our notification 
on Categories A, B and C of our TFA commitments; and to initiate concrete steps for establishing 
the National Committee on Trade Facilitation which will be composed of customs and trade officials 
and private stakeholders.  
Competition Policy  
2.12.   As mentioned by the Chair earlier, after 24 yea rs of being advocated, the Philippine 
Competition Act was signed in July 2015 and created the Philippine Competition Commission 
(PCC). The PCC is an independent, quasi -judicial body that aims to promote and maintain market 
competition and economic efficiency by regulating anti -competitive behaviour.  
Liberalization of key sectors (transportation, banking, public utilities, domestic 
regula tions, among o thers) 
2.13.   We have also liberalized key sectors. For instance, t o help ensure continued competition and 
to lower business transaction costs in the maritime sector, a provision of the 1957 Tariff and 
Customs Code dealing with Cabotage Principle wa s amended in 2015 through the Foreign Ships 
Co-Loading Ac t. The law lifts long standing cabotage restrictions imposed on foreign operators by 
now allowing foreign vessels to transport and co -load foreign cargoes for domestic transhipment .   
2.14.   Also, the full e ntry of foreign banks was allowed in 2013  through Republic Act 10641 which 
amended provisions of a 1994 law on foreign bank operations.  This further opened up the banking 
sector to offshore players and has since seen the entry of banks from Japan, South Ko rea, Chinese 
Taipei and Singapore.  
Intellectual Property Rights  
2.15.   Amendments to the Intellectual Property (IP) Code also took effect in March 2013 which 
primarily created the Bureau of Copyrights within the Intellectual Property Office of the Philippines. 
The amendments also strengthened the institution 's enforcement powers with regard to visits to 
businesses engaging in IP violations and introduced a provision on a secondary liability for persons 
who benefit from copyright infringements. The Customs Moderniz ation and Tariff Act of 2016, as 
mentioned earlier, also strengthened IPR protection with the prohibition of importation or 
exportation of infringing goods.  
On Tariff Duties  
2.16.   Equally important, during the review period, we have also issued Executive Orders that 
lowered MFN duties on information t echnology -related products, on goods that lead to positive 
impact on the environment, and on capital equipment.  
2.17.   Moreover, then anticipating expiry of the Philippines ' WTO Waiver on the Special Treatment 
for Rice (in  June 2017), the President issued Executive Order No . 23 in April 2017 to extend the 
reduced MFN rates on rice and other agricultural pro ducts for another three years. These rates will 
apply until 30 June 2020 or until such time that the law amending certa in provisions of our WT/TPR/M/368 • The Philippines  
 
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  Republic Act No . 8178 or the Agricultural Tariffication Act is passed, whichever  comes first. The 
passage of this  bill amending agricultural tariffs is a priority of the Philippines.  
On Ease of Doing Business  
2.18.   These policy reforms are complemented by strong efforts to eliminate laws that place a 
heavy regulatory burden on businesses and to cut red tape through the "Project Repeal, " which 
was launched in March 2016 and the first Repeal Day held in June 2016. Through the collaboration 
of 88 government agencies, an aggregate of 4,837 policy issuances were reviewed with a view to 
repealing outdated rules and therefore reducing the cost of business.  
Next Steps  
2.19.   Now moving forward, to deepen policy reform and accel erate its pace, let me share parallel 
initiatives being pursued at the e xecutive and administrative level, at the l egislative front, and by 
initiating the review process for changing the Constitution.  
2.20.   At the executive l evel, President Rodrigo Duterte issu ed Memorandum Order No . 16 in 
November 2017 directing government agencies to take immediate steps to lift or ease existing 
restrictions on foreign participation in eight areas or activities, mainly on the following:  
1. Private recruitment, whether f or local or overseas employment;  
2. Practice of particular professions;  
3. Contracts for the construction and repair  of locally -funded public works;  
4. Public services, except activities and systems that are  recognized as public utilities;  
5. Culture, production, milling, proc essing, and trading except retailing, of rice and corn and 
acquiring by barter, purchase or otherwise, ric e and corn and its by -products;  
6. Teaching at higher education levels;  
7. Retail trade enterprises; and  
8. Domestic market enterprises.  
2.21.   At the Legislative front, our Congress has placed utmost priority in amending 
Commonwealth Act No . 146 otherwise known as the Public Service Act which is a law which was 
enacted in 1936  - or more than 80 years ago. This is very important as it can open critical areas  of 
Public Utilities (covering electricity, water, transportation, and c ommunication to up to 100% 
foreign ownership ).   
2.22.   In January of this year, the President completed the appointments to the Constitutional 
Review Commission which is now deliberating on, among o thers, lifting remaining restrictions on 
participation of foreign investors in the economy.  
Post-TPR Updates  
2.23.   Lastly, let me also take this opportunity to provide some more recent updates which took 
place after the submission of the Government and Secretari at reports.  
2.24.   Firstly, the Tax Reform for Acceleration and Inclusion or TRAIN Act was signed into law on 
9 December 2017. This is the first package of the Comprehensive Tax Reform Program me under 
the current A dministration. The Act will provide the needed resource boost to support President 
Duterte 's "Build, Build, Build " program me of infrastructure spending as well as the social 
program mes which will contribute to reducing supply bottlenecks and alleviating po verty. The 
TRAIN Act reduces personal income taxes for tho se earning below PHP 2 million.  It also provides a 
simpler system for computing donor and estate taxes.  
2.25.   Secondly, the Philippine S enate ratified the Philippines -European Free Trade Association 
Free Trade Agreement on 5 March 2018. The instrument of notification was deposited on 16 March 
at the Norwegian Embassy in Manila, paving the way for its entry into force in three months.  
2.26.   I am also pleased to report that in January of this year, the Philippin e Senate gave its 
concurrence to the ratification of the Philippines -EU Partnership and Cooperation Agreement which WT/TPR/M/368 • The Philippines  
 
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  provides for the general framework of cooperation in a comprehensive range of areas, including on 
economic issues.  
2.27.   Members may note that the  Philippines adopted a more deliberate approach towards  FTAs in 
our bilateral and regional engagements. Last year, the Philippines was the Chair of the ASEAN 
where we kept the course towards openness, reforms, growth, economic security and inclusive 
trade.  In ASEAN, we are a party to its FTA agreements with China, Korea, Australia -New Zealand, 
Japan and India. Last year we concluded the ASE AN-Hong Kong FTA negotiations. Pending its 
ratification by all parties, this will be notified to the WTO. We continue t o be engaged with our 
partners to conclude the negotiations of the Regional Comprehensive Economic Partnership. The 
Philippines has also ongoing discussions with Japan for the General Review of the Philippines -Japan 
Economic Partnership Agreement (PJEPA).  
2.28.   Our bilateral engagements and regional engagements complement the multilateral track and 
serve as building blocks to multilateral disciplines and objectives.  
2.29.   As a founding member of the Asia -Pacific Economic Cooperation forum in 1989 and as its 
Chair in 2 015, we made contributions to APEC 's work to promote trade and investment 
liberalization in the Asia -Pacific region through  an agenda on inclusive growth.  On MSMEs, we put 
forward the Boracay Action Agenda to Globalize MSMEs and through it, planted the see ds for the 
discussions in the WTO. As a M ember of the WTO Friends of MSMEs, we will continue to make 
contributions for a development -centered MSME agenda in the WTO.  
2.30.   During the review period, we have thus hosted the APEC and Chaired the ASEAN — and 
have ta ken advantage of both instances to advocate for Inclusive Globalization.  
The WTO and the Multilateral Trading System  
2.31.   On the WTO, the entry into force of the TFA sends a  positive signal to the world. However, 
we need to move forward on the unfinished busin ess of the development agenda. We attach great 
importance to our work to lower agricultural subsidies and eliminate agricultural export subsidies. 
Through continued technical engagement, the Philippines remains hopeful that solutions can be 
found for an ac cessible, simple and effective price and volume -based Special Safeguard 
Mechanism which will ensure food and livelihood security and rural development that will not 
interfere with growth in trade. We also attach equal importance on the removal of non -tariff 
barriers to ensure that real market access is achieved.  
2.32.   The Philippines is committed to contribute and to make progress wherever pos sible based 
on common efforts. The Philippines will join other M embers in engaging constructively in all areas 
of WTO, es pecially in addressing the challenges facing the WTO and in proving its rele vance today 
and in the future.  
2.33.   The Philippines will continue to play its part in supporting the multilateral trading system 
and in promoting open economies. We believe that an effe ctively functioning WTO is the best way 
to achieve Inclusive Globalization, where no one is left behind.  
2.34.   Thank you.  
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  I am pleased to be here today  as the discussant for the 5th Trade Policy r eview of the 
Philippines.  
3.2.  I would like to welcome the delegation from Manila, led by Undersecretary Rodolfo, together 
with representatives from the departments of Trade and Industry, Foreign Affairs, Finance, Labour 
and Employment, and Agriculture; the Board of Investments; the Foo d and Drug Administration; 
the National Food Authority; the Government Procurement Policy Board; and the Intellectual 
Property Office. I appreciate the delegation travelling and working during the holy week and a 
holiday period for the Philippines.  
3.3.  Let me begin by thanking the Secretariat and the Government of the Philippines for the two 
reports on which we will base our review over the next two days. A tremendous amount of work 
goes into these documents and deserves acknowledgement. I would also like to th ank those 
Members that have submitted written questions and the Philippines for their responses – the 
question and answer process is a crucial component of any TPR and ensures a robust review. I 
took note that the Philippines once again has made use of the  alternative timelines , thus further 
enhancing the transparency of this process.  
3.4.  The Philippines is an active participant  at the WTO, in our regular committee work and 
ongoing negotiations, including agriculture. The Philippines has cont ributed to WTO gov ernance as 
a Chairperson for various committees (for example, as the Chair of the Preparatory Committee on 
Trade Facilitation for several years following the conclusion of the TFA) and by recently 
coordinating ASEAN 's group positions in their capacity as C hair in 2017. Reflecting the importance 
of MSMEs to their economy, the Philippines supported the Joint Ministerial Statement Declaration 
on the Establishment of a WTO Informal Work Programme for MSMEs and has taken a leading role 
in discussions over the la st year. Further supporting the development of more inclusive trade 
policies and economic growth, the Philippines has also signed the Joint Declaration on Trade and 
Women 's Economic Empowerment.  
3.5.  In reviewing the Secretariat and Government reports, it is im mediately apparent that the 
Philippines has registered impressive growth and has implemented a number of reforms since their 
TPR in 2012, not only with respect to their trade and investment policies, but also in terms of the 
country 's broader socioeconomic  governance. In my statement, I would like to highligh t a few 
areas for Members: (1) t he Philippines strong macroeconomic performance ; (2) c hanges in their 
investment and trade policies ; and (3) c hallenges and areas for further reform.  
3.6.  Since the last review, the Philippines has recorded impressive macroeconomic results: an 
average annual GDP growth  of over 6%, combined with a reduction in its poverty rate  (from 
25.2% in 2012 to 21.6% in 2015) and in unemployment  (only 5.4% in 2016) – illustrating a 
commitment to inclusive growth. The Philippines has experienced a strong inflow of foreign direct 
investment  (FDI), which grew from US$1.9 billion in 2011 to US$7.9 billion in 2016. 
Merchandise trade  increases were driven primarily by imports, while services  grew 
substantially, with exports registering an increase of 66% over five years. According to a recent 
World Bank report, the Philippines is projected to continue to be the fastest -growing economy  in 
ASEAN.1  
3.7.  Members will be interested in how the current administration 's Zero to Ten -Point 
Socioeconomic Agenda will support these positive trends, particularly in areas affecting the 
business climate, such as the recently -approved "Tax Reform  for Accel eration and Inclusion " 
(TRAIN) and the "Build, Build, Build " campaign aimed at accelerating investment in 
infrastructure . As fiscal reform and infrastructure were both identified in the Philippines ' last TPR 
as areas for improvement, it is positive to see the Philippines ' focus on these issues and I look 
forward to seeing the long -term results of these efforts.  
3.8.  Turning to investment and trade policies, as noted earlier, the Philippines experienced rapid 
growth in foreign direct investment  during the review  period. It is notable that the Philippines 
has taken some steps to liberalize foreign direct investment. Nonetheless, as reflected in the 
                                                
1 Global Economic Prospects, January 2018: Broad -Based Upturn, but for How Long? Advance edition. 
Washington, DC: World Bank. License: Creative Commons Attribution CC BY 3.0 IGO.  WT/TPR/M/368 • The Philippines  
 
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  advanced written questions, investment openness remains a concern. Further liberalization, while 
a significant challe nge due to constitutional limitations, would help to raise productivity and allow 
the Philippines to compete more successfully. While the Philippines has improved their business 
regulations as captured by the World Bank 's Ease of Doing Business score in ab solute terms, they 
moved down the overall rankings in 2018 (from 99 to 113). There is room for improvement for the 
Philippines to streamline procedures and enhancing transparency.  
3.9.  Members will be keen to learn how the Philippines is considering addressing  these challenges, 
including how the Zero to 10 -point Socioeconomic Agenda intends to attract investment, as 
suggested, by increasing competitiveness and ease of doing business and relaxing restrictions on 
foreign ownership.2  
3.10.   During the review period, the  Philippines also brought in new legislation in a number of 
trade -related areas, including:  
1. The Food Safety Act (2013): the first comprehensive food safety law in the Philippines;  
2. The Competition Act (2015): the country 's first competition act; and  
3. The Customs Modernization  and Tariff Act (2016)  which modernizes customs rules, 
expedites customs procedures, reduces opportunities for corruption, and improves customs 
service delivery, as well as consolidates the regulatory framework f or trade contingency 
measures.  
3.11.   In addition, other notable changes include the liberalization of the banking sector, 
permitting international relays in maritime transport, and clarifications to the government 
procurement regime.  
3.12.   While the Philippines has started to address key i ssues raised during its last TPR, there 
remains room for further improvements. For example, with respect to trade in goods, the 
Philippines could benefit from an elimination of a high proportion of nuisance tariffs  (14.9% of 
tariff lines) and of tariffs un der 5% (41.9%  of tariff lines ), that create administrative burdens and 
do not provide effective protection for domestic industry. The Philippines low level of binding 
(63.7%) also creates uncertainty for exporters.  
3.13.   Members raised concerns with respect to import licensing , pre-shipment clearance , and 
the use of reference prices , which are worth exploring further, in order to improve the facilitation 
of trade into the Philippines.  
3.14.   Despite the Food Safety Act and the Philippines ' numerous notifications to th e SPS 
Committee, importers also continue to face challenges regarding the complexity of the SPS 
regime . In particular, Members raised questions with respect to imported meat products.  
3.15.   Finally, as in the previous review, agricultural reform  continues to be  a challenge – 
economically and socially. While contributing 10% of GDP, the agriculture sector accounts for 
nearly 24% of employment and, despite land reform, the size of farms has decreased. Members 
will continue to be interested in Philippines ' plans to  address inefficiencies, as well as efforts to 
reduce the relatively high level of support, improve on their notification record, and on steps taken 
towards the tariffication of rice. As noted in a recent OECD report on Agriculture Policies in the 
Philippi nes, "A reformed policy environment, consistent with measures included in the most recent 
Philippine Development Plan 2017 -2022, would help ensure the sector contributes to improved 
food security and poverty reduction. Restructuring government support away  from self -sufficiency 
targets, in particular for rice production, towards measures that strengthen productivity and 
overall farm profitability on a sustainable basis will be critical. "3 
3.16.   In conclusion, I would like to once again commend the Philippines for  their strong 
performance over the review period and encourage building on the progress made, through a 
continued sound reform agenda, good governance, and stable political environment, as these will 
be instrumental in ensuring the Philippines ' long-term g rowth prospects.  The Philippines ' continued 
                                                
2 http://www.doh.gov.ph/node/6750 . 
3 http://www.oecd.org/countries/philippines/further -agricultural -reforms -in-the-philippines -would -help-
reduce -poverty -and-improve -food-security.htm . WT/TPR/M/368 • The Philippines  
 
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  and active participation in rules -based international institutions, including the WTO, is, of course, a 
key part of this.  
3.17.   I wish the Philippines a successful review and I look forward to listening Members ' 
statem ents. 
3.18.   Thank you. 
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  4  STATEMENTS BY MEMBER S 
JAPAN  
4.1.  Needless to say, Japan and the Philippines have been  important partners for years, both 
economically and politically. Japan will make continuous efforts to maintain and further develop 
the strong ties between us. 
4.2.  According to the Secretariat report, the Philippine economy has grown at an average annual 
rate of about 6% since its last Trade Policy Review in 2012. Moreover, the Philippines has strongly 
increased infrastructure spending since 2013 with a view to i mproving the quality of infrastructure 
that has been constraining private investment and job creation. The country has also introduced 
its "Zero-To-Ten-Point Socioeconomic Agenda, " which aims to increase public infrastructure 
spending to at least 5 % of GD P. Japan expects the Philippines will continue its efforts to promote 
future economic growth.  
4.3.  Now, let me turn to the WTO issues. Japan appreciates the Philippines ' active participation in 
the WTO negotiations. We note that the Philippines provided over 300 notifications to the WTO 
during the review period, and has been actively involved in the WTO dispute settlement cases, 
even as a third party. Moreover, the Philip pines is one of the members of the ITA Expansion 
Agreement and accepted the WTO Trade Facilitation agreement in 2016. The country also 
submitted its category A notifications in 2014, followed by category B and C notifications in 
January of this year.  
4.4.  Japan  positively evaluates the Philippines for efforts such as these to contribute to higher 
trade liberalization and strengthen the multilateral trading system.  
4.5.  With regard to the RTA, the Philippines has joined the ASEAN Trade in Goods Agreement, the 
ASEAN Fr amework Agreement on Service and the ASEAN Comprehensive Investment Agreement 
with a view to contributing to the ASEAN Community. In addition, the Philippines, as a member of 
ASEAN, has joined the FTAs with Australia and NZ, China, India, Japan, the Republ ic of Korea, and 
Hong Kong, China and is also taking part in the negotiations on the Regional Comprehensive 
Economic Partnership (RCEP). Japan commends the Philippines ' efforts to liberalize its international 
trade and hopes that these RTAs will complement  and strengthen the multilateral trading system.  
4.6.  In spite of these positive elements, we believe that there is still room for improvement in the 
Philippines ' trade policies.  
4.7.  Our first concern is about the Common Carrier 's Tax that has been imposed on inter national 
carriers.  
4.8.  The Philippine Government imposes a 3% Common Carrier 's Tax (CCT) on the gross receipts 
generated from freight revenues for the transport of cargoes to another country by an 
international carrier. However, although the local carriers ' freight revenue generated from 
outbound services is subject to VAT instead of CCT, VAT is actu ally stipulated as zero -rated. 
Hence, the CCT appears to constitute a discriminatory financial burden for foreign carriers when 
compared with the taxation regime in  place for local carriers. Therefore, Japan encourages the 
Philippines to reconsider this taxation regime.  
4.9.  With regard to retail liberalization, the transfer capital requirement for retail businesses with 
one hundred percent foreign capital must be at leas t 2.5 million dollars and they are also required 
to have 830,000 dollars or more in capital per store. Although the equivalent requirement for other 
businesses is a minimum of 200,000 dollars in capital per store, the retail industry is severely 
regulated.  Therefore , Japan requests that the Philippines reduce the requirements for retail 
businesses to make them equivalent to those imposed on other businesses.  
4.10.   In addition to that, the Philippines has also introduced a requirement that parent companies 
must ha ve net assets of at least 200 million dollars as well as a requirement that companies that 
have more than 80% foreign capital ratio must publicly list 30% of shares within eight years after 
commencement of business. Japan requests that the Philippines remo ve these requirements to 
promote further liberalization of the retail trade business.  WT/TPR/M/368 • The Philippines  
 
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  4.11.   In conclusion, Japan believes the Philippines can further enhance its significant role in the 
world economy though improvement of its trade and investment environment, in cluding in the 
areas that we have indicated today.  
4.12.   Japan looks forward to continued close cooperation between our two countries and wishes 
the Philippines a successful and productive TPR.  
CANADA  
4.13.   We commend the Philippines for its strongest economic perform ance since the 1980 's. The 
Philippines ' average growth rate of 6.6% has been the highest in Southeast Asia over the last five 
years. Moreover, as the Secretariat report points out, it has proven to be more resilient to external 
shocks than other emerging m arket economies. The Philippines seems poised to successfully 
implement its latest government reform programs and to sustain growth moving forward.  
4.14.   With growth, how ever, come certain challenges. Infrastructure gaps continue to exert 
significant downward pr essure on the Philippines; otherwise we have seen strong growth in a 
number of ways. Traffic congestion in major urban centers has daily productivity co sts on the 
Philippine economy. The current distribution of key infrastructure assets is limiting the abi lity of 
local and national governments to promote a more equal distribution of growth across the country, 
with repercussions on the level of employment and social development. Inconsistencies in tourism 
infrastructure persist, though improvements in this a rea and other measures have helped to 
sustain growth in this sector. In terms of attracting FDI, the infrastructure gap; particularly in the 
transportation sector, is beginning to impair the Philippines ability to attract investment in certain 
sectors.  
4.15.   However, work undertaken in this area combined with the strong commitment by the 
government to address the infrastructure gap is heartening. We encourage the Philippines to 
continue its efforts to develop and deliver robust and strategic investments in infra structure to the 
benefit of its entire economy.  
4.16.    Canada also notes the Philippines strong commitment to food safety on behalf of 
consumers. During the period under review we note that of the over 300 notifications the 
Philippines provided to the WTO more t han 200 were SPS notifications. While Canada is pleased to 
see the Philippines leveraging the processes of the WTO, we encourage the Philippines, when 
implementing new procedures, to submit notifications in a timely manner to ensure transparency 
and predic tability for importers, co nsumers and exporters alike. We thank the Philippines for its 
ongoing dedication to ensuring the implementation of science -based policies in accordance with 
international standards.  
4.17.   Returning to the business environment, we note t he continued strong progress made by the 
Philippines. The Philippines ranks 99th (out of 199 countries) in the World Bank 's ease of doing 
business indicator for 2017 (up from 134th place in 2012). It has made, amongst others, anti -
corruption reforms in its  customs services by limiting person -to-person contacts and imposing 
heavy penalties on corrupt officials. The country 's ranking in Transparency International 's 
Corruption Perception Index has improved from 135th in 2012 to 101st place in 2016 (out of 
176 countries). We commend these measures. However , we note that the number and complexity 
of permits and licenses required in certain sectors of the economy can impair the efforts of 
entrepreneurs and new entrants to the economy. We also note the continued co ncern of some 
companies doing business in the Philippines about informal payments and we therefore welcome 
the Philippines ' sustained efforts and increased determination.  
4.18.   Canada also recognizes Philippines efforts to champion WTO initiatives aimed at helpi ng 
micro, small and medium -sized enterprises (MSMEs) integrate into international trade and we look 
forward to collaborating with Philippines on delivering progressive and inclusive results.  
4.19.   Finally, Canada has taken note of the Philippines recent notifica tion of Category B and C 
commitments, including definitive dates, and congratulates the Philippines for implementing the 
vast majority of the TFA upon entry into force. We encourage the Philippines to provide WTO 
Members with its outstanding transparency n otifications as soon as possible.  WT/TPR/M/368 • The Philippines  
 
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  4.20.   We have submitted written questions that reflect some of the concerns raised today, and 
would like to thank the Philippines ' for submitting responses. We will examine them more closely 
and will submit follow up questions. We look forward to a constructive exchange of views on all 
aspects of the Philippines ' trade policy today and Wednesday. As a key mechanism for the WTO to 
enhance transparency among M embers ' trade policy, we would like to thank the Philippines for 
their productive engagement in this Trade Policy Review. We positively note the Philippines use of 
the alternative timelines in its Trade Policy Review. This contribu tes to enhancing transparency and 
the overall usefulness of the trade policy review process and we encourage all Members to adopt 
this practice. We look forward to further engaging with the Philippines as part of our FTA process 
with ASEAN.  
PERU  
4.21.   Peru comme nds the Philippines for the significant progress it has made in its economic 
development during the review period. This includes rapid steady growth, macroeconomic stability, 
diversification of production, heavy public investment in infrastructure, the est ablishment of a 
competition authority, and the adoption of a national renewable energy programme. We hope that 
this economic success leads to greater growth to the benefit of all people of the Philippines.  
4.22.   Bilateral trade relations are strong and their fut ure looks promising. Total trade between our 
two countries passed the US$200  million mark in 2016 for the first time, and has been in line with 
trend growth for more than five years. We are confident that the forthcoming entry into force of 
the Comprehensi ve and Progressive Agreement for the Trans -Pacific Partnership (CP -TPP), our 
joint participation in APEC and the cooperation between the Pacific Alliance and ASEAN will help to 
boost our bilateral trade.  
4.23.   The Peruvian delegation notes from the reports the u se of certain restrictions on foreign 
investment, the absence of bindings for a high proportion of tariff lines and the recent expiry of 
the Philippines' waiver in relation to quantitative restrictions on some products that should trigger 
prompt tarifficat ion of import duties for those products. Additionally, we have submitted questions 
about the public procurement system, especially regarding the regime applied in respect of 
State  Trading Enterprises. (We are grateful for the replies received/We look forwa rd to reviewing 
the responses), which we shall study with care.  
4.24.   Before concluding, the Peruvian delegation would like once again to wish the Philippines 
every success in its continuing economic development. At the same time, we  wish the Philippines a 
succe ssful fifth Trade Policy R eview.  
CHILE  
4.25.   From the reports presented on this occasion the delegation of Chile notes that since its last 
Trade Policy Review in 2012, the Philippine economy has grown at an average annual rate of about 
6%, leading to a reduction  in the poverty rate of close to 5% over recent years. Additionally, we 
note the Philippine Development Plan 2017 -2022, which focuses on making the economy more 
competitive through sound regulatory practices and competition policy, and open services 
market s. 
4.26.   It is also interesting to note that during the review period, the total government debt to 
GDP ratio decreased from 41% in 2012 to 35% in 2016 as the result of the Government's pursuit 
of a conservative fiscal policy aimed at strengthening resilience and building a fiscal buffer.  
4.27.   Another important aspect to note is that in order to achieve a higher growth path, the 
Philippine Government has strongly increased infrastructure spending, from 2.7% of GDP in 2013 
to 5% in 2016, particularly on inter -island connectivity, road links, and addressing congestion in 
Metro Manila and other urban areas. This is hugely interesting and important since the country's 
efforts to attract greater volumes of foreign direct investment were hampered specifically by 
factors su ch as infrastructure problems.  
4.28.   In addition, we take a favourable view of the momentum behind the Customs Modernization 
and Tariff Act of 2016: as well as consolidating the country's regulatory framework for trade WT/TPR/M/368 • The Philippines  
 
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  contingency measures, it aims to modernize customs rules, expedite customs procedures, reduce 
opportunities for corruption, and improve customs service delivery.  
4.29.   Chile further notes that the Philippines ratified the WTO Agreement on Trade Facilitation on 
27 October  2016 and has also notified 90% of  its Category A commitments.  
4.30.   The first links between Chile and the Philippines were established in July  1946 and are 
Chile's longest -standing diplomatic relations with an ASEAN country. Therefore for more than 
70 years there have been bilateral exchanges o f all types between us and we hope that they will 
thrive even more in the future.  
4.31.   Chile's trading relationship with the Philippines is largely defined by the role of ASEAN in the 
Asia-Pacific region. The ten ASEAN member countries account for a fifth of th e world's economy 
and now represent the third most important market for Chile. Chile recognizes the strategic role 
played by ASEAN in global trade and it is therefore relevant to note that Chile reached a milestone 
in its relations with Asia generally, and  with the Philippines in particular, when it joined the 
Treaty  of Amity and Cooperation of the Association of Southeast Asian Nations in 2016.  
4.32.   Accession to the ASEAN Treaty of Amity and Cooperation is the culmination of decades of 
rapprochement with each o ne of ASEAN's member countries and with the Association as a whole.  
4.33.   Chile and the Philippines share similar outlooks and both participate in other important 
regional agreements such as APEC and the Forum for East  Asia-Latin America Cooperation 
(FEALAC).  
4.34.   We also note that at the WTO Chile and the Philippines have common views on agricultural 
liberalization through our membership of the Cairns Group and the Agricultural G -20, and we both 
belong to the Informal Group of Friends of  MSMEs.  
4.35.   There is therefore amp le room in which to develop bilateral cooperation initiatives in areas 
such as public policy, natural disasters, mining, agricultural crops and the environment.  
4.36.   Total trade between Chile and the Philippines since 2012 has been erratic and on a 
downward tre nd. This and other factors have led to our expressing an interest to the Philippine 
authorities in our two countries entering into an FTA in the near future. Accordingly, we take this 
opportunity to reaffirm our interest in agreeing terms of reference with  the Government of the 
Philippines and opening negotiations in the near future with a view to the signature of an FTA.  
4.37.   Additionally, with a view to improving current trade levels, it is in Chile's interest to resolve 
the regulatory matters preventing the e xport of Chilean livestock products to the Philippines.  
4.38.   Accordingly we cannot but express concern at the sanitary and phytosanitary requirements 
for food imports which include assessments of slaughterhouses in countries of origin by Philippine 
inspectors t o ensure that they comply with the Philippines' health regulations. We therefore should 
like to restate our interest and willingness to obtain the recognition and the relevant accreditation 
required by the Bureau of Animal Industry.  
4.39.   In conclusion, the dele gation of Chile would highlight the wording of the report by the 
Secretariat that the Philippines continues to be a strong supporter of a rules -based multilateral 
trading system and, during difficult times for the global economy, it advocates further trade  
liberalization. In our opinion, these are fundamental principles at this time, and we therefore 
highlight them.  
4.40.   Chile submitted 26  questions as part of this fifth review, and we appreciate the replies. We 
wish the Philippines a successful Trade Policy Rev iew. 
EL SALVADOR  
4.41.   It is an honour for El  Salvador to participate in this exercise in transparency concerning a 
Member with which we share important ties of friendship and common interests within the 
multilateral framework.  WT/TPR/M/368 • The Philippines  
 
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  4.42.   In relation to this review, we note that the Philippine economy has grown at an annual 
average rate of 6% since the previous review in 2012. The main drivers of growth were 
consumption and investment. We also note the work the Philippines has done to reduce the 
poverty rate, which fell from 25.2% in 2012 to 21.6% in 2015.  
4.43.   As in El  Salvador, services constitute the Philippines' most important sector in terms of 
contribution to GDP, and are also the fastest growing export sector. The share of financial services 
remained at some 10% of GDP during the review period; tourism, which is key to the country's 
social and economic growth, represented 8.6% of GDP and 12.8% of employment.  
4.44.   It is important to mention the progress made by the Philippines on competition matters 
during the review period: i n 2015 the country adopted its first Competition Act and in 2016 
established a competition authority. Additionally, new legislation on public procurement entered 
into force in 2016, although the nationality requirement for bidders continues to restrict 
foreign-owned entities from participating.  
4.45.   In 2014 bilateral trade between our countries stood at US$14  million, the highest figure 
during the review period. As stated in the report by the Secretariat, machinery is the Philippines' 
main merchandise export cat egory. Additionally, exports of electronic and electrical goods have 
recorded significant growth since 2012, accounting for 25.6% of total exports. It is therefore no 
surprise that the Philippines' chief export product to El  Salvador falls within this cate gory. 
4.46.   On the multilateral front the delegation of El  Salvador notes the Philippines' active 
participation in the regular work and negotiations carried on at the WTO, including in the field of 
agriculture. As developing countries, El  Salvador and the Philip pines share joint interests in various 
areas of multilateral work, including through their active participation in the MSME initiative 
launched at the Buenos  Aires Ministerial Conference by a significant Group of Members. Both 
delegations are pushing for g reater integration of MSMEs into world trade with special emphasis on 
technical assistance and development.  
4.47.   In relation to the Philippines' commitments to remove its quantitative restrictions on rice, 
we thank the delegation of the Philippines for the deta iled information it has supplied on the efforts 
and progress made to comply with tariffication of these measures, and we urge the country to 
implement the commitments it assumed in that regard under the multilateral framework as soon 
as possible.  
4.48.   We thank the Philippines for its replies to the questions submitted by the delegation of 
El Salvador, which we shall forward to our capital for analysis.  
4.49.   All that remains for me to do is to wish the Philippines every success in this trade policy 
exercise.  
ARGENTINA  
4.50.   Argentina is pleased to note that since its last Trade Policy Review in 2012, the Philippine 
economy has grown at an average annual rate of about 6%. Equally noteworthy are the reduction 
in the poverty rate and the significant increase in exports of elect ronic and electrical products, and 
the rapid growth in exports of services and remittances.  
4.51.   In respect of the country's strong economic performance, we are confident that the 
Philippine Development Plan 2017 -2022 will achieve its objective of improving the  competitiveness 
of the economy through open services markets, good regulatory practices, and sound competition 
policies and institutions.  
4.52.   We would like to point out that during the period under review, the Philippines recorded a 
strong inflow of FDI. In that regard, and without prejudice to the Philippine Government 
maintaining restrictions on foreign investment in certain sectors such as agriculture, fisheries, 
telecommunications services and public services, we commend the flexibility introduced in the area 
of professional and banking services.  WT/TPR/M/368 • The Philippines  
 
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  4.53.   Argentina welcomes the adoption of the Customs Modernization and Tariff Act of 2016 
which, we are confident, will help to modernize customs rules, expedite customs procedures, 
reduce opportunities for corruption, and improve customs service delivery.  
4.54.   We are also pleased that the Philippines is among the large percentage of Members who 
have already ratified the Agreement on Trade Facilitation (TFA). We further note that the 
Philippines has notified the inclusion of practically all the provisions of the TFA as Category A 
commitments.  
4.55.   Argentina is most interested to note the Philippines' active commitment to the multilateral 
trading system; the country grants at least MFN treatment to all WTO Members. The Philippines 
has signed preferential trade agreements with 15  partners, has signed an agreement with the 
members of the European Free Trade Association (EFTA), and like the countries of the 
Southern  Common Market (MERCOSUR) of which Argentina is part, is currently negot iating a 
free trade agreement with the European Union.  
4.56.   Argentina is closely monitoring the tariff rate quota administration system. Moreover, as 
part of this trade policy review we have submitted questions concerning the foreign investment 
regime, the prom otion of MSMEs, and the food import accreditation regime. We are grateful for the 
responses provided, which will be duly considered by the Argentine authorities.  
4.57.   Lastly, we not only reiterate our appreciation of this renewed opportunity to exchange 
informa tion and comments on the Philippines' trade policies and practices, but would also draw 
attention, once again, to the importance of this exercise in transparency from every point of view. 
We wish the Philippine authorities every success in this review.  
AUSTRALIA  
4.58.   Australia and the Philippines have enjoyed a strong and broad -based bilateral relationship 
over 70 years, based on our robust people -to-people links and close cooperation on a wide range 
of trade and economic interests.  
4.59.   Australia welcomes the Philip pines ' impressive economic growth, one of the fastest in Asia, 
only surpassed by China and Viet Nam. We note the positive influence of sustained structural 
reform on growth, and encourage the Philippines to continue with its reform agenda. We welcome 
the P hilippines ' progress on competition law and policy, including the establishment of the 
Philippine Competition Commission and encourage the Philippines to continue strengthening its 
competition architecture.  
4.60.   Australia welcomes improvements in the Philippine s' access for certain foreign professional 
service providers and efforts to reduce the foreign investment negative list – we encourage the 
Philippines to continue removing remaining restrictions. Australia is concerned by continued 
restrictions preventing foreign suppliers from accessing the Philippines ' government procurement 
market, and we look forward to improvements in this area.  
4.61.   Australia appreciates the Philippine Government 's efforts to amend its legislation to remove 
quantitative restrictions on its  imports of rice. Australia encourages the Philippines to reduce its 
high tariffs, particularly on agricultural products such as rice, maze and sugar. This would allow 
the Philippines to greater integrate into regional and global supply chains.  
4.62.   Australia c ongratulates the Philippines on its role as 2017 Chair of ASEAN and its work to 
promote regional economic integration. Australia is pleased to work with the Philippines towards 
this goal, including through the Regional Comprehensive Economic Partnership (R CEP) negotiations 
and through our existing ASEAN -Australia -New Zealand Free Trade Agreement.  
4.63.   Australia and the Philippines are also working within the WTO to advance trade 
liberalization. Australia congratulates the Philippines on the ratification of the W TO Trade 
Facilitation Agreement on 27 October 2016. As trading nations, both Australia and Philippines 
benefit from simplification and harmonization of international trade procedures to assist the 
movement of goods.  WT/TPR/M/368 • The Philippines  
 
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  4.64.   We are looking forward to working with t he Philippines as part of the WTO Informal Working 
Group on Micro, Small and Medium -Sized Enterprises (MSMEs) seeking to promote the 
participation of MSMEs in international trade, including through establishing a formal work 
programme for MSMEs at MC12.  
4.65.   Noting the importance of transparency and notification obligations to the functioning of the 
WTO system, Australia encourages the Philippines to complete its outstanding WTO notifications, 
including domestic support notifications and its 2016 export subsidy notification.  
4.66.   For this review, Australia has submitted a number of written questions focusing particularly 
on the Philippines ' policies on foreign investment, agriculture and intellectual property. We look 
forward to the Philippines ' response to these questions, and we wish the Philippines a successful 
Trade Policy Review.  
DOMINICAN  REPUBLIC  
4.67.   The delegation of the Dominican  Republic would first like to congratulate the Government of 
the Philippines on the impressive sustained average g rowth in its economy of 6% annually since 
2012. Also reassuring is the observation in the report by the Secretariat that the poverty rate has 
fallen from 25.2% in 2012 to 21.6% in 2015 since it shows that growth and wealth have 
permeated down to the poores t layers of society. We are interested to note that the key to this 
economic growth was infrastructure investment, which has increased strongly from 2.7% of GDP in 
2013 to 5% in 2016, particularly in respect of inter -island connectivity, road links, and ad dressing 
congestion in Metro Manila and other urban areas; we are of the view that these are wise 
measures.  
4.68.   The delegation of the Dominican  Republic notes that services constitute the most important 
sector of the economy and are also the fastest growing ex port sector, representing about 51% of 
GDP. We congratulate the Philippines on the legislative changes that have resulted in greater 
liberalization in the banking sector – up to 100% foreign ownership of banks has been allowed 
since June  2014; and in the i nsurance sector where national treatment has been applied to 
foreign -owned insurance companies since mid -2013, when the Insurance Code was amended.  
4.69.   It is also important to note that over the review period, the Philippines recorded an 
impressive inflow of f oreign direct investment (FDI) which reached US$7.9  billion in 2016, up from 
US$1.9  billion in 2011, an increase of more than 300%. Most of the inflow was invested in 
manufacturing, as reflected in a significant rise in exports of electronic and electrical  goods, 
accounting for 25.6% of total exports in 2016 compared to 9.6% in 2011.  
4.70.   The delegation of the Dominican  Republic also congratulates the Philippines on its progress 
in trade facilitation with the adoption of a new Customs Modernization and Tariff Ac t of 2016 that 
aims to modernize customs rules, expedite customs procedures, reduce opportunities for 
corruption, and improve customs service delivery.  
4.71.   We also regard it as very positive that the Philippines passed its first Competition Act in 
2015 and est ablished a competition authority in 2016. We hope that the country will continue to 
bolster this area.  
4.72.   Lastly the delegation of the Dominican  Republic would like to thank the Philippines for the 
responses to the questions we submitted and wishes the countr y every success.  
EUROPEAN  UNION  
4.73.   The EU would like to start by commending the Philippines for its significant progress during 
the period under review as showed by its continued strong GDP growth since 2012, with an 
average of 6.7% - including in 2017. This growth has had an impact on poverty (down from 25.2% 
to 21.6%) and unemployment (down to 5.7%) and it has been partly thanks to the economic 
reforms the country has undertaken during the past years and which are still ongoing, including its 
10 point socio -economic plan.  WT/TPR/M/368 • The Philippines  
 
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  4.74.   Among the reforms that have taken place during the period under review, the EU 
particularly appreciates the Philippine Competition Act which is fully impl emented since 
August  2017; the Cabotage Law amendment adopted in July 2015; the Republ ic Act 10641 
allowing full entry of foreign banks in the Philippines adopted in July 2014 and, last but not least, 
the Customs Modernisation and Tariff Act adopted in May 2016.  
4.75.   The relationship between the EU and the Philippines is a longstanding one, which has 
broadened in recent years, both bilaterally and regionally, through the EU cooperation with ASEAN. 
Just to mention some figures: bilateral trade in goods has incre ased strongly, reaching 
€14.1  billion in 2017, thanks also to trade preferences off ered by the EU to the Philippines under 
the GSP+ programme. The EU FDI stock in the Philippines also increased in these last years and 
reached €10.5 billion in 2016, with the EU being the largest investor in the country in relevant 
sectors, notably energy,  technology, manufacturing and services.  
4.76.   A major development in our bilateral relationship was reached on 1 March 2018 with the 
entry into force of the Framework Agreement on Partnership and Cooperation between the EU and 
the Philippines. It will provide t he legal framework for further engagement and cooperation 
between the EU and the Philippines on a broad range of areas, going beyond trade matters and 
including notably development cooperation, political dialogue, energy, transport, labour and 
human rights , science and technology. Currently, the Philippines benefits from enhanced market 
access to the EU through the GSP+ programme and, in this context, we maintain a good dialogue 
with the Philippines on its commitment to implement international conventions o n labour rights, 
human rights, environment and good governance.  
4.77.   While the Philippine 's positive economic performance has been highlighted important 
concerns remain. Economic reforms must accelerate and several measures remain to be 
implemented to achieve i ts 2022 upper middle income level goal.  
4.78.   As a general remark, while the EU welcomes the reforms announced by the President of the 
Philippines in his Memorandum Order 16 of 21 November 2017 – highlighting upcoming 
liberaliz ation in, among others, practice o f professions, public works, public services, retail, 
domestic market, and teaching – the EU would welcome more concrete information on how the 
Government intends to go about these reforms and how it will ensure that they are in line with 
international rul es and best practices.  
4.79.   Turning now to some key areas of concern, which have been also raised during previous 
reviews, I would like to draw your attention to the following issues:  
4.80.   First, the EU would like to encourage the Philippines to speed up the ongoin g revision 
process to improve non -discriminatory access for foreign bidders and to lift restrictions on 
foreigners'  participation in the public procurement of goods. For this, the EU would also suggest an 
easing of licensing requirements for foreign operat ors, in particular amending the Philippine 
Contractors Accreditation Board (PCAB) requirements as well as local content requirements.  
4.81.   The EU would also encourage the Philippines to join the GPA as an observer to attract more 
FDIs.  
4.82.   Second, restrictions to  foreign direct investments. In the EU 's view, trade and investment 
remain below potential and could benefit of a liberaliz ation of restrictions currently applied to 
foreign investments. Domestic market -oriented firms are generally limited to 40% foreign e quity, 
and specific foreign equity limits apply in several sectors, notably telecommunications, electricity, 
water, logistic services, media and agriculture. The EU encourages Government and Congress to 
continue the efforts for the final approval of the Am endment of the Public Services Act, approved 
by the House last September, which would allow more foreign ownership in sectors like 
transportation and telecommunication. The EU also encourage continuing the revision of the Retail 
Trade Act, doing away with the relatively high capital requirements as well as a further revision of 
the Investment Negative List.  
4.83.   Third, the EU would like to raise some concerns on standards, particularly on sanitary and 
phytosanitary standards (SPS). While the EU welcomes a number  of positive steps that have been 
taken in recent years in the SPS area, further efforts are necessary. The EU encourages the WT/TPR/M/368 • The Philippines  
 
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  Philippines to adopt international standards as Philippines National Standards (PNS) to further 
increase transparency.  
4.84.   In closing,  the EU notes the Philippines has shown commitment to the WTO as an important 
element of its economic growth strategy. We note that the Philippines is fulfilling almost all its 
notification 's obligations, with a few exceptions limited to the agriculture se ctor and the still 
missing 2017 annual notification of its import licensing procedures. We also praise the Philippines 
for having submitted its notifications of Categories A, B and C under the Trade Facilitation 
Agreement. In this regard, we commend the Ph ilippines for having a rate of Category A 
commitments over 93% and we hope the National Single Window – also as part of the ASEAN 
regional integration – will be fully operational in 2018 as announced.  
4.85.   On behalf of the EU, I wish The Philippines delegation the utmost success during its Trade 
Policy Review.   
NORWAY  
4.86.   Norway is pleased to note the Philippines ' economic growth over a number of years and that 
the poverty rate appears to have decreased. We enc ourage the Government to continue its work 
to promote poverty reduction and a more equal income distribution. It is important that 
mechanisms to ensure tax collection are strengthened.  
4.87.   Norway values the Philippines ' contributions to the work of the WTO. W e note with 
appreciation point 2.3 in the Government 's report which states that the Philippines is committed to 
promoting a more open, well -functioning and competitive environment. Norway thanks the 
Philippines for its engagement to draw the attention of W TO Members to the challenges micro, 
small and medium sized economies (MSEMEs) face in international trade.  
4.88.   Let me now touch on the successful negotiations between the Philippines and the EFTA 
States leading to the signing of a free trade agreement in April  2016. Norway looks forward to the 
entry into force of the agreement. Bilateral trade stood at US$828 million in 2017. Norway 
believes the Philippines -EFTA agreement will contribute to a considerable increase in these figures 
when the agreement is implemen ted. 
4.89.   Maritime cooperation is a key element in our bilateral relations.  Norwegian shipping 
companies employ about 25 000 Filipino seafarers aboard their ships or in shipyards , accounting 
for one third of the total number of seafarers on Norwegian controlled  vessels. The Norwegian 
Training Center in Manila provides relevant training for Filipino seafarers serving on Norwegian 
ships. The Norwegian Maritime Authority cooperates with the Philippine Maritime Industry 
Authority to ensure that maritime education is  in compliance with the International Convention on 
Standards of Training, Certification and Watchkeeping for Seafarers. A number of Norwegian 
shipping companies have offices in the Philippines.  
4.90.   I would also like to emphasize that Norway encourages the Gov ernment to liberalize the 
Cargo Reservation Law, which requires that cargoes owned by the Government or controlled by 
state owned corporations shall be shipped on board Philippine flag vessels. A liberalization of these 
sectors will contribute to strengthe ning the competitiveness of the Filipino economy.  
4.91.   In the Philippines, telecoms services are regarded as a public utility. The Constitution as well 
as the Public Service Act limit foreign equity in telecoms companies to 40%. Foreigners may not 
become execut ives or managers of telecoms firms, and the number of foreign directors must be 
proportionate to the firm 's aggregate share of foreign capital. Norway encourages the Philippines 
to review these statues and to undertake reforms.  
4.92.   Norway views with interest t he amendments made to the Fisheries Code in 2015, and 
commend efforts by the Government of the Philippines to combat illegal, unreported and 
unregulated fishing. We hope further measures will be introduced, including legislative changes, to 
eliminate illeg al, unreported and unregulated fishing. We note the importance of the Philippines ' 
active participation in the fisheries subsidies negotiations in the WTO.  WT/TPR/M/368 • The Philippines  
 
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  4.93.   The Philippines is a net importer of energy with diminishing natural gas reserves. Norway 
encourages  the Government to undertake a rapid expansion of renewable and clean energy, mixed 
with continued use of gas by constructing LNG -to-power facilities. We recommend to close down 
coal fired power works.  
4.94.   Norway wishes the Philippines a successful Trade Polic y Review.  
CHINA  
4.95.   We are pleased to see the robust economic growth at rate of over 6% each year achieved 
by the Philippines during the period under review. Such growth was driven mainly by consumption 
and infrastructure investment. More importantly, the qual ity of economic growth is improving and 
creating more employment. With the Philippine Development Plan 2017 -2022 being implemented, 
we have reasons to believe that the Philippines will continue the rapid growth and achieve the 
sustainable development.  
4.96.   We n ote that in terms of trade, the manufactured goods took up 84% of merchandise 
exports in 2016, and electronic goods was the biggest export. Services is the most important 
contributor to GDP and is also the fastest growing export sector. For investment, the  Philippines 
recorded an increasing inflow and outflow of FDI during the period under review.  
4.97.   Multilaterally, the Philippines is an active WTO Member, having accepted the Trade 
Facilitation Agreement (TFA), the Protocol amending the TRIPS Agreement, and be ing a signatory 
to the Information Technology Agreement (ITA) and its expansion. The Philippines has been 
pushing forward the DDA mandates, with a view to achieving the development objectives and 
enhancing the multilateral trading system. Furthermore, the Philippines is also playing an 
important role in the regional economic cooperation such as ASEAN and APEC, and actively 
engaging with all its dialogue partners.  
4.98.   In order to better understand the latest development in trade policy, we have raised some 
quest ions concerning issues like: multiple licences or permits for certain imported products; rising 
share of international tariff peaks in total tariffs; export licence for specific minerals; restrictions 
on foreign investment in certain sectors such as mining , energy, construction and public utilities, 
etc. We appreciate the replies by the Philippines side which we would study carefully.  
4.99.   On the bilateral front, China and the Philippines are good and friendly neighbours. The 
frequent high -level exchanges betwee n the two countries have provided strong political guidance 
and dynamics to the bilateral relations. Currently, the two sides are implementing the consensus 
reached by leaders of both countries, while aligning the Belt and Road Initiative with the 
Philippi nes' development strategy and deepening cooperation in infrastructure, agriculture, 
investment and other areas. These efforts have served to bring more benefits to both peoples, 
contribute to the region 's development and prosperity, strengthening cooperati on with ASEAN in 
particular.  
4.100.   China has become the largest trading partner of the Philippines. In 2017, the bilateral 
trade reached US$50 billion, increased by 8.5%. China has imported one million tonnes of tropical 
fruits from the Philippines and there have been nearly one million Chinese tourists visiting the 
Philippines. There are over 300 flights flying between China and the Philippines each week. By the 
end of 2017, the Philippines has invested US$29.7 million in China, while China has invested 
US$77 0 million in the Philippines.  
4.101.   In this regard, we are pleased to learn that the Philippines has confirmed to participate in 
the first China International Import Expo (CIIE) in November, which serves to support trade 
liberalization and open China 's market to  the world. We believe that this will promote the 
Philippines ' enterprises export to China and further expand bilateral economic and trade ties. We 
readily welcome more Members to join us in Shanghai.  
4.102.   The WTO is facing challenges and opportunities in this moment in time, China, as strong 
supporter of the WTO, would work with the Philippines and other Members to preserve the basic 
principles of and strengthen the multilateral trading system.  WT/TPR/M/368 • The Philippines  
 
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  4.103.   Finally, I would wish this TPR a full success.  
UNITED  STATES  
4.104.   The Ph ilippines and the United States are strong allies and partners. We share a long 
history, a common language, and extensive linkages between our peoples, including more than 
four million Filipinos and Filipino -Americans living and studying in the United Stat es. 
4.105.   Trade has connected the Philippines and the United States for over a century and continues 
to underscore the close ties between our two countries. Two -way trade has grown over the 
decades to an estimated US$27.0 billion in 2016, comprising just over US $18 billion in goods trade 
and nearly US$9 billion in services.  
4.106.   The Philippines is a leading beneficiary of our Generalized System of Preferences 
programme, with roughly US$1.5 billion of Philippine goods exports to the United States entering 
the U.S. mark et duty free every year. Our two -way investment stock is roughly US$7 billion.  
4.107.   The U.S. -Philippines Trade and Investment Framework Agreement turns thirty next year, 
and has served as an important vehicle for the United States to engage with the Philippines  and 
make measurable progress on a number of issues. We continue to discuss ways to expand trade 
and investment between our two countries.  
4.108.   The Philippines has been among the fastest growing countries in Asia over the past five 
years; more openness to forei gn trade and investment will make a vital contribution to the 
Philippines ' ability to continue such impressive economic growth.  
4.109.   Today 's Trade Policy Review plays an important role in encouraging the dialogue between 
the Philippines and other WTO Members on  a number of key issues whose elimination would lead 
to trade expansion and greater prosperity for both the Philippines and its trading partners.  
4.110.   In the agriculture sector, the United States and the Philippines have a booming trade 
relationship. Last year,  Philippine exports of agricultural products to the United States were 
US$1.2 billion, covering a wide range of products including coconut oil, raw sugar, processed 
fruits, and tuna. Meanwhile, U.S. exports of agricultural products were US$2.6 billion.  
4.111.   Our two countries have a shared interest in continuing cooperation to ensure a strong 
science -based foundation for our agricultural trade, for the benefit of consumers and exporters. 
Unfortunately, some high profile issues remain. On meat handling, we continu e to be very 
concerned about regulations that impose very rigorous requirements on certain kinds of meat that 
are primarily imported, but less stringent requirements on freshly slaughtered domestic meat. 
Such regulations are inconsistent with well -establis hed science on food safety.  
4.112.   We also remain concerned about the reported use of reference prices to assess customs 
duties on agricultural products, particularly meat and poultry. We are working to address these 
and other agricultural and SPS trade issues, a nd hope to hear an assurance from the Philippines at 
today 's meeting that it will discontinue this practice.  
4.113.   We welcome steps the Philippines is taking to liberalize its foreign investment regime, 
motivated by an effort to attract foreign investment to dev elop its infrastructure and support 
economic growth. However, significant restrictions on foreign ownership remain based on the 
Philippine Constitution and specific laws. We understand the Philippine Congress is taking steps to 
lift some of the restriction s, particularly in the area of telecommunications and transportation, and 
look forward to hearing from the Philippines about the progress being made.  
4.114.   Despite improvements in the Philippines ' system of intellectual property rights (IPR) 
protection in recent  years, we continue to have concerns, including the increase of online piracy, 
the availability of counterfeit drugs and other products, and weak provisions in patent law that 
may preclude the issuance of patents on certain chemical forms.  
4.115.   The Philippines ' IPR enforcement environment also presents challenges for U.S. rights 
holders, including the slow investigation of IPR -related cases by the Philippine Government and the WT/TPR/M/368 • The Philippines  
 
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  lack of judicial capacity in handling IPR enforcement cases. During this TPR, we would  be 
interested in learning more about the Philippine Government 's recent record on IPR and plans to 
increase IPR protection and enforcement.  
4.116.   We continue to have concerns with government procurement policies in the Philippines, 
where various laws and regula tions foreclose active and competitive bidding by U.S. companies. 
Eligibility requirements specify minimum Filipino ownership requirements for bidders, and domestic 
goods enjoy preferential treatment over imports in the bid evaluation process.  
4.117.   The Philippi nes has also remained on the sidelines of the WTO Agreement on Government 
Procurement. Given the benefits that could accrue to the Philippines from GPA membership, we 
strongly encourage the Philippines to adopt the agreement in the near future. Lifting the  
restrictions on government procurement makes even more sense, as the current Philippine 
government 's massive campaign to improve the national infrastructure could benefit greatly from 
the participation of foreign suppliers.  
4.118.   We look forward to hearing more  about the Philippines ' procurement market and efforts to 
broaden the opportunities for overseas companies on a fair and equitable basis.  
4.119.   We thank H.E. Dr Ceferino Rodolfo  and his delegation for their attention to our questions. 
We look forward to closer c ooperation with the Philippines here at the WTO, bilaterally, and in 
ASEAN and APEC.  
UKRAINE  
4.120.   We are closely monitoring the economic development of the Philippines and note that 
international trade remained central to country 's efforts in raising the incomes and welfare of its 
citizens. Ukraine attaches high importance to strengthening bilateral cooperation with the 
Philippines wishing to build a stronger economic and trade relationship. We commend the 
Philippines on its continuing commitment to the mu ltilateral trading system, as shown by its 
ratification of the T rade Facilitation Agreement.  
4.121.   Trade and economic relations between Ukraine and the Philippines have shown robust 
growth in agriculture, industrial sectors, tourism, energy and pharmaceuticals.  
4.122.   The total turnover in goods amounted to over US$200 million in 2017. Mutual cooperation 
of our countries covers different spheres of interest: food, timber and paper, machinery, minerals, 
chemical products, light industry 's goods etc. The volume of trade i n services between Ukraine and 
the Philippines amounted to around US$0. 5 million.  
4.123.   Within this TPR exercise Ukraine has raised a number of important questions on a range of 
issues of specific interest, covering the following topics:  
 banking;  
 customs procedures, namely risk criteria for shipments, Customs Modernization and Tariff 
Act provisions, including VAT exemptions and VAT refunds for e xported agriculture products;  
 Development Plan and Investment Priorities Plan;  
 sanita ry and phytosanitary measur es. 
4.124.   Ukraine would like to encourage the Republic of Philippines to improve its trade regime in 
the area of SPS increasing transparency, harmonizing its measures with international standards.  
4.125.   Among these issues we are particularly interested in getting furt her clarification from the 
Philippines on relevant administrative orders provided for tests of domestic and import meet and 
other products.  
4.126.   We are grateful to the Philippines for the comprehensive and exceptionally detailed 
responses to the Ukraine 's set o f questions, which we are reviewing closely.  
4.127.   In conclusion, I would also like to express our appreciation to the delegation of the 
Philippines for their hard work in preparing for this TPR.  WT/TPR/M/368 • The Philippines  
 
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  4.128.   On behalf of Ukraine I wish the Philippines a very productive and  successful Trade Policy 
Review and look forward to further strengthening our bilateral relations.  
BRAZIL  
4.129.   The 6.6% average annual growth during the period under review and the solid fiscal 
policies must be highlighted at the outset. We also commend the Gov ernment of the Philippines for 
the recently approved tax reform package.  
4.130.   Regarding trade policy, Brazil attaches great value to the commitment of the Philippines to 
the multilateral trading system. Among many other aspects, we highlight the Philippines ' support 
at MC11 to the Declaration on the establishment of a WTO informal work program for MSMEs.  
4.131.   We also note with appreciation the Philippines ' contributions to the WTO monitoring pillar. 
The Philippines has notified its domestic support measures covering the years from 2011 to 2015. 
At the same time, we also encourage the Government to notify more recent years.  
4.132.   Let me now turn to our bilateral trad e. After reaching a peak of US$ 1.2 billion in 2013, 
total trade flo ws dropped below US$ 700 million in the last  two years.  
4.133.   In 2017, the main products imported by Brazil from the Philippines were electronics. In the 
same year, Brazil exported to the Philippines mainly iron ore, copper, beef and chicken. These 
products are generally being further processed by indust rial plants in the Philippines, thus also 
contributing to local jobs.  
4.134.   In this context, we call attention to the average level of the applied tariffs to agricultural 
products – in particular to animal products (21.8%), sugars (15%) and coffee and tea (18.8% ). 
These levels are well above the average applied MFN tariffs to non -agricultural products (7.2%).  
4.135.   Tariff peaks are also concentrated in agricultural products, such as the 65% (out -of-quota) 
tariff to refined cane sugar. Furthermore, the goal – as stated  in the Secretariat report – of 
achieving self -sufficiency in certain agricultural products requires a careful look at the country 's 
agricultural trade measures.  
4.136.   In relation to more specific concerns, there is currently a backlog of export plants in Brazil  
that have applied for inspections by the phytosanitary authorities of the Philippines. The waiting 
period is excessive. Some have been waiting for inspections since 2008. This lack of predictability 
is a matter of utmost concern. We are engaging bilateral ly with the Philippine authorities on this 
subject. As one of the measures aiming at addressing this backlog, Brazil has recently submitted a 
letter of intent for the systemic accreditation of our exporting establishments, starting with 
poultry. We trust t hat we will be able to achieve progress on this matter in the near future.  
4.137.   Furthermore, we have received recurrent complaints from Brazilian exporters regarding 
excessive, unjustified labelling requirements and the application of standards that are not 
consistent with the Codex Alimentarius. According to these complaints, many measures seem to 
be excessive, unpredictable and discriminatory – apparently aiming much more at market control 
than public policy concerns. This perception is also registered in the Secretariat report as a matter 
of concern for other Members (page 48, paragraph 3.75).  
4.138.   We look forward to continuing to work with the authorities of the Philippines in order to 
further enhance our trade and investment relations.  
4.139.   We also wish to develop re lations between our two respective regional blocs. We therefore 
welcomed the MERCOSUR -ASEAN Ministerial Meeting held in New York last September, when 
Ministers agreed to further enhance MERCOSUR -ASEAN economic and trade relations.  
4.140.   In conclusion, we are thankful for the answers provided by the Philippines to the questions 
we submitted. These answers will be carefully considered.  
4.141.   We wish the delegation of the Philippines a very successful Trade Policy Review.  WT/TPR/M/368 • The Philippines  
 
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  THAILAND  ON BEHALF  OF ASEAN 
4.142.   I am hono ured to deliver this statement on behalf of ASEAN.  
4.143.   With an average annual GDP growth rate of about 6% since its last trade policy review, the 
Philippines is among the fastest growing economies worldwide. Trade and investment also 
significantly expanded over the review period. The Philippines recorded a 12. 6% growth in total 
exports of goods and services in 2014 and a strong inflow of foreign direct investment of 
US$7.9  billion in 2016.  
4.144.   As the Chair of ASEAN last year, the Philippines successfully promoted unity among ASEAN 
Member States and between ASEAN an d our global partners. The Philippines also enhanced its 
integration into ASEAN through trade. From 2013 to 2017, the Philippines ' trade with other ASEAN 
Member States accounted for 21% of its total trade volume.  
4.145.   ASEAN welcomes the Philippines ' efforts in  modernizing its trade policies and promoting 
investment facilitation to foster a more open, well -functioning, transparent and competitive 
business environment. These efforts include, among others, enhancing competition policy, 
eliminating various FDI rest rictions for professional services, and improving customs procedures. 
Together, these efforts will contribute to sustaining the Philippines ' strong economic growth, and 
more broadly, to the regional economic integration objectives of the ASEAN Economic Com munity.  
4.146.   ASEAN commends the Philippines ' for showing its strong commitment to preserving and 
strengthening the rules -based multilateral trading system, including by ratifying the TFA and 
implementing both the ITA and ITA Expansion commitments.  
4.147.   We also wis h to commend the Philippines ' active participation and commitment in 
spearheading the discussion on issues such as Micro, Small and Medium Enterprises (MSMEs), 
which are a vital component of developing members ' economies.  
4.148.   We wish the Philippines a successf ul Fifth Trade Policy Review.   
THAILAND  
4.149.   Thailand and the Philippines have maintained the close and vibrant relations. Both sides 
have the synergy to further deepen and expand cooperation in areas of mutual interest and to 
work together to strengthen the A SEAN Community as well as to collaborate at both the regional 
and international fora.  
4.150.   In view of bilateral trade, the Philippines has been one of our significant trading partners. 
In 2017, total trade between the two countries amounted to over US$10 billio n, grew by an 
additional 12%. The Philippines was among top ten export destinations of Thailand and the 5th 
largest supplyi ng market in the ASEAN region.  
4.151.   Since its 2012 review, the Philippines has seen strong GDP growth, driven mainly by 
consumption and i nfrastructure investment. We commend the reforms that the Philippines has 
undertaken to make the economy more competitive, especially the Philipine Developm ent Plan 
2017–2022, which is underpinned by sound regulatory practices and competition pol icy and op en 
services markets.  
4.152.   Thailand continues to value the Philippines ' contribution and commitment to preserving and 
strengthening the multilateral trading system. During the review period, the Philippines provided 
well over 300 notifications to the WTO and en acted laws to ensure effective protection and 
enforcement of intellectual property rights. The Philippines ' continuous supports for the 
development of predictable disciplines on fisheries subsidies under the WTO also deserve positive 
mention.  
4.153.   In this revie w, Thailand submitted a set of questions, covering the policies and measures 
of our interests such as the tariffication of its import restrictions on rice and the National Tourism 
Development Plan. We thank the Philippines in advance for wr itten responses.  WT/TPR/M/368 • The Philippines  
 
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  4.154.   In conclusion, Thailand would like to express our appreciation to the Philippines for the 
cooperation in every level and the friendly working relationship between our two Missions here in 
Geneva. We wish the Philippines every success in this Trade Policy Review.  
SINGAPORE  
4.155.   Singapore 's bilateral economic relationship with the Philippines is underpinned by strong 
and longstanding trade, investment, and people -to-people ties. The Philippines was Singapore 's 
14th largest trading partner in 2017, while Singapore  was the Philippines ' 4th largest trading 
partner in 2016. Bilateral trade in 2017 amounted to S$17.9 billion.  
4.156.   Investments between Singapore and the Philippines continue to grow. As at end -2016, 
investments from the Philippines into Singapore stood at S$3. 4 billion. Investments from 
Singapore into the Philippines stood at S$7.1 billion. Singapore projects in the Philippines range 
from hospitality, such as the Ascott Group which has several properties in the Philippines, to 
fashion, such as Charles & Keith, which is known for its trendy shoes.  
4.157.   Tourism between Singapore and the Philippines is robust. In 2017, the Philippines was the 
7th largest source of visitor arrivals for Singapore. Singapore was also the Philippines ' 7th largest 
source of visitor arrivals in 2016.  
4.158.   We congratulate the Philippines for an excellent Chairmanship of ASEAN in 2017, during 
which, ASEAN made commendable progress in regional economic integration efforts. The 
Philippines ' good work has laid a solid foundation for Singapore 's ASEAN Ch airmanship this year. 
The Philippines has also performed well in implementing its ASEAN Economic Community (AEC) 
commitments at a national level. By the end of 2016, the Philippines had implemented 91.3% of 
all measures under the AEC 2015 Scorecard.  
4.159.   We we lcome the Philippines ' ongoing efforts to deepen the integration of the regional 
services market, including its ratification of various commitments under the ASEAN Framework 
Agreement on Services. This has deepened services integration within ASEAN, enhanc ed 
cooperation in services and reduced barriers for services suppliers and businesses in the region.  
4.160.   We further commend the Philippines for showing its commitment to the multilateral trading 
system by, inter alia, ratifying the TFA and notifying its Categ ory 'A' commitments, implementing 
its ITA and ITA2 commitments, and making efforts to comply with its notification obligations. We 
hope the Philippines will continue these efforts to close remaining notification gaps, and cons ider 
participating in the GPA.  
4.161.   We look forward to our continued cooperation with the Philippines at the WTO, such as on 
MSMEs, and wish the delegation a successful TPR.  
NEW  ZEALAND  
4.162.   The reports from the Government of the Philippines and the Secretariat provide a useful 
overview of the P hilippines ' trade policy. New Zealand congratulates the Philippines on its 
economic performance since its last Trade Policy Review in 2012, with the Philippines seeing 
continued economic growth at an average rate of about 6.7% per annum.  
4.163.   New Zealand and t he Philippines share a warm and close bilateral relationship, with our 
two-way trade reaching $1 billion in 2017 and a fast growing services sector in both directions. 
Our close bilateral relationship is reinforced by our common regional memberships. These  include 
Asia-Pacific Economic Cooperation, the East Asia Summit and the Regional Comprehensive 
Economic Partnership. We also enjoy special trade arrangements through the ASEAN Australia New 
Zealand Free Trade Area.  
4.164.   Like others, New Zealand has posed ques tions about the Philippines domestic agricultural 
reform processes. New Zealand supports plans by the Duterte Administration to invest more in 
provincial regions outside Luzon in the context of addressing poverty and improving  farm to 
market infrastructure . In terms of better realising the Philippines comparative advantage in the 
agricultural sector, we are interested in what reform plans Philippines has for the rice is sector, in WT/TPR/M/368 • The Philippines  
 
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  particular given the high levels of protection and support provided to it wit hin the budget of the 
Department of Agriculture.  
4.165.   In the area of fisheries subsidies, we welcome the Phi lippines pursuit of WTO reform.  On 
this issue we have posed questions, as we do routinely in TPRs, around the extent and nature of 
the Philippines domest ic policies and how they ensure that these programmes do not contribute to 
IUU fishing or  overfishing and overcapacity. We would be particularly interested in whether the 
Philippines still has any programmes establishing duty or tax rebates for fuel used i n fishing 
operations.  
4.166.   We welcome the Philippines ' recent effort to update on its agriculture d omestic support 
notifications. We encourage the Philippines to complete this process and indeed extend this to 
other areas as several notifications remain overdue . 
4.167.   With the Philippines being a key and influential developing country and an active 
participant in WTO negotiations and discussions, we look to it to exercise leadership and to work 
constructively towards trying to find solutions to impasses, which have been blocking further 
progress in a number of areas of WTO negotiations, and thereby permit the WTO to make progress 
towards remaining relevant to the changed global economic circumstances of the 21st century.  
4.168.   Thank you  for the opportunity to contribute to  this important trade policy review.  
INDONESIA  
4.169.   Indonesia associates itself with the statement made by Thailand on behalf of ASEAN.  
4.170.   On behalf of the Indonesian delegation, I would like to convey my appreciation to the 
Philippines delegation for giving us re newed opportunity to exchange points of view and comments 
on its trade policies and practices. The Government of the Philippines has also provided us with a 
detailed report and early responses to our written questions.  
4.171.   We would like to congratulate the Phi lippines as the country has been experiencing strong 
GDP growth during the period under review. We learned that the Philippines has made a 
comprehensive Development Plan that will be implemented started from 2017 to 2022 that focuses 
on making the economy more competitive, underpinned by sound regulatory practices and 
competition policy, and open services markets. We are also encouraged by the Philippines ' 
initiatives in improving its competitiveness through adoption of Competition Act.  
4.172.   The Philippines has always become Indonesia 's important trading partners in the South 
East Asia region. We have seen an increase in total trade between Indonesia and the Philippines, 
from US$4.6 million in 2015 to US$6 million in 2016. We welcome the Philippines positive efforts 
in trade policies and competitive business environment, which will contribute to regional economic 
integration objectives of the ASEAN Economic Community 2025. We also took note that the 
Philippines has ratified the TFA and implemented both the ITA  and the ITA expansion 
commitments.  
4.173.   On this occasion, we would like to reiterate Indonesia written questions on the Philippines ' 
trade policies and measures concerning notifications obligation in WTO, export restrictions on rice, 
corn and sugar, tarifficat ion of quantitative restrictions on rice, local content requirements, pre -
shipment inspection, and also standards.  
4.174.   Indonesia believes that this occasion is a good momentum for Indonesia to learn about the 
Philippines trade policies and measures. Furthermor e, we can also learn about the impact of those 
policies and measures not only domestically but also externally, especially to the other WTO 
Members. As for the Philippines, we believe that this TPR is a good opportunity to examine its 
policies and measures  which in the end will promote the country 's economic development and 
growth.  
4.175.   Finally, to finish our remarks, once again, we would like to express our appreciation to the 
delegation of the Philippines for their hard work. We are looking forward to a follow -up 
communications with the Philippines delegation, including through and her Geneva -based team.  WT/TPR/M/368 • The Philippines  
 
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  4.176.   Indonesia wishes the Philippines a successful Trade Policy Review.  
MALAYSIA  
4.177.   We associate ourselves with the statement by Thailand on behalf of ASEAN.  
4.178.   Since the  last Trade Policy Review (TPR) in 2012, the Philippines ' economy has experienced 
vigorous economic growth at a rate of above 6% each year. Despite natural disasters such as 
Typhoon Yolanda and the dry weather associated with El Niño having an impact on ag riculture and 
fisheries growth in 2014 -2015, we acknowledge the Philippines ' positive economic performance at 
the average growth rate of 6.6% for the last five years.  
4.179.   The Philippines has also made visible achievements in developing its own legal framework  
and institutions for competition policy with the introduction of its first Competition Act in 2015. We 
wish to congratulate the Philippines on the establishment of a competition authority, namely the 
Philippine Competition Commission (PCC), in 2016. Malay sia looks forward to engaging more with 
the Philippines on this issue within the ASEAN region.  
4.180.   At the multilateral front, we commend the Philippines ' continuous efforts in pursuing 
progressive trade and investment policies, such as the Philippines ' ratific ation to the Trade 
Facilitation Agreement, notification submission pertaining to Category A commitments and 
contribution to the Information Technology Agreement (ITA) via modification of its schedule of 
concessions in line with the Nairobi Ministerial Decl aration on the Expansion of Trade in IT 
Products.  
4.181.   We would also like to highlight on the Philippines ' active contribution in promoting 
discussions on Micro, Small and Medium Enterprises (MSMEs) in the WTO with the vision to enable 
MSMEs to be active playe rs in the global market via continuing discussions on the role and 
importance of the MSMEs in the economic environment. The Philippines has also been a strong 
advocate on MSMEs in the ASEAN context.  
4.182.   In 2017, the Philippines was ranked Malaysia 's 15th larg est trading partner in the world 
and 4th largest trading partner in ASEAN region. Malaysia 's total trade with the Philippines 
increased b y 26.1% from US$4.88 billion in 2016 to US$ 5.94 billion in 2017, with exports to the 
Philippine s growing by 21.2% to re ach US$ 3.85 billion. It is important to highlight that the 
Philippines is currently one of the most dynamic economies in the East Asia region, with sound 
economic fundamentals and a globally recognised competitive workforce.  
4.183.   While efforts have been undert aken by the Philippines to eliminate the restrictions of 
foreign participation in some sectors, we encourage the Philippines to continue pursuing relaxation 
of foreign participation rules in some of the remaining areas of interest. We also welcome efforts in 
reforming the food safety regime, with the formulation of a new Food Safety Act and encourage 
the continuous notification at the relevant Committee.  
4.184.   To conclude, allow me to thank the Philippines ' on the response to our questions which we 
will examine with great interest. We shall also be forwarding additional questions on subsidies 
provided by the Philippines such as the crop insurance, as looks forward to attaining the response.  
4.185.   We wish the Philippines a productive and successful Fifth Trade Policy Re view.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.186.   The Philippines and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
have enjoyed a close and fruitful trading relationship for many years. The total value of two -way 
trade between was just on US$12 billion in 2017, which makes the Philippines our 10th largest 
trading partner. We recognize also that the Philippines has been recording a strong inflow of 
foreign direct investment (FDI) in recent years, resulting largely  from an improvement in the 
economic fundamentals and the business environment, as well as sound macroeconomic policies. 
Accor ding to the Secretariat r eport, we have been one of its main sources of FDI since 2011  WT/TPR/M/368 • The Philippines  
 
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  4.187.   Since its last Trade Policy Review in 2012,  the Philippines ' economy has grown at an 
average annual rate of about 6%, driven mainly by consumption and infrastructure investment. 
And, as for the future, it is good to see that its Development Plan 2017 -2022 focuses on making 
the economy more competit ive, underpinned by sound regulatory practices, a competition policy, 
and open services markets.  
4.188.   My delegation has already submitted written questions to the Philippines in advance, 
relating to various topics such as, trade policy decision procedures, the Customs Modernization 
and Tariff Act, Halal Certificates, and Intellectual Property Rights. We look forward to receiving 
replies in due course.  
4.189.   We are also pleased to note the Philippines ' on-going commitment to global engagement 
and policy liberalization,  with its determination to pursue regional integration. In addition, I would 
like to acknowledge the role played by the Permanent Mission of the Philippines in our collective 
work here in Geneva, especially in promoting the Joint Ministerial Statement at t he recent MC11 
on the establishment of a WTO informal work programme for MSMES. We shall continue to work 
together to translate our common energy into an action -oriented process that can deliver 
meaningful steps for MSMEs.  
4.190.   And finally, our close and friend ly relationship with the people of the Philippines not only 
applies to just economic factors, but to cultural tradition and social integration too. We very much 
appreciate the hard work and contributions made by the expat population of 150,000 Filipinos to  
our own economic development. "A friend in need is a friend indeed. "  
4.191.   May I conclude by wishing the Philippines a very constructive and successful Trade Policy 
Review.   
REPUBLIC  OF KOREA  
4.192.   Korea and the Philippines have maintained a close economic relationship since the 
establishment of diplomatic relations in 1949. Our economic relationship has been further 
enhanced since the entry into force of the FTA in goods between Korean and ASEAN in 2008, the 
FTA in Services in 2009, and the FTA in Investment in 2010. Last year, the two -way trade volume 
between our two countries amounted to US$14.3 billion, which is a record high and 2 times larger 
than that of 2009.  
4.193.   Economic relations between Korea and the Philippines are expected to increasingly expand 
as negotiations for regional free trade agreements which both countries participate in are in 
progress. The negotiations for the further liberalization of Sensitive Track products under the 
ASEAN -Korea Trade in Goods Agreement (AKTIGA) have been under way since 2016. Moreover, 
the Regional Comprehensive Economic Partnership negotiations which commenced in 2013 are 
ongoing with the goal of reaching an agreement by the end of 2018.  
4.194.   As the Secretariat 's report highlights, my delegation notes that the Philippine economy has 
grown at an average annual rate of about 6%. It is noteworthy that this growth is driven by 
infrastructure investment, which in turn lays the foundations for further development. The re port 
also indicates that foreign direct investment (FDI) has increased four -fold during the review 
period.  
4.195.   In this regard, we recognize and praise these achievements made by the Philippines. 
Through the Philippine Development Plan 2017 -2022, the Philippine s is expected to achieve a path 
to even higher growth. The Philippines also accepted the WTO Trade Facilitation Agreement and 
submitted a notification regarding its category A commitments during the review period and 
recently category B and C. Korea also a ppreciates the Philippines for their active contribution to 
MSMEs discussion in the WTO. We believe that all of these efforts made by the Philippine 
government will contribute much towards economic growth and trade expansion for the Philippines 
going forwa rd. 
4.196.   While highlighting the Philippines ' achievements, I would also like to take this opportunity 
to touch upon some concerns regarding the Philippines ' policies. As previous speakers pointed out, 
despite steps towards liberalization taken by the Philippine s, Korea is still concerned about the WT/TPR/M/368 • The Philippines  
 
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  restrictive nature of the FDI regime. For example, the Philippines has established a Foreign 
Negative List (FINL) of activities under which FDI is restricted. As the Secretariat 's Report 
highlights, attraction of furth er FDI has been hampered by factors such as infrastructure problems 
and restrictions on foreign ownership.  
4.197.   At this TPR, Korea submitted our written questions regarding the restrictions on FDI. We 
thank the delegation of the Philippines for providing answer  to the questions, which will be 
carefully reviewed in our headquarter . 
4.198.   Korea would like to highlight the efforts the Philippines has made since the last review to 
enable an overall efficient trading environment. We therefore wholeheartedly encourage the 
Philippines to keep in the direction of facilitating trade and investment and improving the overall 
economic environment in a sustainable manner.  
4.199.   Korea looks forward to working with the Philippines to enhance opportunities for trade and 
investment, and in turn promote the economic growth of the Philippines.  
4.200.   Finally, we would like to once again express our sincere appreciation to the delegation of 
the Philippines for their hard work and wish them every success in this TPR.  
TURKEY  
4.201.   The Philippines is one of t he fastest growing counties in the Southeast Asia.  
4.202.   Like many other delegations that took the floor today, we also welcome the average 
growth rate of the Philippines economy, which is about 6% during the review period. We think that 
the reduction in the po verty rate, growth rate of the exports of electronics and electrical go ods, 
the decrease in the total G overnment debt to GDP ratio, strong inflow of foreign direct investment 
since the last review are promising figures. We believe the Philippines ' economy will be even 
stronger and more competitive with the implementation of the Development Plan 2017 -2022.  
4.203.   The Philippines is a very important partner for Turkey in Southeast Asia and we are closely 
in cooperation in various platforms such as the UN, the WTO a nd the ASEAN. Turkey sees the 
Philippines as a key country, which greatly contributes to prosperity of its region.  
4.204.   In this regard, we are glad that the 1st meeting of Turkish -Philippine Joint Economic 
Committee took place last month in Ankara, where we de fined several cooperation areas. On this 
occasion, we also decided to double our trade by the end of 2019.  
4.205.   We are pleased to see that during the review period, the Philippines has signed a number 
of free trade agreements with countries and regions around the world. At this point, it is important 
for us to mention that Turkey also would like to explore the possibility of making an FTA with the 
Philippines to boost bilateral trade between our countries.  
4.206.   Being one of the last speakers today, we will not repe at the other important points 
mentioned by other delegations today.  
4.207.   One issue, only, we would like to bring to the attention of the Philippine delegation today is 
on agriculture. While underscoring the progress in several procedural areas during the revie w 
period, we ask the Philippines to accelerate conclusion of the review of Harmful Risk Analysis 
reports and tests for agricultural products.  
4.208.   Finally, we would like to mention our appreciation to be given the opportunity to make our 
points known on the tra de policy of the Philippines and we wish the Philippines a very successful 
review.  
COSTA  RICA 
4.209.   Costa  Rica and the Philippines share similar climates and histories that have led us along 
parallel paths in the areas of economics and trade. We both have a sign ificant comparative 
advantage in agriculture and are among the world's leading producers of tropical products such as WT/TPR/M/368 • The Philippines  
 
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  banana and pineapple. At multilateral level we are very concerned and interested in achieving a 
fairer system that allows us to compete on  equal terms. As members of the Cairns Group we both 
actively promote the process of agricultural trade reform. We are also transition economies 
focused on services and have leveraged tourism as a development driver. Additionally, we also 
understand that n ew technologies offer new opportunities and in this respect the Philippines has 
led the way with their rapid implementation of the extension of the Information Technology 
Agreement (ITA) agreed at Nairobi in December  2015.  
4.210.   Domestically, the Philippines has  enjoyed sound macroeconomic management since its last 
Trade Policy Review. According to the report by the Secretariat, in recent years the country has 
experienced annual average growth rates of 6%; a falling unemployment rate that is close to full 
employm ent; low inflation and a fiscal deficit that is under control; and strong inflows of foreign 
direct investment. Manufacturing remains robust while the services sector has injected dynamism 
into exports. In particular, exports of computer and information se rvices and other business 
services – technical and trade -related, amounted to US$17.3  billion in 2016, or 70% of total 
services exports. The Philippines has also entered its "demographic window": its very young 
population represents a major opportunity to forge a new path for economic growth.  
4.211.   Despite this, the Philippines also faces significant challenges: although recent years have 
shown that it is indeed possible to reduce poverty, it still afflicts one in five Filipinos. The need for 
social investment is  even more urgent bearing in mind that the structural transformation of the 
economy towards one based on knowledge and innovation makes a rethink of educational and 
employment strategies unavoidable if the young people who comprise the bulk of the country' s 
population are to become successful members of the labour market. Infrastructure quality is 
another bottleneck that is magnified by the country's island -based geography, particularly 
affecting the development of agriculture and tourism, two sectors that account for a significant 
share of employment and economic activity. To this we must add the fact that it is highly 
vulnerable to climate change and natural disasters. On that point the efforts made by the 
government have been very positive: it has impleme nted aggressive policies to increase annual 
infrastructure spending to a minimum of 5% of GDP and achieved that figure in 2016.  
4.212.   On trade, the Government report notes the risk factor inherent in the concentration of 
revenues in a few goods and services, whi ch exposes the sector to shocks in demand and supply 
of these products. The delegation of Costa  Rica must also point out that barely 65% of the 
Philippines' tariff lines are bound at the WTO so there is ample scope for the country to increase 
the predictab ility and transparency of its tariff system. Additionally, we note the application of 
restrictions on foreign ownership in telecommunications, agriculture and restaurants, an area that 
often complements tourist accommodation. In that respect the delegation  of Costa  Rica would 
suggest exploring the possibility of implementing alternative methods that would allow greater 
foreign direct investment in these sectors.  
4.213.   We have a profound interest in the national policies that the Philippines is delivering in 
relation to infrastructure, resilience to climate change, innovation policy, trade facilitation, the 
promotion of tourism, the digital economy and data protection. As a country that aims to be 
carbon neutral, we will monitor the National Renewable Energy Progra mme closely. We also look 
forward to the outcome of the E -commerce Roadmap 2016 -2020, and the Roadmap for 
Digital  Start-ups: 2015 and Beyond. We have identified these as priority areas for Costa  Rican 
trade policy and are very involved in the discussions c urrently under way at the multilateral level.  
4.214.   Mr Chairman, although Costa  Rica has not submitted any questions on this occasion, we 
have an ongoing interest in the trade policies of a partner with such an important role in world 
trade and leadership in the  WTO's work as the Philippines. Finally, the delegation of Costa  Rica 
thanks the Philippines once again for their report and the replies they have supplied; we wish the 
country every success in this Trade Policy Review.  
INDIA  
4.215.   We note from the Secretariat and Government reports that the economy of the Philippines 
has recorded high average real GDP growth of 6.3% from 2010 to 2016. The GDP per capita also 
increased from US$2850 in 2012 to US$2950 in 2016. The major challenges for the Philippines 
include stru ctural reforms, increasing investment in infrastructure, social expenditure, WT/TPR/M/368 • The Philippines  
 
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  diversification of the basket of exports and vulnerability to natural disasters. We comment the 
Government of the Philippines for the initiatives taken to address these challenges  and maintain a 
healthy rate of growth of the economy. These include the Philippines ' Development Plan 
2017-2022 which focuses on making the economy more competitive by improving regulatory 
practices, competition policy, facilitating investments and openin g services markets and reforms in 
other areas.  
4.216.   India and the Philippines share close and friendly relations. There are regular high -level 
exchanges between both countries including under the framework of ASEAN. Trade between both 
countries stood at US$1.98  billion in 2016 -17. Though modest, there is considerable potential to 
expand our trade ties in areas including automobiles, engineering goods, chemicals, iron and steel, 
meat animal and agricultural products. Both countries also have a broad based institu tional 
framework in place from promoting trade and investment between both countries. Indian 
companies are investing in the Philippines in areas like textiles, IT, automobiles and 
pharmaceuticals. Similarly, companies from the Philippines are also investin g in India in various 
areas including engineering machinery, power and manufacturing sector.  
4.217.   Under the Look East Policy, India attaches great importance to its multifaceted and special 
relations with the ASEAN countries. Recently, at the ASEAN -India Commem orative Summit in the 
Delhi Declaration, our leaders highlighted the need to further strengthen ASEAN -India economic 
relations including through the full utilization and effective implementation of ASEAN -India free 
Trade Area. For capacity building and hum an resources development, India is also regularly 
offering scholarships to professionals from the Philippines under India 's Economic and Technical 
Cooperation programme.  
4.218.   I also wish to highlight a few specific issues and concerns which are impacting the po tential 
of our bilateral trade relations:  
i. India is exporting bovine meat to the Philippines. However, our exports are adversely 
affected due to the restrictions including certification/inspection requirements for export to 
wet markets in the Philippines.  
ii. There is considerable potential in the area of automobiles. However, the high rate of duties 
in the Philippines remains a major barrier for the Indian automobile industry. We would 
urge the Philippines to look into this and consider lowering tariffs to rate s comparable with 
other countries.  
iii. India has a highly competitive and globally acclaimed pharmaceutical industry. However, 
our companies find it difficult to trade in the Philippines due to the complex regulatory 
framework.  
iv. Issues related to SPS measures a lso affect trade of agriculture and animal products from 
India to the Philippines.  
 
4.219.   We would urge the Government of the Philippines to look into and address these issues.  
4.220.   To conclude, we look forward to working closely with the authorities of the Philippin es for 
further expanding and harnessing the potential of our trade and investments ties for mutual 
benefit. We wish the delegation of the Philippines a productive and successful TPR.  
BRUNEI  DARUSSALAM  
4.221.   At the outset, Brunei Darussalam would like to associat e herself with the ASEAN statement 
delivered by Singapore.  
4.222.   Our diplomatic relation with the Philippines was officially  established in 1984, and since 
then our cooperation has been robust and dynamic. This cooperation spans across a wide  range of 
area, inc luding labour, defense, agriculture, educa tion, health, culture, ICT, and communications.  
4.223.   In relation to trade, we enjoy strong two -way trade which stood at US$33 million in 2016, 
and among ASEAN, Philippines was Brunei Darussalam 's 6th largest trading par tner. As we 
continue to further enhance economic cooperation bilatera lly, regionally under the ASEAN 
Economic Community and sub -regionally under the ambit of BIMP -EAGA, Brunei Darussalam is 
confident that our trade ties will remain strong in the future.  WT/TPR/M/368 • The Philippines  
 
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  4.224.   Brunei Darussalam commends the economic performan ce of the Philippines since the last 
review. The structural transformation that the Phil ippines continues to pursue has evidently 
contributed to its sustainable growth, expansion in the manufacturing sector and attractiveness as 
an investment destination. On this note, Brunei Darussalam applauds the  Philippine Development 
Plan in keeping up the mome ntum to improve its competitive environment.  
4.225.   Brunei Darussalam is encouraged with th e Philippines  commitment to the Multilateral 
Trading System. The Philippines ratified the Trade Facilita tion Agreement in October 2016, and this 
will supplement their encouraging trade faci litation reform in simplifying, modernizing customs 
rules and proce dures, as well as import clearances.  
4.226.   Brunei Darussalam applauds the proactive role of the Ph ilippines has played in pushing the 
Micro Small Medium Enterprises agenda. Taking into account of their domestic initiatives  in 
addressing critical challenges of MS MEs development, Bru nei Darussalam looks forward to hear 
Philippines ' views on how we can address these challe nges together in a multilateral context.  
4.227.   Before I conclude, we would like to take this opportunity to wish  the Philippines every 
success in their fifth trade policy review.  
MYANMAR  
4.228.   Myanmar strongly supports the WTO 's TPR mechanism which aims at facilitating the 
smooth functioning of the multilateral trading system by enhancing the transparency of Members ' 
trade policies. This TPR mechanism is useful  and supportive for members in enhancing 
transparency and understanding of the member 's trading system in a comprehensive approach.  
4.229.   Myanmar and the Philippines are closely working together not only in WTO 's Multilateral 
Trading System but also in regional  trade agendas including ASEAN and ASEAN plus. In terms of 
bilateral relationship, Myanmar and Philippines established the diplomatic relations in 1956.  
4.230.   According to our record, the two -way trade between Myanmar and the Philippines reached 
over 56 million  US dollars in 2016 -2017 Fiscal Year. Our major export products to the Philippines 
are pulse and beans, clothes, rice, and corn. Our import products from the Philippines are 
pharmaceutical products, plastic products, machine and machinery products, milk po wder, 
detergents, and construction products.  
4.231.   In terms of the Foreign Direct Investment in Myanmar, the volume of investme nt from the 
Philippines was US$ 147.173 million in September 2017.  
4.232.   According to the Secretariat 's report, at first, I would like to highlight some economic 
development of the Philippines. The economy of the Philippines has increased 6% annually since 
2012. The services sector contributes 51% to GDP and manufacturing sector contributes 25% to 
GDP. The poverty rate of the Philippines dec reased from 25.2% in 2012 to 21.6% in 2015. We also 
noted that the Philippines has a very young population which accounts for 70% of working age 
population.  
4.233.   The merchandise trade vo lume of the Philippines was US$ 142.2 billion in 2016. This trade 
performanc e was remarkable and the ratio of merchandise trade to GDP was 46%. During the 
review period, the Philippines recorded a strong inflow of FDI which amount reached US$ 7.9 billion 
in 2016. This clearly shows that the Philippines has improved the economic fun damental and 
business environment as well as sound macroeconomic policies.   
4.234.   Over the review period, the Philippines remains unchanged to the institutional framework 
for trade policy except the area of SPS measures and agriculture. The Philippines has pref erential 
trading agreements with 15 partners including ASEAN. FTA negotiations with the EU are still 
ongoing. The average applied MFN tariff is 7.6%, up from 6.4% in 2011. We noted that many 
import items are subject to license or permits when imported, and  multiple permits or licenses are 
required for certain products.  
4.235.   The Philippines consolidated its regulatory framework for trade contingency measures 
under the Customs Modernization and Tariff Act enacted in 2016. The Competition Act was enacted WT/TPR/M/368 • The Philippines  
 
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  in 2015 an d a competition authority was established in 2016. In addition, new legislation on public 
procurement entered into force in 2016.  
4.236.   We learned that Government of the Philippines has strongly increased its infrastructure 
spending, from 2.7% of GDP in 2013 to 5% in 2016. The central bank of the Philippines maintains 
an inflation -targeting policy with 3% target set. We also well observed that the Philippines 
Development Plan 2017 -2022 focuses on making the economy more competitive with sound 
regulatory practices and open services markets.   
4.237.   The Philippines is actively playing in both regional and multilateral trading system. The 
Philippine s is making her best effort especially to the informal discussion on the subje ct of MSMEs 
in the WTO. 87 WTO M embers signed the joint statement declaring on MSMEs in MC11 and we 
really appreciate the Philippines for its active participation on this process . We want to see 
continued and effective support of the Philippines to the WTO especially in safeguarding and 
strengthening multilateral trading system.  
4.238.   In conclusion, we wish the delegation of the Philippines every success in their 5th Trade 
Policy Review . Thank you for your kind attention.  
VIET  NAM 
4.239.   We would like to associate ourselves with the ASEAN joint statement delivered by Thailand.  
4.240.   First of all, we would like to commend the Philippines for its positive economic performance 
since its last TPR in 2011  with an average real GDP growth rate of 6.6%, which places it among 
the fastest growing economies in the world. The robust growth was made possible thanks to the 
Philippines ' active pursuit of various reform programs as well as its well -managed macroecono mic 
policy efforts.   
4.241.   Since Viet Nam and Philippines upgraded our relations to a strategic partnership in 2015, 
the bilateral trade has brought about positive res ults. During the period of 2012 -2017, the 
two-way trade has increased 7.1 % and reached US$4 billion in 2017. Of the total, Viet Nam 's 
export to Philippines recorded US$2.8 billion, a year -on-year increase of 8.7 %, while import from 
Philippines rose by 3.7 % year-on-year to US$1.2 billion.  
4.242.   In terms of investments, by the end of 2017, the Philippines  has had 72 projects in Viet 
Nam, ranking 33th out of 116 countries and territo ries investing in the country. The two countries 
aim to further promote cooperation in a number of fields such as oil and gas, electricity and 
petroleum.  
4.243.   We highly value the dev elopments that the Philippines has made despite typhoon Yolanda, 
the dry weather associated with El Niño and external headwinds and believe that the country 's 
Development Plan 2017 -2022, which focuses on making the economy more competitive, 
underpinned by sound regulatory practices and competition policy, the strength of higher domestic 
demand and open services markets as stated in its Government Re port, will be another success.  
4.244.   Viet Nam also commends the Philippines ' efforts in deepening its integration an d 
supporting the multilateral trading system by, among other things, ratifying the TFA and 
implementing both ITA and ITA Expansion commitments.  
4.245.   As strategic partners, Viet Nam and the Philippines have been continuing to deepen and 
broaden the bilateral tra de relations. In this regard, Viet Nam encourages the Philippines to 
continue pursuing progressive liberalisation in agricultural trade and to consider further reforms to 
enhance productivity of its agricultural sector.  
4.246.   I would like to conclude by putting on record our high appreciation for the Philippines 's 
constructive engagement and commitment to the rules -based multilateral trading system, and by 
wishing the Philippines every success in its economic and social development. I would also like to 
wish the Philippines delegation a very productive and successful Trade Policy Review.  
  WT/TPR/M/368 • The Philippines  
 
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  SRI LANKA  
4.247.   My delegation notes with interest the achievements of the Philippines ' economy over the 
last review period on diverse perspectives such as:  
 economic growth at an avera ge annual rate of 6% . 
 decline of poverty rate from 25.2% in 2012 to 21.6% in 2015 . 
 export growth of major export item, i.e. electronics and electrical goods from 9.6% in 2011 
to 25.6% in 2016 . 
 growth of export services . 
 decrease of government debt . 
 growth of attraction of foreign direct investment . 
4.248.   It is interesting to note and inspired us to chase the contribution made by the Technical 
Committee on WTO Matters and the Committee for the ASEAN Economic Community which are 
directing the constructive trade pol icies in the country.  
4.249.   We believe that the sound and consistent economic policies of the Philippines ' Government 
such as the 'Philippine Development Plan 2017 -2022' will help to improve the country 's economic 
status through open services markets, good regu latory practices and sound competition policy and 
institutions focusing on the competitiveness of the economy.  
4.250.   My delegation has concerns over increase of average applied MFN tariff rates from 6.4% in 
2011 to 7.6% in 2017, which has been resulted from HS 2017 transposition and low percentage of 
bound tariff lines.  
4.251.   The bilateral trade between Philippines and Sri Lanka stands at a moderate level, but 
increasing over the years. The total trade turnover between two countries in 2010 has increased 
3.5 folds by  2017. Both Philippines and Sri Lanka have enjoyed favourable  balance of trade from 
time to time. Export of Printed books, newspapers, pictures and other products of the printing 
industry to the Philippines has become dominant accounting for 30% of Sri Lan kan exports to the 
Philippines, followed by Textile and Apparel. Food preparations , for infant , use is the top most 
importing item to Sri Lanka from the Philippines over the years.  
4.252.   With the objective of strengthening trade and economic ties between the tw o countries a 
Memorandum of Understanding between the Philippines Chamber of Commerce and Industry and 
the Federation of Chambers of Commerce and Industry of Sri Lanka was signed in Manila. The aim 
of this MOU was to exchange information, develop business contacts and to establish Business 
Councils in each country.  
4.253.   In the multilateral front, my delegation appreciates the Philippines ' highly valued 
contribution to the multilateral trading system and its active engagement in the negotiations in the 
WTO, speci ally initiating MSMEs discussions at the multilateral frontier. Philippines ' active 
contribution at G33 deliberations is highly commendable. The Philippines ratified the Trade 
Facilitation Agreement in October 2016 and has duly fulfilled its notification o bligations. It is 
interesting to note that most of the TFA provisions have been implemented by the time the 
Agreement came into effect. We welcome the implementation of Customs Modernization and Tariff 
Act of 2016 which aims to modernize customs rules, exp edite customs procedures, reduce 
opportunities for corruption, and improve customs service delivery.  
4.254.   In concluding, let me thank both the WTO Secretariat and the Government of the 
Philippines for the comprehensive reports made available in advance to this meeting. I also thank 
the discussant for his analytical presentation at the beginning of this review. My delegation 
sincerely wishes the Philippines ' delegation a successful deliberation on its fifth Trade Policy 
Review.  
GUATEMALA  
4.255.   The delegation of Guatema la welcomes the implementation during the review period of the 
Philippines' National Quality Infrastructure Strategy to improve the quality of the products and WT/TPR/M/368 • The Philippines  
 
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  services produced in the country and ensure consumer safety, as well as the adoption of measures  
to increase competitiveness and encourage the opening of new markets.  
4.256.   Another major breakthrough is the enactment in 2015 of the Philippine Competition Act 
which promotes consumer protection and provides for the effective enforcement of anti -trust laws 
to accelerate investment and boost job creation.  
4.257.   On trade facilitation, since 2016 the Philippine Government has been working on the 
implementation of rules to simplify customs procedures and the elimination of unnecessary 
implementation costs. The aim is fo r customs services to be high quality, transparent and efficient.  
4.258.   Moving onto investment, by implementing the Philippine Development Plan and Investment 
Priorities Plan the country aims to expand 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 enterprises (MSMEs), women, young people and vulnerable groups.  
4.259.   Particip ation in ASEAN has become instrumental in driving the economy by enabling the 
Philippines to play a prominent role in its regional trade environment.  
4.260.   The Philippines has made efforts to promote greater innovation by conducting guided 
research to develop ne w business sector sources. 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.  
4.261.   It should be note d that during the review period, the Philippine Government enacted 
legislation to strengthen the protection and enforcement of intellectual property rights: 
it established the Bureau of Copyright and Other Related Rights whose responsibilities include the 
accreditation of collective management societies and the granting of copyright for works of all 
kinds.  
4.262.   Let me conclude by wishing the delegation of the Philippines every success in this 
fifth trade  policy  review.  
HONDURAS  
4.263.   The delegation of Honduras notes that since its last Trade Policy Review in 2012, the 
Philippine economy has grown at an average annual rate of about 6%, [sic]  
4.264.   the poverty rate has fallen from 25.2% in 2012 to 21.6% in 2015 and the total 
government debt to GDP ratio decreased from 41% in 2012 to 35% in 2016.  
4.265.   At the same time we note that inflation currently stands at 3% and the Government has 
increased infrastructure expenditure considerably, from 2.7% of GDP in 2013 to 5% in 2016.  
4.266.   The Philippines continues to have ample international rese rves: in 2016 they rose to 
US$80.7  billion, covering almost nine months of imports.  
4.267.   The reports we have studied note the adoption of the Philippine Development Plan 
2017-2022, which focuses on making the economy more competitive through sound regulatory 
practices and competition policy, and open services markets.  
4.268.   Additionally, the Government has adopted a National Renewable Energy Programme to 
promote the development of renewable energy, and in June  2017 the Department of Information 
and Communication Tec hnology (DICT) issued a National Broadband Plan to act as a blueprint for 
improving the telecoms infrastructure and promoting an open access network in the country.  
4.269.   The delegation of Honduras is pleased to see that ensuring food security remains the most 
important objective of Philippine agricultural policy, which includes a credit programme for 
farmers; a livestock, dairy and poultry programme; and a government export marketing campaign 
for high -value crops.  WT/TPR/M/368 • The Philippines  
 
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  4.270.   Agriculture and forestry contribute around 10% t o GDP and the Philippines ranks among 
the major world producers of bananas, coconuts, pineapples, and rice, and is a net exporter of fish 
and fish products.  
4.271.   Additionally, sugar cane is one of the country's five major crops and the crop year 
2016/2017 (Sept ember to August) set a 38 -year record when production reached 2.5  million 
tonnes of raw  sugar.  
4.272.   We note that the Food Safety Act of 2013 is the first comprehensive food safety law and 
applies to all food from "farm -to-fork", whether domestically produced or  imported.  
4.273.   The delegation of Honduras notes additionally that the services sector is the major 
contributor to GDP and employment and that during the review period the share of financial 
services remained at some 10% of GDP.  
4.274.   In 2016, the Philippines was ran ked 107th out of 175 territories in the ITU's 
ICT Development Index and during the period under review, mobile penetration was on an upward 
trend, while fixed -line penetration remained largely stable.  
4.275.   We can also see that tourism is viewed as central to th e Philippines' social and economic 
development: in 2016, the sector contributed 8.6% to GDP and 12.8% to employment.  
4.276.   The Philippines ranks 99th in the World Bank's ease of doing business index for 2017 
(up from 134th place in 2012) and has introduced refor ms, including reforms to counter corruption 
in its customs services, thereby significantly reducing clearance times.  
4.277.   In closing, Honduras congratulates the Philippines on the significant progress made during 
the review period and wishes the country every s uccess; we would also like to take this 
opportunity to welcome the Ambassador  Designate to the WTO, Manuel  Teehankee.  
CAMBODIA  
4.278.   Cambodia associates itself with the statement made by Thailand on behalf of the ASEAN.  
4.279.   My delegation congratulates the Philippine s for maintaining the annual GDP growth rate at 
an average of about 6% since its last TPR. We also appreciate the Philippines for putting efforts in 
promoting its trade and investment policies to be more open, transparent and competitive. 
Adoption of Compe tition Act along with an establishment of its authority during the review period 
is an example that the Philippines puts its commitment to secure the business environment.  
4.280.   We commend the Philippines for being an active and important member of ASEAN. We als o 
commend the Philippines for its commitment in the WTO by participating in the WTO negotiations 
and maintaining this rule -based multilateral trading system by ratifying the Trade Facilitation 
Agreement as well as fulfilling its notification obligations.  
4.281.   In the context of bilateral relations, Cambodia and the Philippines official diplomatic 
relation was established since 1957 and recently further enhanced by the signing of cooperation 
pacts in four areas: labour, sports, combating transnational crimes and t ourism during the State 
Visit of President Rodrigo R. Duterte to Cambodia in December 2016.  
4.282.   People -to-people relations are also going strong. The world well -known heritage province 
of Siem Reap and Manila are connected by a direct flight operated by Philip pine carrier Cebu Pacific 
Air. Cambodia received 108,032 Filipino tourists in 2016 and is also home to more than 6,000 
Filipino employed in the sectors of engineering, accounting, banking, business consulting, 
education, arts and entertainment.  
4.283.   My delegati on hopes our two countries will expand trade and investment as results of 
conversations either through bilateral, regional or other fora to explore more opportunities to 
promote the mutual and reciprocal trade.  
4.284.   My delegation wishes the Philippines a succes sful 5th TPR. WT/TPR/M/368 • The Philippines  
 
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  SWITZERLAND  
4.285.   It is difficult not to be impressed by the economic indicators of the Philippines which almost 
all point to a vibrant and robust economy. Economic growth is strong and persistently so. 
Unemployment has been on a declining path as has been inflation in spite of a closing output gap. 
Fiscal policy has been guided by prudence and public debt is comparably low. The balance of 
payments has undergone some changes. The current account surplus has given way to a slight 
deficit. But this is  in part due to a scaling up of investment which will benefit the economy in the 
long run.  
4.286.   Indeed, the improvement of the infrastructure will be key for the future economic 
performance of the country. Few economies in the world are faced with the everyday challenges of 
interconnecting 7000 islands. The unusual geographic situation of the country means that its 
economic operators are widely dispersed. They have to make an extra effort to engage with their 
business partners. In any event, all of the recent ec onomic developments are likely to help the 
Philippines in its struggle to alleviate the adverse effects of strikingly unequal income distribution.  
4.287.   The positive outcome of a carefully calibrated economic policy mix is not only contributing 
to the reduction of poverty inside the country. Whilst creating a favourable enabling environment 
for domestic business, the Philippines has not lost sight of the global picture. We get a sense that 
the Philippines has utilized the success of its tenacious reform efforts a s a bedrock from which to 
conduct an active and constructive trade policy.  
4.288.   Switzerland highly appreciates the multi -faceted contributions the Philippine delegation is 
making at various levels and in a variety of bodies here at the WTO. The Philippines has rightly 
been aware of the multitude of extra difficulties MSMEs have to come to terms with in their 
endeavour to access global markets. Difficulties bigger companies either do not have or overcome 
more easily on account of their resources. Switzerland will  continue to support the MSMEs initiative 
and display the flexibility needed to advance the cause of the smaller enterprises as they strive to 
maximize their trade potential.  
4.289.   Having said that, Switzerland would like to encourage the Philippines to become b etter 
acquainted with the workings of an open market for public procurement. Government procurement 
makes up a sizeable part of the Philippines ' economy. There are a great many efficiency gains to 
be made by bringing a usually opaque market into line with the best practices of a modern and 
outward -looking economy. These gains would not only give public finances more breathing space 
but also ensure a better allocation of resources when it comes to the tremendous task of 
improving the country 's infrastructure . A good way to start for the Philippines would be to become 
an observer to the Agreement on Government Procurement.  
4.290.   One development, which will certainly enhance the competitiveness of all parties involved, 
is the free trade agreement which was concluded between the Philippines and the European Free 
Trade Association (EFTA) in 2016. The agreement is about to enter into force. It is broad -based 
and covers trade in goods, services, investment, competition policy and aspects of the protection 
of intellectual property rights and government procurement.  
4.291.   In concluding, I would like to wish the Philippine delegation a fruitful continuation of its 
Trade Policy Review.  
URUGUAY  
4.292.   Uruguay maintains friendly and constructive relations with the Philippines in the various 
spheres covered by our bilateral relationship, which includes not only policy, the economy and 
trade, but  also cooperation and culture.  
4.293.   Since the Philippines' last trade policy review in 2012, political and trade relations between 
our two countries have gr own stronger.  
4.294.   Uruguay's open trade strategy in the interest of establishing and developing longer -lasting, 
more productive trade relations, has led us to engage even more with ASEAN member countries 
including the Philippines.  WT/TPR/M/368 • The Philippines  
 
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  4.295.   In September  2017, a health mi ssion from the Philippines visited Uruguay in order to study 
the possibility of opening the Philippine market to Uruguayan citrus fruits.  
4.296.   Additionally, Uruguay and the Philippines have deepened their bilateral relations through 
the Agricultural Cooperation , Exchange and Promotion Agreement signed by the Department of 
Agriculture of the Philippines and the Ministry of Livestock, Agriculture and Fisheries of Uruguay.  
4.297.   Trade between Uruguay and the Philippines has remained steady over recent years.  
4.298.   Uruguay's ch ief exports are milk and dairy products, fur  skins and manufactures thereof, 
hides and skins, wood and wood charcoal. Most imports into Uruguay from the Philippines are in 
the following product categories: man -made filaments, edible fruit and nuts and citr us fruits, and 
machines and mechanical appliances.  
4.299.   Uruguay would like to draw attention to the Philippine Development Plan and the 
Investment Priorities Plan, which aim to expand economic opportunities in the industry and 
services sectors and to encourage investments in targeted areas thus providing inclusive growth 
and spreading economic opportunities to a broader segment of the population, especially 
micro,  small and medium enterprises (MSMEs), women, young people and vulnerable groups.  
4.300.   In particular, Uru guay welcomes action to enhance the participation of MSMEs in the 
Philippine economy through the implementation of the Go Negosyo Act. Designed to strengthen 
MSMEs' development and boost job creation, the Act was signed into law on 15  July 2014 and 
entered  into force on 13  January  2015, creating business centres in cities and municipalities to 
provide accessible services for MSMEs and facilitate hassle -free transactions.  
4.301.   Uruguay commends the Philippines for its work at the Coordinating Committee for the 
Informal Working Group on MSMEs, and encourages the Philippines to continue to play an active 
role in favour of a positive outcome in that regard.  
4.302.   Finally, the delegation of Uruguay reaffirms its interest in our two countries continuing to 
work towards a posi tive result at MC12 and in protecting the multilateral trading system based on 
predictable, transparent and balanced rules.  
4.303.   Uruguay wishes the Philippines every success  in its fifth Trade Policy R eview.  
PAKISTAN  
4.304.   Pakistan and Philippines enjoy very cordial bilateral relations. However, bilateral trade does 
not reflect the true potential existing b etween our two countries, and bilateral trade can definitely 
be enhanced. During Fiscal Year 2017, bilateral trade stood at around US$150 million. Pakistan 
exported  goods worth US$134.87 million to Philippines while  we imported goods worth 
US$16.63  million.  
4.305.   Pakistan is impressed with Philippines economic growth, which has, since its last Trade 
Policy Review in 2012, grown at an average annual rate of about 6%. GDP pe r capita in 2016 was 
some US$2,950, up from US$2,580 in 2012. The poverty rate declined from 25.2% in 2012 to 
21.6% in 2015.  
4.306.   Pakistan has noted that exports Philippines electronics and electrical goods recorded 
significant growth during the review period,  accounting for 25.6% of total exports in 2016, up from 
9.6% in 2011. Exports of services and remittances have also experienced fast growth. Imports of 
manufactured goods have increased significantly, from 50% of total imports in 2011 to 76% in 
2016. The U nited States, the European Union, Japan, China, and ASEAN countries are the 
Philippines ' main trading partners.  
4.307.   During the review period, the Government conservativ e fiscal policy has resulted in  the 
decrease of its debt to GDP ratio  from 41% in 2012 to 35% in 2016. As regards monetary policy, 
the central bank maintains an inflation -targeting policy, with the current target set at 3%.  WT/TPR/M/368 • The Philippines  
 
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  4.308.   Pakistan commends that over the review period, the Philippines recorded a strong inflow of 
foreign d irect investment (FDI) which reached US$7.9 billion in 2016, up from US$1.9 billion in 
2011. The Netherlands, Australia, the United States, Japan, and Singapore were the major source 
countries of FDI. More than 60% of FDI was invested in the manufacturing sector.  
4.309.   The Philippines accepted the WTO Trade Facilitation Agreement on 27 October 2016; it has 
also submitted a notification regarding its Category A commitments. Furthermore, Philippines ' 
tariffs are ad valorem. The average applied MFN tariff is 7.6%, up from 6.4% in 2011.  
4.310.   Pakistan appreciates that Philippines passed its first Competition Act in 2015 and 
established a competition authority in 2016.  
4.311.   The legal framework on intellectual property rights has remained basically unchanged. The 
Bureau of Copy rights, established in 2013, is responsible for promoting awareness of IP rights and 
accreditation of organizations that collect royalties. Applications and registrations for most types of 
IP have grown strongly during the period under review.  
4.312.   Agriculture and forestry contributes around 10% to GDP. The Philippines ranks among the 
major world producers of bananas, coconuts, pineapples, and rice.  
4.313.   Pakistan has noted that Philippines is a net importer of energy and the cost of energy 
remains high, hindering th e development of other sectors. Th e Government action by issuing a 
National Renewable Energy Programme to encourage the development of rene wable energies is 
commendable.  
4.314.   Manufacturing contributes about 25% to GDP and employs some 8% of the labour force. 
The strongly growing sector mainly comprises: food and beverages, furniture and fixtures, 
electronics, chemicals, petroleum refining, and motor vehicles. Most industries supply mainly the 
domestic market, except the electronics industry whose products are mo stly for export.  
4.315.   The services sector contributes some 51% to GDP; the share of financial services remained 
at some 10% of GDP during the review period. Up to 100% foreign ownership of banks has been 
allowed since June 2014. National treatment has been appl ied, in terms of regulatory 
requirements, to foreign -owned insurance companies since mid -2013.  
4.316.   The telecommunications sector in the Philippines is private -sector driven and dominated by 
two companies.  
4.317.   Foreign ownership in telecommunications is not allowed  to exceed 40%. Tourism is 
considered to be central to the Philippines ' social and economic development: in 2016, the sector 
contributed 8.6% to GDP and 12.8% to employment. During the review period, the Government 
adopted a number of visa facilitation mea sures to boost tourist arrivals; it also took steps to 
address infrastructure problems that affect the sector.  
4.318.   Pakistan appreciates the efforts of Philippines Mission in Geneva towards the upholding of 
the principles of multilateralism and the system. We are also appreciative of Philippines efforts in 
creating an Informal Working Group on MSMES at the WTO that is open to all members which will 
continue striving for a multilateral outcome aimed at establishing a formal work programme for 
MSMEs at the next M inisterial Conference.  
4.319.   In the end, we want to wish Philippines a very successful and a fruitful TPR.  
  WT/TPR/M/368 • The Philippines  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF THE PHILIPPINES  AND ADDITIONAL 
COMMENTS  
5.1.  I am pleased to see you all again today, Ambassador Juan Carlos Go nzález and all  the 
delegations.  On behalf of our Chief WTO Negotiator and Trade Minister, Ramon M. Lopez, let me 
take this opportunity to reiterate the great i mportance we attach to the TPR M echanism. It has 
been a truly valuable experience and exercise for the Philippines. This, in no sma ll measure, is due 
to the extra ordinary dedication and competence of the WTO Secretariat and the very active 
engagement of all Philippine governmen t agencies in the whole process,  and in the insightful 
words of our discussant, A mbassador Stephen de Boer, who set the tone for our very productive 
discussions last Monday.  
5.2.  We thank M embers for two things. First, the generosity by which you have acknowledged the 
strong growth of the Philippine economy during the review period (2012 -2017), the significant 
policy reforms undertaken  — involving the amendment of decades -old laws and regulations, and 
the contributions o f the Philippines as an active M ember of the WTO. We highlight that these 
achievements would have been without meaning, had  these not been felt by ordinary Filipinos. But 
accompanying the highest GDP growth of the Philippines in over four decades is a remarkable 
decline in unemployment and in poverty incidence. We shall , however , not rest until each and 
everyone benefits from growth.  
5.3.  Second, we are equally appreciative of your questions, requests for clarification, comments 
and suggestions. For instance, one Member said "Few economies in the world are faced with the 
everyday challenges of interconnecting 7,000 islands. The unus ual geographic situation of the 
country means that its economic operators are widely dispersed. They have to make an extra 
effort to enga ge with their business partners ". This comment highlights that what we have taken 
as a given, as we  — our people, our M icro, Small and Medium Enterprises (which accounts for 99% 
of all our businesses) day -in-and-day-out have to first worry about how the materials we need and 
the products we sell can get to the main islands  — even before we are able to think o f trading with  
the rest of the w orld. This comment, from a landlocked country, on appreciating the challenges 
faced by an archipelago, highlights the value of the TPR as a mechanism for listening, sharing, 
discussing, and engaging in a dialogue  — valuing each one 's pers pectives. We all have something 
to contribute. For our 5th Trade Policy Review, the Secretariat report, and M embers ' contributions 
allowed us to internally reflect on ways to further strengthen the link between trade openness and 
inclusive growth. In addit ion to the opportunity for our delegation to be here with you, it is our 
internal discussions in Manila  — and our sleepless coordination meetings over the past two days, 
which have also proven to be extremely productive.  
5.4.  Members ' comments have been very f ocused, allowing us to group these and provide a 
general response per cluster. The m ajority of the questions referring to policy reforms go beyond 
WTO obligations and commitments  — but are nevertheless consistent with the Philippines ' 
initiatives, as w e have shared in our Opening s tatement and as I will briefly recall shortly. The 
Administration of President Rodrigo Duterte has not only built on reform initiati ves of previous 
Administrations,  but has been accelerating  and deepening reforms towards i nclusive  growth . 
5.5.  Allow me now to comment on your questions and clarifications.  
 First, on allowing further foreign participation in economic activities – The Philipp ines is 
already an open economy  with foreign investments allowed in a broad range of activities. 
Sectors with restrictions by way of administrative regul ations, or legislations, or through  
the Constitution are transparently listed in a Foreign Investment Negative List.  
 
In this particu lar area, we have embarked on a three -pronged reform approach:  
 
o A: Limitations which are based on Administrative regu lations are being addressed 
through  the issuance by the President of Memor andum Order No. 16 (in 
November  2017) directing government agenci es to take immediate steps to lift or ease 
existing restrictions on foreign participation in the eight areas I mentioned last 
Monday.  
 
But allow me to highlight today that there are two key priority investment areas or 
activities where equity restriction i s being reviewed relevant to the success of the WT/TPR/M/368 • The Philippines  
 
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  Government 's infrastructure p rogram me (or the "Build, Build, Build " Program me), 
namely : (1) the review on contracts for the construction and repair of locally -funded 
public works ; and (2) on public services, except activities and systems that are 
recognized as public utilities. By giving priority to these two areas, we look forward to 
creating a more liberal investment environment where our "Build, Build, Build " 
Program me would be able to Deliver, Deliver, Deliver at the soonest possible time.  
 
o B: In relation to public u tilities, we note that most of M embers ' comments on foreign 
equity restrictions focused on the following sectors: transportation, communication, 
electricit y, and water serv ices. We reiterate that at the l egislative front, our Congress 
has placed utmost priority in amending Commonwealth Act No. 146 otherwise known 
as the Public Service Act (PSA)  — a law which was e nacted in 1936 (or more than 
80 years ago) an d which defined what sectors are considered as Public Utilities. This is 
very important as this amendment based on our Con stitution reserves  Public Utilities 
only for Filipinos , that is foreign equity on public utilities are not to exceed 40% .  
 
Through this a mendment, our Congress will be able to provide a clear definition of 
public utility to cover only three sectors: distribution of electricity; transmission of 
electricity and water pipeline distributio n system or sewerage pipeline. This means that 
all other sectors  in transportation (land, water and air), communication, electricity, 
and water services  — will be opened to even 100% foreign ownership.  
 
o And C, along parallel lines, a Constitutional Review Committee has been created by the 
President with the urgent task of reviewing, among others, the economic provisions 
which at the present reserves remaining certain activities to Filipino citizens. The 
intention is to create a window for these activities to be liberalized thru legislation.  
 
 Second  cluste r of your comments, the Philippines n oted the encouragement of some 
Members to join or to be an Observer in the plurilateral Government Procurement 
Agreement (GPA). Even as we are still currently studying and considering Observership, 
the Philippines is continuously building our capacity for understanding the GPA. Our 
officials have actively participated in regional and WTO -based workshops on the GPA; and,  
this April, we will host in Manila the first national workshop on government procurement 
through the a ssistance of the WTO Secretariat.  
 
 Third, on intellectual property rights, through the member agencies of the National 
Committee on Intellectual Property Rights, the Philippines continues to adopt holistic and 
concerted efforts to strengthen IP protection  and enforcement, while at the same time 
maintaining the delicate balance between the rights of IP holders and the public in general.  
 
The Philippines will sustain the momentum of intellectual property rights enforcement 
reforms, and have made great strid es as we continue to lead efforts to improve  IPR 
enforcement in the ASEAN (w e are Asean 's Country -Champion for IPR Enforcement; and 
we Chair the ASEAN Network of IPR Enforcement Experts). Now, to address on -line and 
digital piracy, the Philippines amended its intellectual property law in 2013 to provide for 
the liability of entities benefitting from copyright infringement, such as on -line 
intermediaries. A review of the IP Code is also currently being undertaken, including a 
proposal for a "notice and taked own" provision to provide expeditious remedies against 
on-line infringement.  
 
And, to facilitate the expeditious resolution and adjudication of intellectual property rights 
cases, we have been regularly holding roundtable discussions with judges of the Sp ecial 
Commercial Courts and Justices of the Court of Appeals and the Supreme Court. In 
partnership with the United States Agency for International Development (USAID) and the 
American Bar Association -Rule of Law Initiative, the "Manual on Investigation and  
Prosecution of IP Case s" has been revised and updated  in order to streamline the 
investigation and prosecution of IP cases by law enforcement agencies, and ensure 
effective IPR enforcement.  
 
 Fourth , on tariffs, we would like to clarify that there were no  major changes on tariff r ates 
during the review period. From 2011 to 2017, the main MFN tariff policy instruments 
issued were Executive Order No. 61 series of 2011  — which laid down the MFN tariff WT/TPR/M/368 • The Philippines  
 
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  structure from 2011 to 2016,  and Executive Order No. 20 series of 2017  — which set the 
MFN tariff structure from 2017 to 2020. The Philippines would like to emphasize that the 
reported increase in average applied MFN tariff is mainly attributed to an increase in the 
number of our tar iff lines, from 8,299 in 2011 to 9,599 in 2014 and to 10,813 in 2017, as 
a result of the transpositions of the Harmonized System (HS) and the ASEAN Harmonized 
Tariff Nomenclature (AHTN) from 2007 to 2012 to 2017. An example of this  is the increase 
in tarif f lines of HS Chapter 87 from 331 lines in 2011 to 932 lines in 2017.  
 
 Fifth, the Philippines also notes the views on agriculture, particularly on compliance with 
notification obligations, on rice tariffication, on valuation, and on meat handling 
requireme nts. Let me comment on each:  
 
o We recently submitted (and these were already published by the WTO) all our  
domestic support notifications,  and all our agriculture notification obligations have 
been settled covering the period up to 2015. We will continue to  ensure that our 
measures are consistent with obligations and all notifications are updated.  
 
o On the tariffication of the rice quantitative restrictions through the amendment of 
the Agricultural Tariffication Act, I wish to highlight that it is a priority of the 
Philippines.  
 
o On meat handling requirements, let me assure Members that the Philippine s 
adopted technical regulations anchored on internationally accepted standards and 
verifiable scientific stu dies. It is therefore worth noting that the World Organization 
for Animal Health has recognized the Philippines as an FMD -free country not 
practicin g vaccination and we are committed to protect our consumers and 
livestock sector, thus risk assessment measures are important.  
 
o The Philippines also strictly observes the WTO Customs Valuation Agreement and 
does not apply reference prices. If there are te st values that the Bureau of 
Customs publishes, these are used strictly as a risk management tool. Test value 
range shall be used as basis to cast doubt as to the truthfulness or accuracy of a 
given value declaration, which in turn may trigger a valuation query on the 
applicability of the method of valuation used by the importer.  It should be made 
clear that the Bureau of Customs does not use the values in their database as 
substitute for the declared transaction values. The value information database is 
used merely for testing the validity of an importer 's value declaration. Should an 
importer disagree with the assessed value, there is a clear process for filing a 
protest against the valuation to the Bureau of Customs Commissioner as provided 
under the Cust oms Modernization and Tariff Act.  
 
But having clarifi ed this, let me further inform M embers that our relevant 
authorities are closely coordinating with stakeholders  — particularly meat 
importers, to promote a better understanding of the process and ensure efficient 
flow of products.  
 
5.6.  Allow us to share that the Philippines will continue to improve the business environment, 
foster transparency and eliminate laws that place a heavy r egulatory burden on businesses.  To cut 
red tape, the "Project Repeal " was launched in March 2016 and, to date, three repeal days have 
been conducted where an aggregate of 4,837 policy issuances were reviewed with a view to 
repealing outdated rules and therefore reducing the time and cost of doing business.  
5.7.  Moreover, an enh anced automated National Single Window called the TradeNet system is 
being prepared for live operation by the middl e of 2018. TradeNet will allow traders to lodge 
information and documents to fulfil all import, export and transit -related regulatory require ments.  
5.8.  But what is generating excitement as it will no doubt prove to be a game -changer, is that 
both Houses of Congress have passed the Expanded Anti -Red Tape Act and this is now with the 
Office of the President for consideration and signing. This bill co vers all agencies  — local and 
national  — issuing permits and licences,  and mandates specific shortened processing periods for 
categories of permits and license. Failure to approve within the prescribed timelines will mean 
automatic approval; and, for the e rring official, a 6-month suspension without pay on first offense, WT/TPR/M/368 • The Philippines  
 
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  and, on second offense, disqualification from public office, forfeiture of retireme nt benefits, fine of 
between PHP 500,000 (or about US$10,000) to PHP 2,000,000, and imprisonment of one to  six 
years.  
5.9.  Allow me to summarize our responses at this po int by highlighting that we are 
(1) accelerating and deepening policy reforms started in past administrations  towards greater 
liberalization;  (2) enhancing the continuous effective implementation o f oblig ations and 
enforcement of rules;  and (3) ensuring an environment where it is easy to do business, devoid of 
any red -tape.  
5.10.   Once again, we would like to thank Members not only for recognizing the tremendous 
progress achieved by the Philippines since the last TPR; but also your constructive insights and 
optimism on the great  opportunities that lie ahead.  
5.11.   We take great pride in the explicit recognition by M embers that Philippines is a responsib le, 
responsive, and active WTO M ember, with significant cont ributions in keeping the WTO relevant 
and effective, not just in advocating for a development -oriented MSME -centered agenda but also 
by keeping our economy open and resisting protectionist and inward looking policies.  
5.12.   The Philippines is the first Member t o adopt the alternative timeline for the TPR and we 
continual ly benefit immensely from this.  It has been a very enriching experience for us to answer 
the 333 ques tions received even before our d elegation arrived here. On the additional questions 
receiv ed, we will be responding soon.  I wish to thank everyone for your interest and participation 
today and last Monday; and especially for the warm welcome given to me and the Philippine 
delegation  whose hard work (by each and every member government agency) made possible the 
positive presentation  today .  
5.13.   Allow me to also take th is opportunity to thank our out going TPRB Chairperson, Ambassador  
Juan Carlos Gonzá lez, for his very capable chairmanship of our TPR, and for successfully heading 
this Committee in the past  year. We owe a deep amount of gratitude to Colombia , especially as 
Ambassador Gonzá lez' compatriot, Ambassador Eduardo Mu ñoz Gómez , chaired the meeting 
during the Philippines ' Fourth TPR in 2012.  
5.14.   We are likewise grateful fo r the warm welcome extended by Members to our 
Ambassador -designate, Ambassador Manuel Teehankee. In behalf of the Government of the 
Republic of the Philippines, we reiterate our commitment to continue to be activel y engaged in 
ensuring that, through  the WTO, we realize a sustainably gro wing global economy where no one is 
left behind.  
5.15.   Thank you.  
DISCUSSANT  
5.16.   Let me begin by thanking Undersecretary Rodolfo and his team for the detailed statement 
delivered this morning and for following -up on the points raised on Day 1.  
5.17.   I also listened closely to the Members that took the floor on Monday and I thank them for 
enhancing the trade policy review process and for  their substantive and thoughtful contributions. 
With 34 interventions and 330 written questions, WTO Members have de monstrated a keen 
interest in the economic and trade regimes of the Philippines, while simultaneously supporting the 
transparency function of the WTO. I trust this process has been useful for the Philippines and I 
hope this has provided the delegation here  with some concrete ideas to bring back to Manila.  
5.18.   I appreciate the opportunity to share a few reflections today before we conclude the 
Philippines 5th Trade Policy Review.  
5.19.   One cross -cutting theme that came out clearly for me throughout the course of Mon day was 
the Philippines ' commitment to institutions, both in terms of their participation in regional 
organization s such as APEC and ASEAN, as well as here at the WTO. And the Philippines ' 
commitment to the WTO is demonstrated concretely this week through their participation in this WT/TPR/M/368 • The Philippines  
 
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  TPR process, including the adoption of the alternative timelines and the timely provision of 
responses to Members advanced written questions.  
5.20.   A second common theme was the Philippines ' strong economic performance over the last 
few years, registering strong GDP growth combined with poverty and debt reduction. Members 
also praised the Philippines ' robust reform agenda – including in areas such as tax, customs, and 
competition policy.  
5.21.   At the same time, however, there were a number of areas commonly identified by Members 
as needing further reform by the Philippines. Per mit me to briefly outline these.   
5.22.   First, as I mentioned on Monday, agriculture policy continues to be a challenge for the 
Philippines. Members pointed to a range of trade policy issues to be addressed, including but not 
limited to: up -to-date notifications for domestic support and export subsidies, high tariff rates, 
particularly for rice, corn, and sugar; the use of reference  prices; issues with TRQ administration; 
certain export restrictions; and the elimination of quantitative restrictions and the tariffication of 
rice. Traders also continue to struggle with the Philippines ' SPS regime.  
5.23.   Government procurement was highlighte d by a large number of delegations as an area that 
continues to be heavily restricted to foreign participation. I join other Members in encouraging the 
Philippines to consider becoming an observer to the GPA. And I am pleased that Undersecretary 
Rodolfo ha s addressed this in his remarks this morning.  
5.24.   Finally, despite the reforms undertaken during the review period, the Philippines ' ability to 
attract investment from abroad remains constrained by restrictions to foreign participation in many 
sectors. It is encouraging to hear plans to further liberalize foreign direct investment, as this could 
assist the Philippines in raising the necessary capital to address infrastructure challenges.  
5.25.   Undersecretary Rodolfo has provided some details this morning elaborating  on the steps the 
administration plans to take to address these and other issues and I am sure Members will 
continue to closely monitor developments in these areas. I encourage the Philippines to stay on 
the path of reform and progressive market opening in  the coming years.  
5.26.   The Philippines has made great steps forward during the period under review and I look 
forward to seeing the progress achi eved by the time of their next Trade Policy R eview.  
5.27.   In conclusion, I would like to congratulate t he Philippines on  a successful Trade Policy 
Review. It was an honour and a pleasu re serving as your discussant. Thank you.  
EUROPEAN  UNION  
5.28.   The EU noted the considerable inter est in the TPR of the Philippines and Members ' wide 
appreciation for its achievements in today 's cha llenging environment regarding the multilateral 
trading system. In particular, the EU acknowledges the Philippines strong commitment to this TPR 
and to the WTO in general.  
5.29.   From the proceedings of these two days, the EU reiterates its appreciation for the r eforms 
taken since the last TPR in 2012, notably some of the legislation , including competition, customs, 
services, tax  and so on.  
5.30.   Moving forward, the EU encourages the Philippines to continue the reforms and hopes that 
the TPR comments from the EU and oth er trade partners will support further legislative and 
executive decisions that will facilitate and liberalize trade and investment. In particular, as also 
underlined by the majority of the Members who took the floor on Monday, the EU encourages the 
Philip pines to consider revising its investment restrictions as proposed by the President and 
ongoing initiatives in Congress (such as amending the Public Services Act); and to further 
liberalize and rationalize procurement rules also by considering joining the GPA. We take good 
note of the statement made this morning in regard of many of those aspects just highlighted.  WT/TPR/M/368 • The Philippines  
 
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  5.31.   The EU would also like to thank very much the delegation of the Philippines for the 
responses received to our advance questions and for the addit ional information provided on 
Monday and today regarding the questions we put forward on the first day in our statement.  
5.32.   However, as some of the EU initial questions were only partially replied and few of them still 
outstanding, the EU has submitted some  follow -up questions covering notably investment regime, 
customs procedures and other charges affecting imports, standards and technical regulations  and 
government procurement.  We look forward to receiving detailed replies and replies to our 
unanswered que stions in due time.  
5.33.   The EU is confident that this TPR  will help the Philippines in continuing its reforms ' process, 
while respecting its international commitments.  
5.34.   Finally, we would like to thank the whole delegation of the Philippines for their construct ive 
participation in this exercise. And, as a final note, thank you also to you, Mr. Chairman, as this is 
your last meeting, for all the work you have done during this past year.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
5.35.   Let me fir st to thank the departing Chair , Ambassador Mr. Juan Carlos Gonzá lez, for the 
leadership on chairing the Trade Policy Review Body over the past 12 months.  
5.36.   My delegation wishes to thank the delegation of the Philippines for its contribution to this 
morning 's meeting and the exercise taking place this week which has been under preparation for 
several months.  
5.37.   We also express our appreciation and satisfaction of the oral and written responses provided 
by the Philippines delegatio n, especially on the topics of i ntellectual property right and government 
procurement.  
5.38.   We acknowledge that many M embers reaffirmed the active role played by the Philippines in 
our col lective work to promote MSMES. As an old saying goes , action speaks l ouder than words. 
We encourage M embe rs to work together to translate  words into actions to deliver meaningful 
results for strengthen ing MSMEs ' capability on Global Trade.  
5.39.   My delegation will also actively participate in the workshop - Consideration of how technical 
assistance and capacity bui lding initiatives could take into account the trade needs and challenges 
of MSMEs which will be co-chaired by El Salvador and Philippines on 2 October.  
5.40.   My delegation also point s out that fossil fuel subsidy reform will be an area of increasing 
impor tance for Members in the future. W e echo the New Zealand 's statement last Monday and 
recogniz e the Philippines has completed an APEC pee r review in 2016 in this regard . 
5.41.   We hope that this Trade Policy Review will have been an opportunity for the Philippines  to 
gather useful comments, and for the other Members to better understand its trade policy and 
measures . 
5.42.   Today is the end of the trade policy review but to morrow will be the beginning of  moving 
towards reform s in trade and economy liberaliz ation.  
5.43.   Finally, we h ope H.E. Dr. Ceferino S. Rodolfo and his delegation a safe trip to Manila.  
UNITED  STATES  
5.44.   On behalf of the United States I would like to thank the members of the Philippines 
delegation for their time and effort that they invested in preparing for and carryin g out this trade 
policy review. The United States also appreciates the work carried out by the Secretariat in 
preparing the reports which made this review possible.  WT/TPR/M/368 • The Philippines  
 
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  5.45.   We also appreciate the efforts that the Philippines made in dedicating the time to providin g 
written responses to the many questions we have posed during this review. And today I only have 
a few follow -up questions.  
5.46.   Again, we express our appreciation for all of the hard work that went into this review and 
congratulate the Philippines on a succes sful TPR.  
H.E.  DR CEFERINO  RODOLFO  (HEAD  OF DELEGATION)  
5.47.   We wholeheartedly  thank Ambassador de Boer for again a very insightful statement along 
with the statement s of the other Members who have spoken today.  
5.48.   We note tha t there are follow -up questions;  we will closely coordinate with the relevant 
delegations and with the WTO Secretariat in providing additional replies in the level of detail being 
requested. Thank you.  
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This fifth Trade Policy Review of the Philippi nes has offered us an excellent opportunity to 
deepen our understanding of the trade, economic, and investment policies of the Philippines. More 
than 300 questions from 22 Members were submitted to the Philippines before the meeting, which 
underlines the i mportance Members attached to this Review. I would like to thank the delegation 
of the Philippines, led by H.E. Dr. Ceferino Rodolfo, Undersecretary of Trade and Industry, the 
discussant, H.E. Ambassador Stephen de Boer of Canada, and the 34 delegations th at took the 
floor for their valuable contributions to this Review.  
6.2.  Members praised the Philippines for its strong commitment to preserve and strengthen the 
multilateral trading system, and its active role to advance the negotiations in areas such as 
fisheries subsidies. Members also recognized the Philippines ' contribution in promoting the work in 
the WTO on Micro, Small and Medium Enterprises (MSMEs). Many Members welcomed the 
Philippines ' ratification of the Trade Facilitation Agreement and the related n otifications of Category 
A, B and C commitments, as well as the implementation of its ITA expansion commitments. Some 
Members also expressed appreciation that the Philippines had made use of the alternative 
timelines for its TPR, thus enhancing th e transpa rency of the process.  
6.3.  Members commended the Philippines ' impressive economic performan ce since its last TPR in 
2012. Real GDP had grown at an average annual rate of about 6% in 2012 -17, per -capita GDP had 
increased, and poverty declined. Trade played an im portant role in this review period, which was 
marked by strong growth of manufactured exports, in particular of electronics and electrical goods, 
as well as by buoyant exports of services. Several Members observed that, despite increased 
infrastructure inv estment, substantial gaps remained and foreign participation in infrastructure 
development was hindered by FDI restrictions, notably in utility projects.  
6.4.  Members applauded the policy reforms undertaken by the Philippines during the review 
period, includin g in the area of investment, customs, competition, intellectual property, and 
government procurement. Nonetheless, it was also noted that further domestic reforms in areas 
such as investment and government procurement were needed to enhance the competitive ness of 
the economy and attract foreign investment. Some Members raised concerns over market access 
conditions for foreign suppliers in public procurement and encouraged the Philippines to improve 
them. Some Members encouraged the Philippines to consider j oining the WTO Plurilateral 
Agreement on Government Procurement.  
6.5.  Members welcomed the improvements in the Philippines ' foreign investment regime, such as 
allowing 100% foreign ownership in the banking sector and liberalizing access to certain 
professional  services. However, as indicated in numerous advance written questions and 
interventions, caps on foreign direct investment in some sectors or activities remained a concern. 
Questions were also raised regarding what some Members considered to be high capit al 
requirements for foreign investment in the retail business. I am pleased to learn from Dr. Rodolfo 's 
introductory statement that further reforms of the FDI regime are underway, which  he also 
expanded in detail today. Government agencies have been direct ed to take immediate steps to lift 
or ease existing restrictions in 8 sectors or activities, including the practice of particular 
professions, public works, certain public services, and retail trade. Furthermore, an amendment of 
the legislation regarding F DI in public utilities is under consideration and a Constitutional Review 
Commission has been set up to address the constitutional limitations on FDI.  
6.6.  Members welcomed the implementation of the Customs Modernization and Tariff Act aimed at 
streamlining cu stoms rules and procedures. Yet, several Members expressed reservations 
regarding the pre -shipment inspection requirements. Some Members recognized the efforts made 
to combat corruption in customs services. However, it was noted that there was room for 
improvement of the business environment, including by reducing the complexity of the 
permit/licens ing regime in certain sectors.  
6.7.  Members noted the increase in the average applied MFN tariff rate from 6.4% to 7.6% during 
the review period; the high share of nu isance tariffs of about 14.9% of tariff lines in 2017; and the 
increased share of tariff peaks (8.5%). Some Members invited the Philippines to consider reducing 
high tariffs, particularly on agricultural products and automobiles. Some Members encouraged th e WT/TPR/M/368 • The Philippines  
 
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  Philippines to expand the coverage of its tariff binding commitments curre ntly at 63.7% of tariff 
lines.  
6.8.  Members welcomed the improvement of intellectual property rights (IPRs) protection, 
including the establishment of the Bureau of Copyrights. However , several Members raised 
concerns regarding IPR enforcement measures including those against counterfeit pharmaceuticals 
and othe r products, and online piracy.  
6.9.  A number of Members sought further clarification from the Philippines concerning the general 
direction of the agricultural reform process, in particular with regard to steps taken to reform the 
import regime and the high level of support for rice. The representative of the Philippines stated 
that passage of legislation to remove the quantitative res trictions on rice was a priority. In the 
meantime, the reduced MFN tariff rates on rice and other agricultural products had been extended. 
Other matters of concern raised by Members included use of reference prices in assessing customs 
duties on agricultur al products, and export restrict ions on rice, corn and sugar.  
6.10.   While Members acknowledged the recent reforms of the food safety regime, a number of 
SPS related concerns were raised inter alia on: regulations for handling imported meat and issues 
in exportin g bovine meat for sale on wet markets; SPS requirements that were not aligned with 
international standards; accreditation of export establishments; and certain labelling requirements 
that we re considered to be excessive.  
6.11.   On services, the delegation of the  Philippines informed Members that it had permitted 
international relays through co -loading of shipments on foreign vessels to enhance competition in 
maritime transport. The Philippines was encouraged to liberalize its regime reserving certain cargo 
to be shipped by Philippines ' flag vessels, and also to review foreign equity limit ations in 
telecommunications.  
6.12.   While appreciating that the Philippines had submitted more than 300 notifications during the 
review period, Members encouraged it to submit outstanding notifications, notably up -to-date 
notifications on agriculture.  
6.13.   In conclusion, Members welcomed the Philippines ' unwavering commitment to the 
multilateral trading system and the trade policy reforms undertaken since the last Review. At the 
same time, while recognizing the advances made in the following areas, Members noted that 
several concerns remain regarding rest rictions on FDI, certain SPS measures, and the high level of 
support for rice. I am certain that the Philippines will reflect on the many constructive comments 
that it h as received during this Review.  I would like to thank again the Philippines delegation for its 
commitment to this exercise and look forward to receiving the answers to any outstanding 
questions within the next month, at which point this Review will be successfully concluded.  
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  7  ELECTION OF A NEW CH AIRPERSON OF THE TPR B 
7.1.  As indicated in my rema rks on Monday, we have a second agenda item for today. We now 
move to the election of the Chairperson for the TPRB for 2018. At its meeting on 7 March 2018, 
the General Council noted the consensus on the slate of names of Chairpersons for WTO bodies, 
including the Permanent Representative of the Republic of Benin, H.E. Ambassador Eloi  Laourou  as 
the Chairperson of the Trade Policy Review Body.  
7.2.  In accordance with the Rules of Procedure of this body, I have the pleasure to propose that 
Members of the Trade Po licy Review Body elect, by acclamation, H.E. Ambassador Laourou  as the 
Chairperson for 2018.   
7.3.  It is so agreed [gavel]. Thank you. I would suggest that Members of the TPRB confirm their 
support for his election with a round of applause.  
7.4.  Now, I would like t o invite Ambassador Laourou to join me in the podium.  
7.5.  As I handover the gavel and wish Ambassador Laourou every success in the year ahead, I 
would like to thank Members for entrusting me with the work of the TPRB and allowing me to 
serve you in this capaci ty during the last 12 months. Please allow me to share some personal 
thoughts from this experience after the 15 TPRs covering the trade policies of 50 Members, 
counting EU Member States separately, that took place since May 2017.  
7.6.  During this period, I hav e witnessed the vitality of the TPRB as one of the backbones of the 
transparency pillar of this Organization at times when the negotiating and dispute settlement 
functions are facing some challenges. The high level participation of Members under review and  
their engagement throughout the process, the important number of delegations participating in all 
deliberations, and the dedication of every Ambassador that contributed to the meetings as 
discussants in their personal capacity attest to the commitment of Members to contribute to an 
open, transparent and predictable trading system through the very constructive peer review 
exercise embodied in the TPRM.  
7.7.  I wish to thank the Secretariat 's team for their support and the tremendous efforts they put 
into preparin g the reports that facilitate our work. As a former government representative involved 
in the day to day task of trade and investment promotion, I have found that the high quality of the 
information provided is very useful not just to policy makers and gov ernment officials, but also to 
any company or individual interested in understanding a new market and venturing into new 
businesses. As counting with timely and precise information has turned increasingly important to 
trade and invest, and access to inform ation has become ever easier through different IT platforms 
and networks, the TPRM offers an opportunity to bring the WTO closer to societies, not just as a 
tool for accountability, but also as a means to signal to individuals and companies where to find 
opportunities as Members indicate their aspirations and plans for the future.  
7.8.  As we look forward, there will be opportunities to continue to strengthen the TPRM as a 
transparency mechanism for the benefit of the Membership as a whole and the Members under 
review. For instance, the ongoing implementation of the on -line Questions and Answers system 
should facilitate and expedite the process. Also, the increasing number of reviews conducted under 
the alternative timeline, from 13% in 2016, to 33% in 2017, and 50% for all of 2018 will provide 
more time for Members to receive and analyse the answers. Furthermore, in 2018 , more 
informative follow up workshops will be conducted by the Secretariat at the request of the 
reviewed Members to undertake a deeper analysis  of the feedback received and further 
disseminate the outcome of the reviews. This is also an opportunity for developing countries to 
consider when assessing technical assistance and capacity building needs.  
7.9.  On the other hand, in some cases, as grouped rev iews provide for economies of scale for 
Members and the Secretariat, they also offer a challenge so as to not miss the opportunity for 
every Member to receive adequate feedback and to undergo effective follow up to the questions 
and answers provided. Also,  as the Amendment of the TPRM extending the review periods will 
enter into effect in 2019, the occasion of the presentation of the Trade Monitoring Reports should 
provide an opportunity for Members to make updates on relevant policy changes as they wish, a s 
it was agreed during the last Appraisal of the TPRM.  WT/TPR/M/368 • The Philippines  
 
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  7.10.   I would like again to sincerely thank everyone for your confidence and cooperation during 
the past year, and I now hand over to Ambassador Laourou .  
H.E.  MR. ELOI  LAOUROU  
7.11.   Good morning to everybody: Mr Chairman, dear friend and colleague, Ambassador 
González, "amigo mío "; Excellencies Ambassa dors, Permanent Representatives;  H.E. Dr. Ceferino 
Rodolfo, Head of the delegation of the Philippines, welcome to Geneva, you and your enti re 
delegation;  distinguished experts ; ladies and gentlemen.  
7.12.   Mr. Chairman, thank you sincerely for the kind words you extended to me, I appreciate this 
highly. Congratulation s to you also for the hard work you did during your mandate, which has 
been intense and fruitful.  We have just heard about the results and we are very appreciative to 
you for that.  
7.13.   Let me also seize this opportunity to express my deep and sincere gratitude to the WTO 
Members for the confidence they placed in me in electing me as the Chair of the TPRB for the year 
2018.  
7.14.   Finally, I would like to reiterate our congratulations to the Philippines for their successful 
TPR that has just been concluded. I wish good continuation and success to the Philippines in their 
efforts and initiative for promoting trade  and development.  
7.15.   With these words,  unless there is a request from the floor, I would like to  declare the 
meeting closed.  
7.16.   I look forward to seeing you all at our next meeting on 11 April when the TPRB will review 
Montenegro 's trade policies.  
__________