RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/O/PHL 
15 June 2005 
 
 (05-2512) 
Council for Trade in Services 
Special Session Original:   English 
 
 
  
THE PHILIPPINES  
 
Conditional Initial Offer
  
 
 The following initial offer h as been received from the dele gation of The Philippines on 
31 May 2005 with the request that it be circulated  to Members of the Council for Trade in Services. 
  
_______________ 
 
  1. Pursuant to paragraph 15 of the Ministerial Declaration of 14 November 2001, the Philippines 
is submitting its initial offer under the General Agr eement on Trade in Services (GATS) and in the 
context of the Doha Development Agenda (DDA). 
2. This initial offer is conditional upon: 
(a) the outcome of negotiations stipulated by the GATS on domestic regulation, and rule-
making, particularly on Article X (Emergency Safeguard Measures);  
(b) other WTO Members making substantive and sa tisfactory offers and revised offers in 
sectors and modes of supply where the Philippines has interests; and 
(c) the balanced outcome of the DDA negotiations. 
3. The Philippines reserves the right to modify, exte nd, reduce, withdraw, in whole or in part, 
any of this offer at any time prior to the c onclusion of the current services negotiations. The 
Philippines further reserves the right to make technical  amendments to this offer and make corrections 
to rectify any errors, omissions, or inaccuracies, as  well as to clarify and interpret the terms and 
conditions of this offer. 
4. The classification of services in this initia l offer is based on the Services Sectoral 
Classification list (MTN.GNS/W/120 dated 10 July 1991)  and is in accordance with the definition in 
the 1991 UN Provisional Central Product Classification (CPC), unless otherwise specified. TN/S/O/PHL 
Page 2  
 
5. The editorial conventions used in this initia l offer follow the guidelines established by the 
WTO Secretariat in JOB(02)/88, i.e. 
 
Bold  – New text 
Strike Out 
– Deleted text 
Italics  – Where any new or deleted text constitutes merely a technical 
refinement that does not alter the scope or substance of an existing 
commitment 
 In addition: 
 
[   ] – information annotated solely for the purpo se of explanations and does not form part of the 
proposed commitment  TN/S/O/PHL
Page 3THE PHILIPPINES – CONDITIONAL INITIAL OFFER 
 
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
I. HORIZONTAL COMMITMENTS  
 All Sectors Included in this 
Schedule  3) In Activities Expressly Reserved by Law to 
Citizens of the Philippines (i.e., foreign equity 
is limited to a minority share):  
  The participation of foreign investors in  the 
governing body of any corporation engaged in 
activities expressly reserved to citizens of the Philippines by law shall be limited to the 
proportionate share of foreign capital of such 
entities. 
 
 All executive and managing officers must be 
citizens of the Philippines. 
 
 Acquisition of Land 
 
 All lands of the public domain are owned by 
the State. Only citizens of the Philippines or 
corporations or associations at least 60 per cent 
of whose capital is owned by such citizens 
may own land other than public lands and 
acquire public lands through lease. 
 
 Foreign investors may lease only private-
owned lands. 
 3) Access to Domestic Credit  
 
A foreign firm, engaged in non-manufacturing 
activities availing itself of peso borrowings, shall observe, at the time of borrowing, the 
prescribed 50:50 debt-to-equity ratio.  Foreign 
firms covered are: 
 
partnerships, more than 40 per cent of whose 
capital is owned by non-Filipino citizens; and   
corporations, more than 40 per cent of whose 
total subscribed capital stock is owned by non-Filipino citizens. 
 
This requirement does not apply to banks and non-bank financial intermediaries.    TN/S/O/PHL 
Page 4 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 4) Entry and Temporary Stay of Natural Persons 
Supplying Services  
 
 Non-resident aliens may be admitted to the 
Philippines for the supply of a service after a 
determination of the non-availability of a 
person in the Philippines who is competent, able and willing, at the time of application, to 
perform the services for which the alien is 
desired. 
   
COMPUTER AND 
RELATED SERVICES     
a. Consultancy services 
 related to the installation  of computer hardware  (841)  b. Software implementation  services (842)  
 1) None 
2) None 3) Up to 100% foreign equity participation is 
allowed for partnerships and corporations 
provided paid-in equity capital is at least 
US$200,000. Otherwise, only up to 40% 
foreign equity participation is allowed. 
4) None 
 1) None 
2) None 
3) None 
 
 
 
 
4) None 
  
e. Other  
 
 - Maintenance and     repair services of office   machinery and    equipment including    computers (845) 
- Other computer 
services (849) 1) None 
2) None 
3) Up to 100% foreign equity participation is 
allowed for partnerships and corporations 
provided paid-in equity capital is at least 
US$200,000. Otherwise, only up to 40% foreign equity participation is allowed. 
4) None 
 1) None 
2) None 
3) None  
 
 
 
4) None 
   TN/S/O/PHL
Page 5Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
COMMUNICATIONS 
SERVICES    
All subsectors    
 3) No franchise, certificate, or any other form of 
authorization for the operation of a public utility shall be granted excep t to citizens of the 
Philippines or to corporations or associations organized under the laws of the Philippines at least 60 per cent of whose capital is owned by such citizens 
 3), 4) Limitations listed in the horizontal section shall 
also apply 
   
Courier Services  1) Commercial presence is required 
2) None 3) None 4) None  1) None 
2) None 3) None 4) None  
Telecommunications Services  
 Voice mail  On-line information and data base retrieval  Electronic data exchange   Videotex     
 1) Only through duly enfranchised and certificated 
domestic public telecomm unications carriers  
2) None 3) Operation subject to securing of:   (i) Franchise from the Congress of the 
 Philippines 
 (ii) Certificate of Public Convenience and 
 Necessity (CPCN) from the National  Telecommunications Commission 
 4) None   
 1) None   2) None 3) None        4) None   TN/S/O/PHL 
Page 6 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
The following services (a-g) are 
offered only on a facilities basis, 
for public use, using either wired 
or wireless technology except cable television (CATV) and 
satellite. 
 a. Voice telephone services 
 
 -  Local services  -  Toll services 
   Domestic 
   International  
b. Telegraph Services 
 c. Telex Services 
 
d. Packet-switched data 
transmission services 
 e. Circuit-switched data 
transmission services  
 
 
  
 
 1) Unbound 
2) Unbound 
3) Entry is subject to the following requirements 
and conditions: 
 
 (i).  Franchise from Congress of the 
Philippines 
 (ii). Certificate of Public Convenience and 
Necessity (CPCN) from the National Telecommunications Commission 
 (iii) Foreign equity is permitted up to 40% 
 (iv) Resale of private leased lines is not 
allowed 
 (v)  Call back, dial back and other similar 
schemes which result in the same 
operation are not authorized. 
 (vi) Subject to the availability and efficient 
utilization of radio frequencies. 
  
 
 
  
 
 1) None 
2) None 
3)  
 (i). The number of non-Filipino citizens in the 
Board of Directors of  an entity shall be 
proportionate to the aggregate share of 
foreign capital of that entity. 
 (ii). All executives and managers must be 
citizens of the Philippines.  
f. Facsimile services 
 
g. Others 
  -  Cellular Mobile  
   Telephone Service 
 4) Unbound 4) Unbound   TN/S/O/PHL
Page 7Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
COMMUNICATION SERVICES 
 
The commitments in communication services are in accordance with the Ge neral Agreement on Trade in Services and its Annex on Te lecommunications.  In support of market 
access commitments undertaken, the fo llowing principles will form the basis for th e regulatory framework in basic telecommunica tions. 
 
1.Competitive safeguard  
 Appropriate measures shall be maintained for the purpose of pr eventing suppliers from engaging in or continuing anti-competitiv e practices. 
 
2.Interconnection
 
 
In order to achieve viable, efficient, reliable and universal  telecommunications services, a fair and reasonable interconnectio n of facilities of authorized public network operators 
and other providers of telecommunica tions services shall be provided. 
 
Interconnection shall be at any technically feasible point in the network, under non- discriminatory terms and conditions, in a timely fashion, and on terms and conditions that are 
fair, transparent and reasonable. 
 
A service supplier requesting interconnection with another supplie r will have recourse after a reasonable period of time which has been made publicly known to an independent 
domestic body, which may be a regulatory body referred to in paragraph 5 below, to reso lve disputes regarding appropriate terms , conditions and rates for 
interconnection within a reasonable period of time, to the extent that these have not been established previously. 
 3.Universal Service
 
 
Universal service obligations, as may be defined by the appropria te Authority, shall be administered in a transparent, non-disc riminatory and competitively neutral manner. 
 
Authorized international gateway and mobile cellular telephone service providers are required by law to install a set number of  local exchange lines in designated areas. 
  TN/S/O/PHL 
Page 8 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
4.Public availability of licensing criteria  
 
Where a license is required, the following shall be made publicly available: 
 (a)all the licensing criteria and the peri od of time normally required to reach a d ecision concerning an application for a lice nse; 
(b)the terms and conditions of individual licenses 
 The reasons for the denial of a license will be made known to the applicant upon request. 
 
5.Independent regulators
 
 
The regulatory body is separate from, and not accountable to, any supplier of a ba sic telecommunications se rvices.  The decisio ns of and the procedures used by regulators shall be 
impartial with respect to all market participants. 
 
The regulation of telecommunication suppliers shall rely principall y on an administrative process that is stable, transparent a nd fair, giving due emphasis to technical, legal, 
economic and financial considerations , and with due regard to the observance of due process at all times. 
 
A national consultative forum shall be maintained to allow in teraction among the telecommunications industries, user groups, an d academic and research in stitutions on important 
issues in the field of communications. 
 
6.Allocation and use of scarce resources  
 
Any procedures for the allocation and use of scarce resources wh ich are frequencies, numbers and rights of way, will be carried  out in an objective, timely, transparent and non-
discriminatory manner.  The current state of allocated frequency bands wi ll be made publicly available, but detailed identifica tion of frequencies allocated for specific government 
uses is not required. 
  TN/S/O/PHL
Page 9Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
CONSTRUCTION 
SERVICES     
Site preparation work for 
mining ( 5115, 51150 ) 
 
Tunnelling, overburden 
removal and other development and preparation 
work of mineral properties & 
sites, except for mining oil and gas. 
 
Exclusion
:  Construction 
services incidental to oil & gas 
mining are classified in 
subclass 88300 (Services incidental to mining). 
For long distance pipelines, 
communication and power 
lines (cables ) (5134, 51340 ) 
 
Construction work of long 
distance overland or 
submarine pipelines & power and telecommunication 
transmission lines (cables). 1) Unbound 
2) Unbound 3) Up to 40% foreign equity for private 
domestic construction contracts (Rule 3, 
Section 3.1 of the Im plementing Rules and 
Regulations of Republic Act No. 4566) 
 
 Up to 25% foreign equity for construction 
and repair of locally funded public works 
(Commonwealth Act No.  541; Letter of 
Instruction No. 630, Republic Act No. 7042, as amended by Republic Act No. 8179) 
 
 Up to 25% foreign equity for construction of 
defense-related buildings and structures e.g. 
land, air, sea and coastal defense, arsenals, 
barracks, hangar, landing fields, hospitals 
(Commonwealth Act No. 541) 
  A Contractor’s License issued by the 
Philippine Contractors Accreditation Board 
(PCAB) is required to undertake construction activities (Republic Act. No. 
4566) 1) Unbound 
2) Unbound 
3) Unbound 
 
  
 
  
 
  
 
  
 
 
 
  
 
  
   TN/S/O/PHL 
Page 10 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Exclusion : 1) Construction 
work of local gas pipelines, 
water mains or 
communication transmission lines (cables) are classified in 
subclass 51350 (Const. work 
for local pipelines and cables; ancillary works); and 2) 
Construction work of national 
power transmission grid, main water lines from water 
source to treatment plants, 
main natural gas pipelines from main source to 
distribution hub, and national 
communications backbone system. 
 4) Unbound except as indicated in the 
horizontal section 
 4) Unbound  
DISTRIBUTION SERVICES     
A. Commission Agent’s 
Services except rice and 
corn industry (621) 1) Commercial presence is required.  
2) None 
3) 
 a. 100% foreign equity is allowed provided 
paid in equity is not less than US $200,000 for 
domestic market enterprises.  
 b. 100% foreign equity is allowed if the 
agent exports 60% or more of its output.  
 
4)   a. A natural person is allowed provided 
that the total investment is not less than US 
$200,000 for domestic market enterprises.  
 b. A natural person is allowed provided 
60% or more of his output is exported.  
 1) None 
2) None 
3) None 
  
 
  
 
4) None    TN/S/O/PHL
Page 11Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
ENVIRONMENTAL 
SERVICES     
Sewerage services (9401) 
  1) Unbound* 
2) None 3) For participation in public and/or private 
sewerage services, up to 40% foreign equity 
participation is allowed.  
 
 For participation in public and/or private 
sewerage services in Metro Manila, it is subject to negotiations and agreement with 
Concessionaires (i.e., Manila Water and 
Maynilad) and approval/regulation by the Metropolitan Waterworks and Sewerage 
System (MWSS). If the parties agreed 
(MWSS & the two concessionaires), amendment of the Concession Agreement 
shall be made.  
 
 For areas outside Metro Manila, entry into 
public/private sewerage services is subject to the following:  
 
 Where Local Water Dist ricts (LWDs) exist, 
participation or entry should be in the form of 
partnership or corporation which may then 
enter into a Build-Operate-Transfer (BOT) Scheme or other similar schemes or other 
forms of contractual agreements with the 
LWDs.  
 
 In the absence of existing LWDs, entry should 
still be in the form of partnership or corporation; howev er, the contractual 
agreements that may be entered into will be 
with local government unit/s concerned.  
 1) Unbound* 
2) None  3) None  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
 
   TN/S/O/PHL 
Page 12 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 4) Employment of professionals: 
 
 Concerned public/ private agencies who seek 
the services of foreign professionals may request the Professional Regulation 
Commission for Special Temporary Permit 
and the Department of Labor and Employment for work permit, under the 
following conditions: 
 
• Under reciprocity if registration/ 
licensing requirements in the 
foreigner’s state/country are the same as those in the Philippines. 
• If Filipino professionals are allowed to 
practice in and are granted the same 
privileges as those enjoyed by subjects/ 
citizens of the foreigner’s country. 
• Under International Agreements. 
• Under consultancy services in foreign 
funded, joint-venture or foreign assisted projects of the government; or  
• Foreign employees of Philippine/ 
foreign private firms/ institutions allowed by law to practice in the 
Philippines.    
 4) None   TN/S/O/PHL
Page 13Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 FINANCIAL SERVICES 
 The commitments in financial services are in accordance with the General Agreement on Trade in Services and its Annex on Finan cial Services.  
All sub-sectors 3) The appropriate regulatory authority in the 
Philippines shall determine whether public interest and economic conditions justify 
authorization for the establishment of 
commercial presence or expansion of existing operations in banking and other financial 
services in the Philippines.  For foreign 
financial institutions with internationally recognized standing, such determination shall 
include a demonstrated cap acity to contribute to 
the attainment of Philippine development objectives particularly in the promotion of 
trade, investments and appropriate technology 
transfer; and the country of incorporation has strategic trade and investment relations with the 
Philippines.   
  In banking, the Monetary Board shall ensure 
that at all times seventy per cent (70%) of the 
resources or assets of the Philippine banking system is held by domestic banks which are at 
least majority-owned by Filipinos. 
 3),4) Limitations listed in the horizontal section 
shall also apply. 
    TN/S/O/PHL 
Page 14 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Banking and other financial 
 services  (excluding 
 Insurance) 
 Commercial banking 
 
- Acceptance of deposits and 
other repayable funds 
from the public 
 - Lending of all types, 
 including consumer credit, 
 mortgage credit, and  financing of commercial 
 transaction 1) Commercial presence is required. 
2) None 
3) I.Forms of commercial presence
 
  A foreign bank, widely-owned and publicly 
listed, may avail itself only of one form of 
commercial presence at a time.  However, this shall not preclude secondary investment in the 
equity of a locally incorporated bank not 
exceeding thirty per cent (30%) of voting stock 
or forty per cent (40%) upon approval by the 
President of the Philippines. 
  (a) Establishment of foreign bank branches
  
 Bound for ten (10) new licences for the period 
1995-2000.  Full banking authority to new and existing foreign 
bank branches. 
 1) None  
2) None  
3) None 
  
- All payment and money 
 transmission services, 
 including credit, charge  and debit cards, travellers 
 cheques and bankers drafts 
 - Guarantees and 
 commitments 
 - Trading for own account or 
 for account of customers, 
 whether on an exchange, in  an over-the-counter market 
 or otherwise, the following:   Each foreign bank shall be allowed to establish 
a maximum of six (6) branches, with the first 
three (3) of these branch es at locations of its 
choice and the remaining three (3) branches at 
locations designated by the Monetary Board. 
  The prescribed capital ratio shall consist of the 
permanently assigned capital and "net due to" 
account not exceeding the equivalent of four 
(4) times the amount of permanently assigned capital.  The permanently assigned capital and 
fifteen per cent (15%) of the required "net due 
to" account shall be inwardly remitted and converted into Philippine currency. 
   
 
    TN/S/O/PHL
Page 15Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
- money market instruments 
 (bank's own promissory  
 notes, repurchase  
 agreements, and   certificates of assignment/ 
 participation with  
 recourse);   
- foreign exchange; 
   (b) Acquisition of up to fifty-one percent 
(51%) of the voting stock of an existing 
domestic bank.  Existing foreign banks owning 
voting stock beyond the fifty-one percent (51%) level will be maintained at their current 
levels. 
  (c) Investing in up to fifty-one percent (51%) 
of the voting stock of a new locally 
incorporated banking subsidiary.  Existing 
investments of foreign banks beyond the fifty-one percent (51%) level will be maintained at 
their existing levels. 
   
- derivative products  
 including, but not limited 
 to, futures and options; 
 - exchange rate and interest  
 rate instruments, including  
 products such as swaps,   forward rate agreements;   
 and 
 - other allowable negotiable  
 instruments and financial  
 assets.   The majority of the members of the Board of 
Directors of a locally incorporated bank shall 
be citizens of the Philippines. 
  For foreign service suppliers other than banks, 
aggregate share in the vo ting stock of a locally 
incorporated bank shall be limited to thirty per cent (30%) or up to forty per cent (40%) upon 
approval by the President of the Philippines.  
Shareholding in a loca lly incorporated bank 
must not exceed twenty per cent (20%) for an 
individual and thirty per cent (30%) for a 
corporation.    
- Participation in issues of all 
kinds of securities, 
including underwriting and 
placement as agent (whether publicly or 
privately) and provision of 
services related to such issues 
 
- Asset management, such as 
cash or portfolio 
management, all forms of 
collective investment II. Scope of operations
 
 
 Prior authorization is required for the 
following: 
 
 - acceptance of deposit substitutes and other 
  repayable funds from the public;  
 - guarantees and commitments;  
  - performance of trust, investment  
  management and other fiduciary  
  functions;  
 
 
  
 
  
 
  
 
   TN/S/O/PHL 
Page 16 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
management, custodial, 
depository and trust 
services  
 - foreign currency deposit unit operations;  
 
 - derivatives activities.  
 Underwriting (firm and best efforts basis) may 
be performed only by commercial banks with expanded commercial banking authority. 
 
4) Unbound, except as provided in the horizontal 
section.   
 
 
  
 
  
 
4) A non-Filipino citizen employed as officer or 
assigned to do technical functions shall have 
two Filipino understudies. 
 
Investment houses:  
- Purchase and sell, 
distribute or arrange to distribute on a guaranteed 
basis securities of other 
corporations 
 
- Participate as soliciting 
dealer or selling group member in tender offers, 
block sales, or exchange 
offering of securities 
 
- Deal in options, rights or 
warrants relating to 
securities 
 - Act as financial consultant, 
investment adviser or 
broker 
 
- Act as portfolio 
manager/financial agent 
 
- Design pension, 
profit-sharing and other 1) Commercial presence is required.  
2 )None 
3) Must be organized as a stock corporation. 
  Subject to foreign equity limitation of fifty-one 
per cent (51%). 
  The majority of the members of the Board of 
Directors shall be citizens of the Philippines. 
 An investment house is not allowed to engage 
in banking operations. 
 
 Prior authorization is required for the 
performance of quasi-banking functions. 
 
4) Unbound, except as provided in the horizontal 
section. 1) None 
2) None 
3) None 
  
 
  
 
  
 
  
 
4) Unbound, except as provided in the horizontal 
section.   TN/S/O/PHL
Page 17Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
employee benefits plans  
Financial advisory services as 
follows:   
- credit reference and 
analysis 
 
- investment and portfolio 
research and advice 1) None  
2) None  3) Required to be organized as a commercial 
bank, or an investment house, or a non-bank 
financial intermediary. 
 
 For commercial banks, all limitations 
mentioned under mode 3 above for commercial banks shall apply. 
 
 For investment houses, all limitations 
mentioned under mode 3 above for investment 
houses shall apply. 
  Foreign equity participation is bound at forty 
per cent (40%) for non-bank financial 
intermediary. 
 
4) Unbound, except as provided in the horizontal 
section. 1)None  
2)None  3)None 
 
  
 
  
 
  
 
  
 
  
4) A non-Filipino citizen employed as officer or 
assigned to do technical functions shall have 
two Filipino understudies. 
  
 Factoring 1) Commercial presence is required. 
2) None  
3) Must be performed by a financing company 
only, organized either as a corporation or general partnership. 
 
 Subject to foreign equity limitation of forty per 
cent (40%). 
 
 Membership of non-Filipino citizens in the 
Board of Directors is limited to one-third of 
the Board's total membership in the case of a 
corporation;  no foreign managing partners in the case of a general partnership. 
4) Unbound, except as provided in the horizontal 
section. 1) None 
2) None 
3) None 
  
 
  
 
  
 
  
4) A non-Filipino citizen employed as officer or 
assigned to do technical functions shall have 
two Filipino understudies.   TN/S/O/PHL 
Page 18 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Financial leasing 1) Commercial presence is required. 
2) None  
3) Must be performed by a financing company 
only, organized either as a corporation or general partnership. 
 
 Subject to foreign equity limitation of forty per 
cent (40%). 
 
 Membership of non-Filipino citizens in the 
Board of Directors is limited to one third of the 
Board's total membership in the case of a 
corporation;  no foreign managing partners in the case of a general partnership. 
 
4) Unbound, except as provided in the horizontal 
section. 1) None 
2) None  
3) None 
  
 
  
 
  
 
  
 
4) A non-Filipino citizen employed as officer or 
assigned to do technical functions shall have 
two Filipino understudies. 
  
 Money broking and  
 foreign exchange broking 1) Commercial presence is required. 
2) None 
3) Required to be organized as a commercial 
bank or a non-bank financial intermediary.   
 For commercial banks, all other limitations 
mentioned in mode 3 above for commercial 
banks shall apply. 
 
 Foreign equity participation is bound at forty 
per cent (40%) for non-bank financial 
intermediary. 
 4) Unbound, except as provided in the horizontal 
section. 1) None  
2) None  
3) None 
  
 
  
 
 
 
 4) A non-Filipino citizen employed as officer or 
assigned to do technical functions shall have 
two Filipino understudies. 
   TN/S/O/PHL
Page 19Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Credit card services 
 1) Commercial presence is required. 
2) None 
3) Required to be organized as a commercial 
bank or a non-bank financial intermediary. 
 
 For commercial banks, all other limitations 
mentioned under mode 3 above for commercial banks shall apply. 
 
 Foreign equity participation is bound at forty 
per cent (40%) for non-bank financial 
intermediary . 
 4) Unbound, except as those provided in the 
horizontal section. 
  1) None  
2) None  
3) None 
  
 
  
 
  
 
 4) A non-Filipino citizen employed as officer or 
assigned to do technical functions shall have 
two Filipino understudies. 
  
Promotion and provision of 
information by a representative 
office about the services or products offered by a foreign 
bank 1) Commercial presence is required. 
2) None  
3) None  4) Unbound, except as those provided in the 
horizontal section.  1) None 
2) None 
3) None 4) Unbound, except as those provided in the 
horizontal section. 
  
Securities dealership/brokerage 
 
- Trading for own account or 
for account of customers, 
whether in an exchange, in 
an over-the-counter market 
or otherwise, the following: 
 - Equities and its derivative  
 products such as warrants  
 and options  
- Transferable securities 1) Commercial presence is required. 
2) None 
3) Required to be organized as an investment 
house or as a securities broker/dealer 
corporation or partnership. 
 
 For investment houses, all other limitations 
mentioned under mode (3) above for investment houses shall apply. 
 
 For securities broker/dealer - must be a 
member of the stock exchange. Membership is 
limited to 200. Underwriting is allowed only 
on best-efforts basis. 
 
4) Unbound, except as those provided in the 
horizontal section. 1) None 
2) None 
3) None  
 
 
 
  
 
  
 
  
(4) Unbound, except as those provided in the 
horizontal section.   TN/S/O/PHL 
Page 20 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Participation in issues of all 
kinds of securities, 
including underwriting and 
placement as agent (whether publicly or 
privately) and provision of 
services related to such issues 
 
  
 
  
 
  1) Commercial presence is required. 
2) None 
3) Required to be organized as an Investment 
House or as a securities broker/dealer corporation or partnership. 
 
 For investment houses, all other limitations 
mentioned under mode 3 above for investment 
houses shall apply. 
  For securities broker/dealer - must be a 
member of the stock exchange. Membership is 
limited to 200. Underwriting is allowed only on best-effort basis. 
 
4) Unbound, except as those provided in the 
horizontal section. (1)None 
(2)None 
(3)None 
  
 
  
 
  
 
  
 
(4)Unbound, except as those provided in the 
horizontal section. 
  
 Performance of the 
functions of stock transfer 
agent such as but not 
limited to monitoring the issuance and transfer of 
stock certificates 1) Commercial presence is required. 
2) None 
3) Must be organized either as a corporation or 
partnership with at least one certified public accountant duly licensed in the Philippines. 
4) Unbound, except as those provided in the 
horizontal section. 
 1) None 
2) None 
3) None 
  
4) Unbound, except as those provided in the 
horizontal section.  
 Transactions of an issuer 
primarily engaged in the 
business of investing, 
reinvesting or trading in securities 
 
  
 
  
 1) Commercial presence is required. 
2) None 
3) Must be performed by an investment company. 
  Foreign equity participation is bound at forty 
per cent (40%). 
  All members of the Board of Directors must be 
citizens of the Philippines. 
 4) Unbound, except as those provided in the 
horizontal section. 
 1) None 
2) None 
3) None 
  
 
  
 
 4) Unbound, except as those provided in the 
horizontal section.    TN/S/O/PHL
Page 21Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Sale of contracts for the 
payment of benefits or 
performance of future 
services such as life, education, pension and 
internment plans 1) Commercial presence is required. 
2) None 
3) Foreign equity participation is bound at forty 
per cent (40%). 
4) Unbound, except as those provided in the 
horizontal section. 
 1) None 
2) None 
3) None 
 
4) Unbound, except as those provided in the 
horizontal section.  
Insurance  
 
All sub-sectors 3),4) Limitations listed in the all-sector horizontal 
section and all financial services section shall 
apply. 
 
3) Limitations in market access listed in the 
specific sub-sectors below shall not apply to existing wholly or majority foreign-owned 
authorized insurance/reinsurance companies as 
of the entry into force of this WTO Financial Services agreement.  
 
4) Qualified Non-Filipino citizens may be 
employed for technical positions only within 
the first five (5) years of operation of the enterprise, their stay not to exceed five (5) 
years upon entry. 
 4) Each employed non-Filipino citizen shall have 
at least two (2) Filipino understudies.   TN/S/O/PHL 
Page 22 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Life insurance as follows:  
 
- Ordinary 
- Group - Industrial 
- Health and 
 accident - Annuities 1) Risks located in the Philippines shall be insured 
with the companies authorized
* to transact 
business in the Philippines. 
2) Same as (1) above 3) Market access is limited to: 
 
  a. Acquisition of up to fifty one percent 
(51%) of the voting stock of an existing 
domestic insurance company. 
  b. Investing in up to fifty one percent (51%) 
of the voting stock of a new locally 
incorporated insurance company. 
   Participation of non-Filipino citizens in the 
Board of Directors of a locally incorporated 
insurance company is limited to one-third of the Board's total membership. 
 
4) Unbound, except as those provided in the 
horizontal section. 
 1) Unbound 
 
 
2) Unbound 3) None 
 
  
 
  
 
  
 
  
 
4) Unbound    
                                                      
* The company which had been issued a licence or a certificate of  authority by the Insurance Commission to transact business in the Philippines prior to 1 October 1994.  TN/S/O/PHL
Page 23Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
General non-life, as follows: 
 
- fire and allied risks/ 
 earthquakes/  shock/typhoons/ 
 floods/tidal wave  
 - marine ocean  
 marine/inland  
 marine/marine   hull/aviation 
 
- casualty motor car/health 
and accident/burglary/ 
 engineering  
 miscellaneous  
- suretyship fidelity/surety  
 bonds 1) Except for marine hull and marine cargo 
insurance, risks located in the Philippines shall 
be insured with the companies authorized
* to 
transact business in the Philippines. 
2) Same as (1) above 
3) Market access is limited to: 
   (a) Acquisition of up to fifty one per cent 
(51%) of the voting stock of an existing 
domestic insurance company. 
  (b) Investing in up to fifty one per cent (51%) 
of the voting stock of a new locally 
incorporated insurance company. 
 
  Participation of non-Filipino citizens in the 
Board of Directors of a locally incorporated 
insurance company is limited to one third of the 
Board's total membership. 
 
4) Unbound, except as those provided in the 
horizontal section. 
 1) Unbound 
 
 
 2) Unbound 
3) None 
  
 
  
 
  
 
  
 
 
4) Unbound   
Insurance auxiliary services, as  
follows:  
- actuarial consultancies 
 - average adjustors 
 1) Commercial presence is required. 
2) None 3) Subject to foreign equity limitation of forty per 
cent (40%). 
   Participation of non-Filipino citizens in the 
Board of Directors of domestic companies is 
limited to one third of the Board's total membership. 
 
4) Unbound, except as those provided in the 
horizontal section. 
 1) Unbound 
2) None 3) None 
 
  
 
  
 
4) Unbound   
                                                      
* The company which had been issued a licence or a certificate of  authority by the Insurance Commission to transact business in the Philippines prior to 1 October 1994.  TN/S/O/PHL 
Page 24 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Reinsurance/ 
retrocession 1) Priority cessions to authorized 
  insurance/reinsurance companies. 
 
  Foreign unauthorized reinsurers should be 
represented by resident agents duly registered 
with the Insurance Commission. 
   Ten per cent (10%) of total insurance cessions 
to foreign unauthorized reinsurers should be 
ceded to the National Re insurance Corporation 
of the Philippines. 1) None  
 2) Same as 1) above 
3) Market access is limited to:  
  a) Acquisition of up to forty per cent (40%) 
of the voting stock of an existing domestic reinsurance company. 
  b) Investing in up to forty per cent (40%) of 
the voting stock of a new locally incorporated 
reinsurance company. 
   Participation of non-Filipino citizens in the 
Board of Directors of  a locally incorporated 
reinsurance company is limited to one third of the Board's total membership. 
 
4) Unbound, except as those provided in the 
horizontal section. 
 2) None 
3) None  
 
  
 
 
 
  
 
  
 
4) Unbound   TN/S/O/PHL
Page 25Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
TOURISM SERVICES     
 Tourism accommodation 
facilities  
- Hotel  
- Resort  
- Pension house  
- Tourist inn  
- Apartell  
 
 Hotel Lodging Services 
(CPC 64110) 
 1) Unbound* None  
2) None 
3) Subject to foreign equity limitation of 40% for 
pension house, tourist inn and apartel.  100% 
foreign equity is allowed  
 
4) As a general rule, only citizens of the 
Philippines can be employed in tourism 
oriente d establishments.  
 
 However, for hotels and resorts, aliens may be 
employed subject to the pertinent provisions of 
the Tripartite Agreement among the 
Department of Tourism, Department of Labor 
and Employment and Bureau of Immigration, 
as follows:  
 i)  Only  hotels/resorts duly accredited by the 
Department of Tourism shall be allowed to 
engage the services of aliens  
 ii)  Aliens may occupy a maximum of four (4) 
managerial positions in a hotel or resort 
establishment  
 iii)  For new hotels or resorts, aliens requ ired 
during the pre -operation stage and up to six (6) 
months after opening of the hotel/resort to the 
public may be employed  
 iv)  The services of aliens may be engaged 
during special occasions/events such as food 
festivals, provided th e service contract sh all be 
limited to a period of three (3) months 
renewable for a maximum period of another 
three (3) months  
 
 Subject to horizontal commitment 
 1) Unbound*  None 
2) None 
3) None 
 
 
 4) None   TN/S/O/PHL 
Page 26 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Specialty Restaurants 1)  Unbound* 
2) None 
3) No foreign equity is allowed if the specialty 
restaurant is not part of the facilities of a hotel. 
4) Aliens may be employed in specialty restaurants 
subject to pertinent provisions of the Tripartite 
Agreement among the Department of Tourism, Department of Labor and Employment and the 
Bureau of Immigration, as follows: 
 i) Only specialty restaurants duly accredited 
with the Department of Tourism as well as those 
forming part of the integrated operation of 
accredited hotels/resorts  may be allowed to 
engage the services of aliens; 
 ii) A specialty restaurant with a minimum of 
75-seat capacity shall be allowed to employ one (1) alien Specialty Chef or Sous Chef. In the 
initial stage of operation of a specialty restaurant 
and for a maximum period of two (2) years, 
three (3) more alien specialty chefs or sous 
chefs may be employed; and 
 iii) A specialty restaurant with a seating 
capacity of 500 or more may be allowed to 
employ three (3) additional aliens in any of the following positions: specialty chef, sous chef, 
food service manager or a combination of the 
above 
   
 Travel Agencies 
 (CPC 74710) 1) Commercial presence is required  None  
2) None 3) Subject to foreign equity limitation of 40 %
 
60% foreign equity is allowed  
4) Managers and executives must be resident 
Filipino citizens Subject to horizontal 
commitment 
 1) None 
2) None 3) None 
 
4) None   TN/S/O/PHL
Page 27Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Professional Congress 
 Organizers 1) Unbound*  None  
2) None 
3) Subject to foreign equity limitation of 40%  
60% foreign equity is allowed  
4) None 
 1) Unbound*  None  
2) None 
3) None 
 4) None  
TRANSPORT SERVICES     
 All subsectors 3) No franchise, certificate, or any other form of 
authorization for the operation of a public utility shall be granted excep t to citizens of the 
Philippines or to corporations or associations organized under the laws of the Philippines at least 60 per cent of whose capital is owned by such citizens.   
 4) Only aliens qualified to hold technical positions 
may be employed within the first five years of operation of the enterprise,  their stay not to exceed five (5) years upon entry. 
  Each employed alien should have at least two (2) 
Filipino understudies. 
   
 3), 4) Limitations listed in the horizontal section shall 
also apply    TN/S/O/PHL 
Page 28 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Maritime Transport 
 Services  
  International Transport  (passenger and freight),  except   a) cabotage transport, and   b) government-owned 
 cargoes
1 
  
  1) None 2) None 3) None 4) For specialized vessels, aliens may be employed 
as supernumeraries only for a period of six months. 
  
  1) None 2) None 3) None 4) None  
 Leasing/rental of vessels 
without crew 1) None 
2) None 3) Bareboat charter or lease contract subject to 
approval by the Maritime Industry  Authority (MARINA) 
4) None 1) None 
2) None 3) None   4) None   
 Maintenance and repair of 
vessels  1) Unbound* 
2) Any repairs, conversion or drydocking of 
Philippine-owned or registered vessels are required to be done at domestic ship repair yards registered with the Maritime Industry Authority (MARINA) 
3) None 4) None  1) Unbound* 
2) None     3) None 4) None  
                                                      
 1Subject to the Cargo Reservation Law which requires that cargoe s owned by government-owned or controlled corporations shall be shipped on board Philippine flag vessels. 
 *Due to lack of technical feasibility.    TN/S/O/PHL
Page 29Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Air Transport Services     
 Leasing/rental  of aircraft 
 without crew 1) None 
2) None 3) Lease contract subject to approval by the Civil 
Aeronautics Board 
4) None 1) None 
2) None 3) None  4) None   
 Maintenance and repair of  
 aircraft 1) Unbound* 
2) None 3) None 4) None  1) Unbound* 
2) None 3) None 4) None  
 General Sales and Cargo 
 Sales Agency 1) Commercial presence is required 
2) None 3) None 4) None  1) None 
2) None 3) None 4) None  
 Rail Transport Services  
  Passenger and freight  transport  
 1) Unbound* 2) None  
 1) Unbound*  2) None  
 3) None 
4) None 3) None 
4) None  
 Maintenance and repair of  
 rail transport equipment 1) Unbound*  
2) None 3) None 4) None  1) Unbound*  
2) None 3) None 4) None   
                                                      
 *Due to lack of technical feasibility.  TN/S/O/PHL 
Page 30 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Road Transport Services  
  Passenger and freight  transport  
 1) Unbound
* 
2) None   
 1) Unbound* 2) None  
 3) Provisional authority/certificate of public 
convenience must be secured from the Land Transportation Franchising and Regulatory Board (LTFRB) 
  New entrants are subject to economic needs test, 
as follows: 
 a) the need to provide protection to 
investments of operators in unserved areas/developmental routes;  and 
 b) the route measured capacity test for number 
of vehicles. 
 4) None  3) None 
            4) None  
 Maintenance and repair of  
 road vehicles 1) Unbound*  
2) None  1) Unbound*  
2) None  
 
 3) None 
4) None  3) None 
4) None  
                                                      
  *Due to lack of technical feasibility. 
  TN/S/O/PHL
Page 31Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Services Auxiliary to All  
 Modes of Transport  
  Cargo handling services   Storage and warehousing  services   Container yard and depot   services  
  1) Unbound
* 
2) None  3) None 4) None   
  1) Unbound*  2) None 3) None 4) None  
 Freight forwarding 
services 
 1) None 
2) None 3) None 4) None  1) None 
2) None 3) None 4) None  
ENERGY SERVICES     
a) Services Related to Power 
Generation  
 
 - Construction and 
operation of power plants 
(as provided under the 
BOT  scheme) 
 
 Construction of Power 
Plants 
 
 Operation of Power 
Plants 
 
 1) Unbound* 
2) None 
3) Up to 100% foreign equity is allowed under 
the BOT scheme.  However, a Special Constructor's License is required to 
undertake construction activities. 
4) Unbound 
 
 
 1) Unbound* 
2) None 
3) None   4) Unbound  1) Unbound* 
2) None 
3) A Special Constructor's License may be 
given to foreign companies on a project-to-project basis such as BOT.  
4) Unbound 
  
 
1) Unbound* 2) None 
3) None  
4) Unbound   A Contractor’s License 
(Regular or Special) issued 
by the Philippine 
Contractors Accreditation Board (PCAB) is required to 
undertake construction 
activities. The Regular Contractor’s License is 
reserved for, and issued only 
to, Filipino sole proprietorships or 
partnerships/corporations 
with at least 60% Filipino equity and duly organized 
and existing under and by 
virtue of Philippine laws. 
                                                      
 * Due to lack of t echnical feasibility.  TN/S/O/PHL 
Page 32 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Services Related to Energy 
Distribution  (887)  
 
- Energy distribution  networks such as 
 pipelines for 
 transmission,   distribution and supply of 
 natural gas, and power 
 transmission and   distribution lines  
 1) Unbound* 
2) None 
3) Foreign equity participation is limited to  
40%.  
4) Concerned public/private agencies who seek 
the services of foreign professional may 
request the Professional Regulation Commission for Special Temporary Permit, 
upon recommendation of concerned 
Professional Regulatory Board, and the Department of Labor and 
 Employment for Work Permit under the 
following conditions: 
 
• Under reciprocity registration/licensing 
requirements in the foreigner's state/country are the same as those in 
the Philippines; 
• If Filipino professionals are allowed to 
practice in and are granted the same 
privileges as those enjoyed by subjects/citizens of the foreigner's 
country; 
• Under International Agreements;   
• Under consultancy services in foreign 
funded, joint venture or foreign assisted 
projects of the government. 
 1) Unbound* 
2) None 
3) None 
 4) None  
  
  TN/S/O/PHL
Page 33Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Services Incidental to 
Mining (883) 
 
- Oil and Gas, Geothermal 
and Coal Exploration and 
Development   1) Unbound* 
2) None 
3) Foreign equity participation is limited to     
40%.  
 
 However, the President may enter into 
service contract agreement with foreign- owned corporation for technical, financial or 
other forms of assist ance involving large-
scale exploration, development and utilization of energy resources.    
 
4) Concerned public/private agencies who seek 
the services of foreign professionals  may 
request the Professional Regulation 
Commission for Special Temporary Permit, upon recommendation of  concerned 
Professional Regulatory Board, and the 
Department of Labor and  
 Employment for Work Permit under the 
following conditions: 
 
• Under reciprocity registration/licensing 
requirements in the foreigner's state/country are the same as those in 
the Philippines; 
• If Filipino professionals are allowed to 
practice in and are granted the same 
privileges as those enjoyed by 
subjects/citizens of the foreigner's country; 
• Under International Agreements;   
• Under consultancy services in foreign 
funded, joint venture or foreign assisted 
projects of the government. 
 1) Unbound* 
2) None 
3) None 
  
 
  
 
  
 
4) Unbound   TN/S/O/PHL 
Page 34 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Services Related to the Supply 
of  Energy    
- Oil Refinery 1)  Unbound* 
2) None 
3) Initial Public Offering (IPO) for 10% of 
common stock on commencement of refinery 
operation. 
4) Unbound 
 1) Unbound* 
2) None 
3) None 
 
 4) Unbound  
- Oil Terminals/Dep ots 1) Unbound* 
2)  None 
3) None 4) Unbound 
 1) Unbound* 
2) None 
3)  None 4) Unbound  
- Petroleum Product Retail 
Outlets 1) Unbound* 
2) None 
3) Up to 100% foreign equity participation is 
allowed provided paid-up capital is higher 
than US$ 2.5M. 
 
 Parent retail trading corporation: 
 a) US$ 200M net worth  - Category B;   US$ 50M net worth - Category D 
 b)  5 year track record on retailing 
 c) 5 retailing branches anywhere in the 
world or  one branch is capitalized at a 
minimum of US$ 25M. 
 d) Reciprocal treatment   
4) Unbound 
 1) Unbound* 
2) None 
3) None  
 
 
 
  
 
  
 
  
4) Unbound  
 
 
__________