THIRTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
S E N A T  
J1I” 30 P2 :56 
S. No. 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
In 1995, Congress ratified the Philippines’ accession to the World Trade 
Organization, (WTO), emboldened by the projected gains from free trade that, it was 
claimed, the Philippines would reap under the aegis of the WTO. 
Six years after that important milestone, the prognosis is that globalization 
under the WTO has failed to deliver on the benefits promised to domestic producers. 
Numerous studies have been conducted in response to calls to reevaluate the 
globalization paradigm and its implications on the domestic economy and on public 
welfare from a better-informed perspective. The most striking finding is that while the 
government made extremely liberal commitments to the VVTO, and did its utmost to 
comply with those commitments, it fell short of many of its commitments to domestic 
producers in terms of safety nets, supportive legislation, and the provision of 
adequate public goods to support competitive markets. 
Free trade under the WTO is a game that we have to play well, if we are as a 
nation, to gain benefits from free trade. Sadly, our participation in the WTO has thus 
far been flawed by half-hearted efforts at consensus building on the domestic front 
and poorly prepared negotiating positions in international trade fora. In order to 
succeed, the promotion of Philippine products in global markets needs to be 
championed by a competent negotiator and statesman at its helm and supported by 
an aggressive policy stance. With such a helmsman, domestic production policies 
can then more easily focus on the development of competitiveness among our 
industries. 
This bill seeks to create the Office of the Philippine Trade Representative 
under the Office of the President. As the country’s chief negotiator, the Philippine 
Trade representative will coordinate all trade-refated policies, wage the trade game 
for us against the other governments of the world, and win market access for our 
products. Without this organization to marshal the resources needed to wage the 
trade game, our membership in the WTO could well turn out to be a liability and a 
burden to our people. 
In view of the foregoing, early passage of this bill is earnestly urged. 
It 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
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OF THE PHILIPPINES 
”1314 ,.iiiM 30 p 2 :56 
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A ECE I 
S E N A T  
S. No. 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
CREATING THE OFFICE OF THE TRADE REPRESENTATIVE, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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the Philippine Trade Representative”. 
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SECTION I. 
Title. - This Act shall be known as the ”Charter of the Office of 
SEC. 2. Declaration ofPolicy. - It is hereby declared the policy of the State 
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to pursue a trade policy that serves the general welfare and utilizes all forms and 
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arrangements of exchange on the basis of equality and reciprocity. 
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purpose, the State shall ensure that a single office shall, with competence, 
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coordinate all government policies, positions and measures with respect to 
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international trade relations and negotiations. 
SEC. 3. Creation. There is hereby created within the Office of the President 
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the Office of the Philippine Trade Representative, hereinafter referred to as the 
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“Office”. 
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The Office shall be headed by the Philippine Trade Representative who shall 
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be appointed by the President with the consent of the Commission on Appointments. 
The Philippine Trade Representative shall hold office at the pleasure of the 
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President, shall be entitled to receive the same allowances as a chief of mission, 
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and shall have the rank of Ambassador Extraordinary and Plenipotentiary 
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There shall be in the Office three (3) Deputy Philippine Trade representatives 
who shall be appointed by the President with the consent of the Commission on 
Appointments. Each Deputy Philippine Trade Representative shall hold office at the 
pleasure of the president and shall have the rank of Ambassador. 
SEC. 4. 
Limifafion on Appointments. - 
A person who has directly 
represented, aided or advised a foreign entity in any trade negotiation or trade 
dispute with the Philippines may not be appointed as Philippine Trade 
Representative or as a Deputy Philippine Trade Representative. 
SEC. 5. Functions and Responsibilifies of fhe Philippine Trade 
Representative. The Philippine Trade Representative shall 
a) Have primary responsibility for developing, and for coordinating the 
implementation of Philippine international trade policy, including commodity 
matters, and to the extent they are related to international trade policy, direct 
investment matters; 
b) Serve as the principal advisor to the President on international trade policy 
and shall advise the President on the impact of other policies of the Philippine 
Government on international trade; 
c) Have lead responsibility for the conduct of, and shall be the chief 
representative of the Philippines for international trade negotiations, including 
all negotiations on any matter considered under the auspices of the World 
Trade Organization, commodity and direct investment negotiations, in which 
the Philippines participates; 
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d) Issue and coordinate policy guidance to departments and agencies on basic 
issues of policy and interpretation arising in the exercise of international trade 
functions including any matter considered under the auspices of the World 
Trade Organization, to the extent necessary to assure the coordination of 
international trade policy and consistent with any other law; 
e) Act as the principal spokesman of the President on international trade; 
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9 Report directly to the President and Congress regarding, and be responsible 
to the President and Congress for the administration of trade agreement 
programs; 
g) Advise the President and Congress with respect to non-tariff barriers to 
international trade, international commodity agreements, and other matters 
which are related to the trade agreements programs; 
h) Be responsible for making reports to Congress with respect to matters 
referred to in sub-paragraphs (C ) and (F); 
i) Be chairman of the interagency committee on Trade-Related Investment 
Matters (TRIMS); and 
j) Be responsible for such other functions as the President may direct. 
SEC 6. 
Ex-officio positions and functions of the Philippine Trade 
Representative. The Philippine Trade Representative shall: 
a) be the senior representative on any body that the President may establish for 
the purpose of providing to the President advise on overall economic policies 
in which international trade matters predominate; and 
b) be included as a participant in all economic summit and other international 
meetings at which international trade is a major topic. 
SEC. 7. Authorities of the Philippine Trade Represenfafive. 
The 
Philippine Trade Representative may 
a) delegate any of his functions, powers and duties to such officers and 
employees of the Office as he may designate; and 
b) Authorize such successive re-delegations of such functions, powers and 
duties to such officers and employees of the Office as he may deem 
appropriate. 
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SEC. 8. Functions of Depufy Philippine Trade Representatives. Each 
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Deputy Philippine Trade Representative shall have as his principal function the 
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conduct of trade negotiations under this Act and shall have such other functions as 
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the Philippine Trade Representative may direct. 
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SEC. 9. hfer-Agency Coordinafion. 
In carrying out his functions and 
responsibilities with respect to unfair trade practices, the Philippine Trade 
Representative shall: 
a) coordinate the application of interagency resources to specific unfair trade 
practice cases; 
b) identify, and refer to the appropriate department or agency of the national 
government for consideration with respect to action, each act, policy or 
practice referred to in the required report or otherwise known to the Philippine 
Trade Representative on the basis of other available information, that may be 
an unfair trade practice that either: 
i. is considered to be inconsistent with the provisions of any trade 
agreement and has a significant adverse impact on Philippine commerce, 
or 
ii. has a significant adverse impact on domestic firms or industries that are 
either too small or financially weak to initiate proceedings under the trade 
laws. 
c) identify practices having a significant adverse impact on Philippine commerce 
that the attainment of Philippine negotiating objectives would eliminate; and 
d) identify, on a biennial basis, those Philippine government policies and 
practices that, if engaged in by a foreign government, might constitute unfair 
trade practices under Philippine law. 
For purposes of carrying out the above functions, the Philippine Trade 
Representative shall be assisted by an interagency unfair trade practices advisory 
committee composed of the Philippine Trade Representative, who shall chair the 
committee, and senior representatives of the following agencies, appointed by the 
respective heads of those agencies: 
a) the National Economic Development Authority; 
b) the Department of Trade and Industry; and 
c) the Department of Agriculture. 
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The Philippine Trade Representative may, for the purpose of carrying out his 
functions in this section: 
(I) 
subject to the civil service and classification laws, select, appoint, employ 
and fix the compensation of such officers and employees as are 
necessary and prescribe their authority and duties; 
(2) employ experts and consultants in accordance with laws and compensate 
individuals so employed for each day; 
(3) promulgate such rules and regulations as may be necessary to carry out 
the functions, powers and duties vested in him; 
(4) utilize, with their consent, the services, personnel and facilities of other 
national agencies; 
(5) enter into and perform such contracts, leases, cooperative agreements, or 
other transactions as may be necessary in the conduct of the work of the 
Office and on such terms as the Philippine Trade Representative may 
deem appropriate, with any agency or instrumentality of the Philippine 
government, or with any public or private person, firm, association, 
corporation or institution; 
(6) accept voluntary and uncompensated services, notwithstanding 
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provisions of the Civil Service Code; 
(7) adopt an official seal, which shall be judicially noticed; and 
(8) accept, hold, administer, and utilize gifts, devises and bequests of 
property, both real and personal for the purpose of aiding or facilitating the 
work of the Office. 
The Philippine Trade Representative shall, to the extent he deems necessary 
for the proper administration and execution of the trade agreements programs of the 
Philippines, draw upon the resources of, and consult with, national agencies in 
connection with the performance of his functions. 
SEC. 
10. Transfer of functions. - 
The Foreign Trade Service Corps 
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Coordinating Office, the Bureau of Export Trade Promotion and the Bureau of 
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International Trade Relations under the Department of Trade and Industry are 
hereby transferred to the Office of the Philippine Trade Representative. 
The rules and regulations for the implementation of the transfer of the above 
agencies shall be promulgated jointly by the Office and the Department of Trade and 
I nd ust ry . 
SEC. 11. Appropriations. The sum of Ten Million Pesos (PqO,OOO,OOO) is 
hereby authorized to be appropriated to the Office for the purposes of carrying out 
its functions for the fiscal year beginning January 1 , 2002. 
For the fiscal year beginning January 2003 and for each fiscal year thereafter, 
there are authorized to be appropriated to the Office for the salaries of its officers 
and employees such additional sums as may be provided by law to reflect pay rate 
changes made in accordance with the Salary Standardization Act. 
SEC. 12. lmplernenting Rules and Regulafions. - Within 60 days of the 
effectivity of this Act, the President shall appoint the Philippine Trade 
Representative, who shall, in consultation with the Departments of Trade and 
Industry, Agriculture, Foreign Affairs and the National Economic Development 
Authority, issue the necessary rules and regulations to implement the provisions of 
this Act. 
SEC. 13. Separability Clause. - If any section or provision of this Act shall 
be declared unconstitutional or invalid, the other sections or provisions not affected 
thereby shall continue to be in full force and effect. 
SEC. 
14. Repealing Clause. - Laws, rules and regulations and other 
issuances inconsistent with the provisions of this Act are deemed modified, revoked 
or repealed accordingly. 
SEC. 15. Effecfivify. - This Law shall take effect immediately upon its 
approval. 
Approved, 
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