SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
.irnah 
1.If,;, .1 tlr<,':;""bt, 
First Regular Session 
) 
'13 
AUG 29 Al0 :29 
SENATE 
Senate Bill No. 14 0 4 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
This bill seeks to enhance international trade policy formulation and 
negotiations through the creation of the Philippine Trade Representative Office 
(PTRO). The PTRO shall be a separate agency that shall handle international ' 
trade policy formtllation. and negotiations and at .the s~ame time. ensure effective 
coordination with other branches of government. It is envisioned that this measure 
shall synchronize all coordinating bodies involved in policy formulation and 
negotiations thereby contribute to the substantial trade and investments in our 
country. 
The present set up clearly shows· an overlapping of functions and 
responsibilities wherein several line agencies and ad hoc committees are 
mandated to handle trade negotiations. For instance, the Trade and Related 
Matters Committee (TRMC) is tasked to coordinate agency positions and 
recommend national pOSitions for international and economic negotiations. It has a 
Technical Committee composed of different line agencies handling trade and 
investments agreements such as the Technical Committee on WTO Matters 
(TCWM), 
The TCWM has technical subcommittees on agriculture, services, 
industrial goods and other rules which are headed by the DA, NEDA, DTI-BOI and 
DTI. The Philippine Council on ASEAN and APEC Cooperation (PCAAC) 
handles matters on ASEAN and APEC. However, the Bureau of International 
Trade Relations (BITR) under the DTI also maintains desks for ASEAN and 
APEC concerns~ 
The Philippine Coordinating Committee (PCC) is also 
assigned on JPEPA matters. The Department of Foreign Affairs (DFA) is also 
involved in international relations. 
This measure is a consolidated/substituted bill drafted by the Committees 
on Trade and Commerce, Foreign Relations and Finance during the 14th 
Congress. 
In view of the foregoing, passage of this bill is earnestly sought. 
Senator 


, , 
• r 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No.11 a 4 
'stnnb 
("if,;, 0' 1~.;!>m.I .. ,. 
'13 
AUG 29 A1O:29 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
ESTABLISHING A FRAMEWORK FOR RESPONSIBLE AND ACCOUNTABLE-
TRADE 
NEGOTIATIONS 
BY 
CREATING 
THE 
PHILIPPINE 
TRADE 
REPRESENTATIVE OFFICE, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHERPURPOSES 
Be it enacted bY the Senate and the House Of Representatwes Of the Phlfippfnes 
in Congress assembled' 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1. Title. - This Act shall be known as the H Accountability in 
International Trade Negotiations Law of the Philippines". 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the 
State to pursue an international trade policy that serves the general welfare, 
promotes· and -supports· domestic -agriculture and -industry-, and -pursues· national· 
interest For this purpose, and pursuant to the power of Congress to regulate 
commerce, the State shall ensure that a single office shall, with competence and 
accountability, lead, direct and coordinate government agencies towards the 
formulation of coherent and cohesive policies, positions and measures with 
respect to international trade engagements, relations and negotiations. 
SEC. 3. Definition of Terms. -
a) "Commerce" refers to the entire- range of activities- connected with the 
production, manufacturing, accumulation, gathering, mining, 
raising, harvesting, exchange or buying and selling of 
something -of economic value such as agricultural products, 
minerals, goods, services, information, debt instruments, 
shares of stock or equity, derivatives, and money. It also 
includes capital formation, either through debt or equity, 
savings, and investments. Finally, it likewise includes the 
obligations, rights, and duties of all economic Entities such 
as 
natural 
persons, 
corporations, 
partnerShips, 
and 
governmental entities; 
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b) "ConsultatiOll mechanism" refers to the means by which stakeholders and 
sectors could participate effectively and meaningfully in the 
governmental process of drawing up our international trade 
policy, and in coming up with all other pOlicies and rules 
affecting all aspects of international trade; 
c) "Fair trade" refers to a trading partnership, based on dialogue, transparency 
and respect, that seeks greater equity in international trade between 
contracting nations; 
d) "Investment" refers to the act of putting money to a business, either by 
directly buying or leasing assets, hiring personnel, and 
entering into a whole gamut of contracts needed to run an 
ongoing concern, or by buying equity in a business -
typically in the form of shares of stock; 
e) "Lega'" refers to the characterization of an act that is not contrary to Philippine 
laws, including international commercial agreements to 
which the Philippines is a party, and the accession of the 
parties to a trade and/or investment agreement; 
1) "Multi-sectoral" refers to a grouping of different sectors of the economy; 
g) "Non-government organizations" refer to non-stock, non-profit corporations 
organized under the laws of the Republic of the Philippines 
doing charitable, educational, religious, social, economic, and 
other not-for-profifendeavors; 
h) "Private sector" refers to the for-profit sector of the economy that is owneu by 
or is composed of private individuals, including natural 
persons, doing business in their personal capacities; 
i) "Research" refers to the study of the potential or actual economic 
implications of a proposed or existing trade agreement and the validation of its 
findings among the stakebolders; 
j) "Sectors" refer to the different economic or commercial groups composed of 
members with substantially common commercial interest, including business, 
labor, peasants, farmers, fisherfolk, consumers, private sector, public sector, 
service sector, and manufacturing sector; 
k) "Stakeholders" refer to persons or groups of persons with legitimate interest in 
commerce or whose economic well-being will be affected by 
any government policy or law affecting commerce - either as 
factors in the production, sale, or distribution of goods and 
services, or as consumers or beneficiaries thereof; 
I) "Trade" refers to the voluntary exchange of goods, services and all things of 
economic value, whether or not across national borders; 
m) "Trade and Investment Agreement" or "International Trade and 
Investment Agreement" refers to an accord whereby two 
(2) or more countries bind themselves to a set of rules that' 
govern the commercial and investment transactions of 
persons originating from any of the parties to the agreement 
When it is just between two (2) countries, it is called a 
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Bilateral Agreement. On the other hand, if it involves more 
than two (2) countries, then it is called a Multilatei'al 
Agreement, 
Regional Agreements are those 
among 
countries 
within 
the 
same 
geographical 
area 
as 
contemplated by the agreement. Plurilateral Agreements are 
specialized agreements included in a multilateral agreement, 
and where the parties have the option of acceding; 
n) . "Trade Dispute" refers to a disagreement between two (2) or more countries 
to a trade agreement that arises when at least one country 
adopts a trade policy measure or takes some action that one 
or more fellow members consider to be a breach of the 
agreement, or a failure to live up to obligations under the 
agreement. 
CHAPTER 2 
CREATION AND FUNCTIONS OF THE PHILIPPINE TRADE 
REPRESENTATIVE OFFICE AND PHILIPPINE TRADE REPRESENTATIVE 
SEC. 4. Creation. - There is hereby created within the Office of the 
President the Philippine Trade Representative Office hereinafter referred to as the 
"PTRO." The PTRO shall be headed by the Philippine Trade Representative who 
shall be appointed by the President, subject to confirmation by the Commission on 
Appointments. , He shall hold a fixed term of six (6) years, shall be entitled to 
receive the same 'allowances as a Chief-of-Mission, and shall have the rank of 
Cabinet Secretary. Further, the PTRO shall have three (3) Deputy Philippine Trade 
Representatives who shall be apPointed by the President. Each Deputy Philippine 
Trade Representative shalt hold office at the pleasure of the President and shall , 
have the rank of Undersecretary. The Deputies shall have a term of six (6) years 
each. The first set of Deputies shall have six-, four-, and two-year terms 
respectively so that, thereafter, a Deputy shall be replaced every two years. They 
can be re-appointed for no more than a second term. 
SEC. 5. Qualifications and Limitations on Appointments. -
a) Qualifications. - The Philippine Trade Representative and Deputy 
Trade Representatives must be natural-born" citizens of the Philippines, and must 
be at least forty (4Q) and thirty-five (35) years of age, respectively, of good moral 
character, unquestionable integrity, and known probity and patriotism, and should 
possess the academic training, experience, and competence in trade policy, trade 
negotiations, business, economiCS, Of law, preferably related to international trade. 
The Philippine Trade Representative and Deputy Trade Representatives 
shall not, during their tenure in office, engage in the practice of any profession, or 
intervene directly3 or indirectly in the management or control of any private 
enterprise which may, in any way, be affected by the functions of their office, nor 
shall they be financially interested, whether directly or indirectly, in any contract 
with the government, or in any franchise, or special privilege granted by the 
government or any subdivision, agency or instrumentality thereof, including 
government-owned or -controlled corporations or their subsidiaries. They shall 
strictly avoid conflicts of interest in the conduct of their office. 
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b) Limitations on Appointments; Disqualifications. No person shall 
be appointed Philippine Trade Representative or Deputy Trade Representative if 
he/she has directly represented, aided,. or advised a foreign entity in any trade 
and/or investment negotiation or trade dispute against the Philippines. 
Likewise, 
the 
Philippine 
Trade 
Representative, 
Deputy 
Trade 
Representatives, and all members of the research and legal staff of the Office of 
the Philippine Trade Representative shall not be allowed to be employed, 
commissioned, or retained by foreign entities, or to do any kind of consultancy or 
related work for foreign clients on trade and investment issues within two (2) years , 
after the expiration or termination of their service with the Office of the Philippine 
Trade Representative. They shall likewise maintain at all times the confidentiality 
of all matters that they have handled during their service with the Office of the 
Philippine Trade Representative. 
SEC. 6. Functions of the Philippine Trade Representative Office. - The 
Philippine Trade Representative Office shall: 
a) Formulate the Philippine trade position based on a national development 
agenda that is a product of regular and meaningful consultation with relevant 
government agencies and private sector stakeholders; 
b) Serve as the prinCipal advisor to the President on international trade policy and 
shall advise the President Qn the impact {)f other policies {)f the Philippine 
Government on international trade; 
c) Negotiate trade and investment agreements on the basis of the Philippine 
Constitution and other laws, and represent the Philippines in all international trade 
negotiations, including, but not limited to, any matter considered under the 
auspIces of the World Trade Organi:Zation, and other regional and bilateral 
commodity and direct investment negotiations: in which the Philippines 
participates; 
d) Monitor and enforce the implementation of Philippine international trade policy, 
including direct investment matters to the extent that they are related to 
international trade policy; 
e) Assert and protect the rights and interests of the Philippines under all bilateral, 
regional and multilateral trade agreements by coordinating quick and decisive 
inter- agency response to specific cases of unfair trade practices and import 
surges; and 
f) Perform such other functions inherent to his functions, and as the President may 
direct. 
SEC. 7. Functions of the Philippine Trade Representative. - The 
Philippine Trade Representative may, for the purpose of carrying out his functions 
in this Act: 
(1) 
Create the organiZational structure of Philippine Trade Representative 
Office consistent with its mandate and functions provided in this Act, 
and according to strategic needs, and review the same regularly; 
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(2) 
Select, appoint, employ, and fix the compensation of the officers and 
employees of the PTRO as necessary, subject to the civil service and 
classification laws; 
(3) 
Employ experts and consultants in accordance with the relevant laws 
and compensate individuals so employed for each day; 
(4) 
Promulgate such rules and regulations as may be necessary to carry 
out the functions, powers and duties vested in him; 
(5) 
Create sectoral and thernatic desks that will receive and facilitate, as 
may be required in this Act, complaints, information and concerns 
pertair~ing to unfair trade practices and import surges; 
(6) 
Consult with national agencies in connection with the performance of 
his functions, subject to Section 17 of this Act; 
(7) 
Call upon and deputize, in times of trade policy formulation and 
negotiation, 
the 
national 
agencies 
and 
its 
personnel, 
and 
corre~pondio9lyuse .the services of the deputized agency, whose 
functions are related to or affect international trade policy, including 
direct investment· matters to the extent that they are related to 
international trade policy; 
(8) 
Enter into and perform .such contracts, cooperative agreements, or 
, other transactions as may be necessary in the conduct of the work of ' 
the PTRO 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; 
(9) 
Accept voluntary and uncompensated services, notwithstanding the 
provisions of the Civil Service Code; 
(10) Adopt an official seal, which shall be judicially noticed; 
(11) Delegate any of his functions, powers and duti.es to officers and 
employees of the PTRO as he may designate; 
(12) Authorize -such successive re-delegations of functions, powers and 
duties to officers and employees of the PTRO as he may deem 
appropriate; and, 
(13) Perform such other functions inherent to his functions, and as the 
President may direct pursuant to this Act. 
SEC. 8. Ex-Officio Positions and Functions of the Philippine Trade 
Representative. - The Philippine Trade Representative shall be entitled to the 
following ex-officio positions and functions: 
(1) Senior representative on any body that the President may establish for 
the purpose of advising the President on overall ~onomic policies in 
which international trade matters predominate; and 
(2) PartiCipant in all economic summits and other international meetings at 
which international trade is a major topic. 
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SEC. 9. Functions of Deputy Philippine Trade Representatives, - Each 
Deputy Philippine Trade Representative shall have as his principal function the ' 
cQnQjJl1t ()f trllg~ n~g()tillti()ns llngElf thi!) Mt ang !)h",11 havE:) !)1l9h other functiqm; as 
tile Philippine Trade Representative may direct. 
CHAPTER 3 
ROLE OF THE PHILIPPINE TRADE REPRESENTATIVE OFFICE IN THE 
COMMITTJ;J;QN TARJFf AND R!;I.;ATt;Q MATTeRS lcTRM) 
--~ 
-
-
-
SEC. 1,0. Membership in the Committee on Tariff and Related Matters. -
The PTRO shall be a member of the Committee on Tariff and Related Matters 
(CTRM) created under Section 6 of Executive Order No, 230 dated 22 July 1987 
on Reorganizing the National Economic and Development Authority, 
SEC. 11. Amendment to Structure and Functions of the CTRM - The 
existing Committee on Tariff and Related Matters (CTRM), created under Section 
6 of Executive Order No, 230 dated 22 July 1987 on Reorganizing the National 
Economic and Development Authority, shall henceforth function as follows: 
,a) 
Philippine T[ade Representative Office (PTRO) shall ,be .the only 
Chainman of the CTRM with the National Economic Development 
Authority (NEDA) as the Vice-Chairman of the Committee; 
b) 
PTRO shall be the chair of all the sectoral subcommittees under the 
Committee; 
c) 
PTRO shall assume or delegate where the technical staff/secretariat of 
the Committee and all its subcommittees shall be based; and 
d) 
Transfer the CTRM function to advise the President and NEDA Board 
on Tariff and related matters and on the, effects on the country of 
y~ri9llsint~rnati9nalc:lf;ly~19PIl'l!;lnts, ts> .tIJe PTR9, 
SEC. 12. Membership in the NEDA Board, - The Philippine Trade 
Representative shall be an additional member of the NEDA Board, which is 
created under Executive Order No. 230. The Philippine Trade Representative shall 
have the same rights and obligations as all the other members, 
CHAPTER 4 
ORGANIZATION, MANAGEMENT AND ADMINISTRATION OF THE 
PHILIPPINE TRADE REPRESENTATIVE OFFICE 
SEC. 13. Organization of the Philippine Trade Representative Office. -
Pursuant to the provisions of this Act and to function effectively, the Philippine 
Trade Representative Office shall be internally supported by a Trade Research 
Division and a Legal Services Division, 
6 


SEC. 14. Trade Research Division. The Trade Research Division under 
the PTRO shall have the following specific functions and responsibilities: 
a) 
Generate, maintain, and update recordslfiles of comprehensive 
national and international trade statistic, tariff and non-tariff measures, 
and investment- related data; 
b) 
Conduct sectoral and macro level impact assessment and/or potential 
effects of the country's trade negotiating positions or an eventual trade 
agreement and validate such studies; 
c) 
Provide the general public access to trade data and information and 
other relevant documents through online databases, journals, 
publications, etc. 
d) 
Collaborate 
with 
government 
and 
non-government 
research 
institutions in research concerning trade and investments policies and 
programs in relation to the national development program; 
e) 
Tap the foreign trade· service corps to get market intelligence , 
information with regard to commercial, industrial and general economic 
conditions, as well as non- economic conditions affecting Philippine 
products both in the export and domestic markets; and 
f) 
Perform other functions as may be provided by law or assigned by the 
Trade Representative or Deputy Trade Representative. The PTRO 
shall als() concjllqt, or facilitate the qonduct of, trainings and courses 
for the benefit of the technical staff of the PTRO in order to build, 
improve, and enhance their capacity and competence in trade 
negotiations. 
SEC. 15. Legal Services Division. - The PTRO shall have a Legal 
Services Division with the following functions and responsibilities: 
a) Provide legal advice to the. PTRO, including legal advice on trade and 
investment negotiations; 
b) Interpret laws and rules affecting the operation ofthe PTRO; 
c) Prepare contracts and instruments to which the office is a party, and 
interpret p~ovisions of contracts covering work performed for the office by 
private entities; 
d) Assist in the promulgation of rules governing the activities of the office; 
~) Pr~par~ C()mm~nt§ Qn prqpq§ed legislation concerning the office; 
f) Assist the Solicitor General in suits involving the office or its officers or 
employees, .or act as their principal counsel in all actions taken in their 
official capacity before judicial or administrative bodies; 
g) Assist the office in ensuring that the rights and interests of the Republic of 
the Philippines are protected. In the WTO agreements, other multilateral 
trade, regional, multilateral and bilateral trade and investment agreements, 
and ensure that counterpart countries comply with their obligations in the 
agreements; 
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h) Assist, unless deputized to represent, the Philippine Trade Representative 
appearing as counsel of the Republic of the Philippines in any dispute 
set.tlem.~nt bef()re the VVTQ, other multiiateri!1 trage l'lgrElement!!, qilateral 
trade agreements, or in any other suit involving international trade; and 
i) Perform such other functions as may be directed by the PTRO. 
SEC. 16. Inter-Agency and Private Sector Coordination on Unfair 
Trade Practices. - In carrying out his functions and responsibilities with respect to 
unfair trade practices and import. Surges, the Philippine Trade Representative 
shall: 
a) 
Coordinate the use of inter-agency resources to identify, address, and 
resolve specific cases of unfair trade practice; 
b) 
Identify and refer to the appropriate department or agency of the 
national government for action any information identified in the report 
required under Section 24 (b) hereof, or report other such information 
that establish or may show an unfair trade practice because it is either: 
considered to be inconsistent with the provisions of any trade 
agreement, or has a significant adverse impact on Philippine 
commerce, including on domestic firms or industries that are either too 
small or financially weak to initiate proceedings under the trade laws; 
c) 
Identify on a biennial baSiS, Philippine government policies and 
practices that, if engaged in by a foreign government, might constitute 
unfair trade practices under Philippine law; 
d) 
Designate the Legal Services Division of the PTRO to collaborate with 
relevant agencies and stakeholders to' identify, address, and resolve 
specific unfair trade practices identified by the Committee; and 
e) 
Perform such other acts inherent to the foregoing. 
CHAPTER 5 
SPECIAL POWERS OF THE PHILIPPINE TRADE REPRESENTATIVE OFFICE 
SEC. 17. Issuance of Compulsory Processes. - Pursuant to Section 6 of 
this Act, the Philippine Trade Representative Office, in aid of trade policy 
formulation and negotiation, shall have the power and authority to invite or 
summon by subpoena ad testificandum any public official, private citizen or any 
other person to testify before it, or require any person by subpoena duces tecum 
to produce before it such records, reports, documents or other materials as it may 
require. There shall be a compliance within 30 days to the subpoena issued 
otherwise any failure to comply is punishable under Section 28 of this Act. 
SEC. 18. File Cases Against Violators. - The PTRO shall have the 
authority to file cases and other appropriate legal actions to further its mandate 
unc!er 
~ecti()n 6 (d) and (e), and collaborate, if necessary, with relevant 
government agencies and stakeholders in order to protect the rights and interests 
of the Philippines in relation to trade and trade-related investments. 
8 


C~fAPTER6 
PRIVATE SECTOR PARTICIPATION PRIVILEGES AND OBLIGATIONS 
SEC. 19. The Multi-Sectoral Advisory Committee. - There is hereby 
created a Multi- Sectoral Advisory Committee, hereinafter referred to as "MSAC". 
Pursuant to the provisions of the Act particularly this Chapter, it shall function as 
follows: 
a) Commitif)e Consultation" The Philippine Trade Representative shall sflek 
information and advice from representatives of the private sector and non-
government organizations on trade and investment policy based on a 
national development agenda aimed at balancing the interests of various 
stakeholders with respect to: 
1) negotiating objectives and bargaining positions before entering into a 
trade and investment agreement; 
2) the operation, implementation, and monitoring of any trade and 
investment agreement once entered into; 
3) trade remedies, dispute settlements; non-compliance andlor violations to 
any trade and investment agreement; and 
4) other matlers arising in connection with the development, implementation 
and administration of the trade and investment policy. 
b) Membership and Organization - The Committee shall consist of not more 
than 20 members consisting of representatives of industry, agriculture, labor, 
sma.1I business, service industries, retl;lilers, and consumers. The Committee 
shail be broadly representative of key economic sectors and groups affected 
by trade. The Philippine Trade Representative shall preside over the 
Committee, which will meet as needed at the call of the Committee 
Chairman or the Philippine Trade Representative depending on various 
factors such as the level of activity of trade negotiations. Members of the 
Committee and Subcommittees shall be appointed by the Philippine Trade 
Representative 
upon 
the 
endorsement of various 
non-government 
organizations and stakeholders. Members of the committee shall serve 
without either compensation or reimbursement of expenses. 
c) Sub-sectoral Advisory Committees - Sub-sectoral advisory committees shall 
be defined by the Philippine Trade Representative for trade and investment 
policy formulation and negotiations. These Committees shall be broadly 
representative of the key sectors and groups of the economy, particularly 
with respect to those sectors and groups which are affected by trade and 
shall consist of representatives of industry, academe, agriculture, fisheries, 
labor. small business, s_ervice industries. retailers, consumer interest and 
other stakeholder groups. 
d) Committee Meetings - The PTRO shall call for- a regula~ meeting of MSAC 
during the First and Third Quarter of the year; Provided. that a notice be 
given to its members at least two (2) weeks prior to the scheduled MSAC 
meeting, and may call for special meeting as may be necessary. 
SEC. 20. Duties and Functions of the Multi-Sectoral Advisory 
Committee. - The Committee shall have the primary duty and function to: 
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a. Provide the Philippine Trade Representative overall policy advice on trade 
and trade-related matters; 
b. Provide technical support to the Philippine Trade Representative by 
drawing upon the knowledge and expertise of its members; 
c. Prior to any trade negotiation, participate in the development of the 
negotiation objectives and bargaining positions of the country and at the 
concllJlljoon of n~gptiqtiQn~ for ~ltch trade" agreement entered into, pfovicte a 
re"port to the Philippine Trade Representative to form part of the latter's 
report to the President and Congress, pursuant to Section 5(g) hereof. The 
report of the Committee shall include an assessment and evaluation of 
whether and to what extent the agreement promotes Philippine economic 
interest and achieves the applicable overall and principal negotiating 
objectives setforth; and, 
d. Recommend to the Philippine Trade Representative the participation of 
private sector representative to accompany the Philippine delegation In an 
observer capacity in trade negotiations. All expenses incurred by the private 
sector representative shall be for the account of the representative or 
his/her organization. In order to carry out the foregoing functions, the 
Philippine Trade Representative shall identify and accredit groups or 
nEltl.ltorkl! Qf local ind411trial and agricultural proc:lupers anc! exporters whose 
assistance may be availed of. Members of the Multi-sectoral· Advisory 
Committee shall serve without either compensation or reimbursement of 
expenses. 
SEC. 21. Confidentiality Agreemen~ - Members of the Multi-seotoral 
Advisory Committee and its Sub-committees shall: 
a) 
Enter into a confidentiality agreement with the PTRO; 
b) 
Comply with other requirements established by the PTRO to protect 
from unauthorized disclosure all classified information, and all 
information relating to trade policy formulation and negotiation. 
SEC. 22. The Philippine Trade Representative Office in relation to the 
Multi-Sectoral Advisory Committee. - The Philippine Trade Representative shall 
<11~o perform the fQllowing functions on t~ Multi-~eqtoral Ac!vi~ry Gornmittee: 
a) Have the responsibility to approve and set the agenda for all 
MultiseGtoral Advisory Committee. meetings; 
b) Provide clerical and other necessary staff support for the Multi-sectoral 
Advisory Committee meetings; and, 
c) Call the Multi-sectoral Advisory Committee to meet depending on 
various factors such as the level of activity of trade negotiations. 
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CHAPTER 7 
FINAL PROVISIONS 
SEC. 23. Joint Congressional Oversight Committee on International 
Trade Agreements. - There shall be a Joint Congressional Oversight Committee 
on International Trade Agreement to which the PTRO shall regularly report to 
ensure concurrenoe and authority regarding negotiating mandate and parameters, 
and shall comply immediately to any order of the Joint Congressional Oversight , 
Committee. The Oversight Committee shall be composed of five (5) members from 
the Senate, which shall include the Senate President, and the Senate Majority and 
Minority Floor Leaders, and five (5) members from the House of Representative, 
whioh shall include the Speakef of the House, and the Majority and Minority Floor 
Leaders. The Oversight Committee shall conduct a periodic review and evaluation 
of the performance of the PTRO, including its officials, every three (3) years. An 
independent panel composed of experts to be appointed by the Oversight 
Committee shall review the activities and performance of the PTRO and shall 
make recommendations, based on its findings, to the Oversight Committee. The 
independent panel of evaluators shall likewise conduct· consultations with 
stakeholders in the conduct of the review. 
SEC. 24. Reportorial Requirements. - The PTRO shall comply with the 
following: 
a.) Report to Congress and to the Multi-Sectoral Advisory Committee as 
herein created any intention to negotiate. Any economic treaty, be it 
bilateral, regional or multilateral. At the minimum, the report shall 
contain the subject matter for negotiations and the general objectives 
of the government. The PTRO shall update Congress and the Multi-
sectoral Advisory Committee, whenever practical, on the negotiations, 
including the offers and counter-offers of all the parties and shall also 
notify Congress and the Multi2sectoral Advisory Committee of any 
tentative or·fjnalagreement-oHhe parties. 
b.) The Philippine Trade Representative shall submit a bi-annual report 
directly to the President, Congress and the Multicsectoral Advisory 
Committee regarding the implementation, operation and effectiveness 
of any trade and investment agreement entered into including the 
status· of ongoing trade and investment negotiations, in which the 
Philippines participates. 
SEC. 25. Transfer of Functions. - The functions of the Bureau of 
International Trade Relations and other related positions under the Department of 
TrClq~ anq Inql,lst/y, Attach~f? and PermCinent fI(1ilif?iqn to the WTO, Ass.oqiCition of 
South East Asian Nations (ASEAN) and the United Nations International 
Organization (UNIO) are hereby transferred under the direct control and 
supervision of the PTRO. The foregoing transfer of powers and functions shall 
include all applicable funds and appropriations, records, equipment, property, and 
personnel as may be necessary. 
SEC. 26. Appropriations. - The sum of One Hundred Forty-Five Million 
Pesos (Php 145,000,000.00) is hereby authorized to be appropriated to the PTRO 
for the purposes of carrying out its functions for the first fiscal year after the 
effectivity of this Act For each fiscal year thereafter, there is· authorized to be 
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appropriated to the PTRO such additional sums as may be provided by law for the 
salaries of its officers and employees to reflect pay rate changes made in 
accordance with the Salary Standardization Act, and for other purposes as may be 
appropriated. 
SEC. 27. Implementing Provisions, - Within 60 days from the effectivity of 
this Act, the President shall appoint the Philippine Trade Representative, together 
with his Deputies. The PTRO shall, in consultation with the Departments of Trade 
and Industry, Agriculture, and Foreign Affairs and the National Economic 
Development Authority, issue the implementing rules and regulations necessary to 
implement the provisions of this Act, 180 days from the date of appointment of the 
Philippine Trade Representative. 
SEC. 28. Provision on Administrative Fines and Penalties. -
a.) 
Penalty for Non-compliance on Issuance of Compulsory Processes -
Any person or entity who shall fails to comply to the subpoena issued 
by the PTRO within the 30-day deadline shall suffer the penalty of 
imprisonment for a period of not less than six (6) months nor more 
than one (1) year or shall be imposed a fine of not less that One 
hundred thousand pesos (Php100,000.00) nor more than Five 
hundred thousand pesos (Php500,000.00), at the discretion of the 
court. 
b.) 
Penalty for Violation of Confidentiality Agreement - Any person or ' 
entity who shall violate the confidentiality agreement under this Act 
shall suffer the penalty of imprisonment for a period of not less than six 
(6) months nor more than one (1) year or shall be imposed a fine of 
not less that Two hundred fifty thousand pesos (Php250,OOO.00) nor 
more than Five hundred thousand pesos(Php500,OOO.OO), at the 
discretion of the court. The PTRO shall have the power to remove the 
membership in the MSAC of any member in violation of this provision. 
c.) 
Power to Impose Administrative Fines and Penalties - After due notice 
and hearing, the Philippine Trade Representative shall have the power 
to impose administrative fines against any person, organizations, or 
any other entity, in such amount as it may deem reasonable, which in 
no case shall be less than Fifty thousand pesos (PhpSO,OOO.OO) nor 
more than Five million pesos (Php5,000,000.OO) for violations of any 
provisions under this Act. 
SEC. 29. 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. 30. Repealing Clause. - All laws, decrees and orders or parts thereof 
inconsistent herewith are deemed repealed or modified accordingly, 
SEC. 31. effectivity. - This Act shall take effect fifteen (1S) days following 
its publication in a newspaper of general circulation in the Philippines. 
Approved, 
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