FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
S. No. 
p” 
Introduced by Senator Manuel “Lito” M. Lapid 
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 WTO, 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-related 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 requested. 
n 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
) 
1 ’  ! 
OF THE PHILIPPINES 
First Regular Session 
1 
S E N A T E  
S. No. 
Introduced by Senator Manuel “Lito” M. Lapid 
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: 
SECTION 1. 
Short Title. - This Act shall be known as the “Charter of the 
Office of the Philippine Trade Representative”. 
SEC. 2. 
Declaration of Policy. - It is hereby declared the policy of the State 
to pursue a trade policy that serves the general welfare and utilizes all forms and 
arrangements of exchange on the basis of equality and reciprocity. For this purpose, the 
State shall ensure that a single office shall, with competence, coordinate all government 
policies, positions and measures with respect to international trade relations and 
negotiations. 
SEC. 3. 
Creation. - There is hereby created within the Office of the 
President the Office of the Philippine Trade Representative, hereinafter referred to as 
the “Office”. 
The Office shall be headed by the Philippine Trade Representative who shall be 
appointed by the President, subject to confirmation by the Commission on 
Appointments (CA). 
The Philippine Trade Representative shall hold office at the pleasure of the 
President, shall be entitled to receive the same allowances as a chief of mission, and 
shall have the rank of Ambassador Extraordinary and Plenipotentiary. 
There shall be in the Office three (3) Deputy Philippine Trade Representatives 
who shall be appointed by the President, subject to confirmation by 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. 
Limitation 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 Responsibilities of the Philippine Trade 
Representative. The Philippine Trade Representative shall: 
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; 
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; 
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; 
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; 
Act as the principal spokesman of the President on international trade; 
Report directly to the President and Congress regarding, and be 
responsible to the President and Congress for the administration of trade 
agreement programs; 


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 agreement programs; 
Be responsible for making reports to Congress with respect to matters 
referred to in sub-paragraphs (c) and (9; 
Be chairman of the interagency committee on Trade-Related Investment 
Matters (TRIMS); and 
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 Representative. - 
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. 
SEC. 8. 
Functions Of Deputy Philippine Trade Representatives. - Each 
Deputy Philippine Trade Representative shall have as hislher principal function the 
conduct of trade negotiations under this Act and shall have such other functions as the 
Philippine Trade Representative may direct. 


SEC. 9. 
Inter-Agency Coordination. - In carrying out his functions and 
responsibilities with respect to unfair trade practices, the Philippine Trade 
Representative shall: 
coordinate the application of interagency resources to specific unfair trade 
practice cases; 
identify, and refer to the appropriate department or agency of the national 
government for consideration with respect to action, 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. 
identify practices having a significant adverse impact on Philippine 
commerce that the attainment of Philippine negotiating objectives would 
eliminate; and 
identify, on a biennial basis, those Philibpine 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) 
b) 
c) 
the Department of Agriculture. 
the National Economic Development Authority; 
the Department of Trade and Industry; and 


The Philippine Trade Representative may, for the purpose of carrying out his 
functions in this section: 
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; 
employ experts and consultants in accordance with laws and compensate 
individuals so employed for each day; 
promulgate such rules and regulations as may be necessary to carry out 
the functions, powers and duties vested in him; 
utilize, with their consent, the services, personnel and facilities of other 
national agencies: 
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; 
accept voluntary and uncompensated services, notwithstanding the 
provisions of the Civil Service Code; 
adopt an official seal, which shall be judicially noticed; and 
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 agreement programs of the 
Philippines, draw upon the resources of, and consult with, national agencies in 
connection with the performance of his functions. 


SEC. IO. 
Transfer of Functions, - The Foreign Trade Service Corps 
Coordinating Office, the Bureau of Export Trade Promotion and the Bureau of 
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 
Industry (DTI). 
SEC. 11. 
Appropriations. - 
The 
sum 
of 
Ten 
Million 
Pesos 
(Php10,000,000.00) is hereby authorized to be appropriated to the Office for the 
purposes of carrying out its functions. Thereafter, there is hereby 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. 
Implementing Rules and Regulations (IRR). - 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. 
Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in two (2) national newspapers of general circulation. 
Approved,