Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City. Metro Manila
SIXTEENTH CONGRESS

First Regular Session *

House Bill No.__ 1690

Introduced by Hon. Karlo A. B, Nograles

EXPLANATORY NOTE

Globalization has re-shaped the world economy in a manner that is so expansive
rendering national boundaries useless. It is the objective of each nation to penetrate other
countries’ markets and optimize the benefits from world trade. The Philippines is laggard in
terms of economic growth, Investments are much less than what our neighbours generate.

Over the years, the Philippines has entered into 37 Bilateral Investment Promotion
and Protection Agreements, 38 Bilateral Agreements and other multilateral and regional trade
agreements while other agreements are still in the process of negotiations. The combined
impact of all agreements is yet to be appreciated as there is no singular entity principally
responsible for monitoring and more importantly maintaining, a cohesive and coherent trade
policy: vis-a-vis our national interest. With the potential increase in the number of trade
tiations, itis imperative that the Philippines is equipped with the necessary resources and
capability to engage in all trade discussions. More importantly, it is necessary that there is
one institution that effectively formulates and carries out the country’s trade policies in order
for us to efficiently promote our own products and protect our own economy and domestic
market from unfair trade practices. Our country cannot afford to have loose, divergent and
incoherent policy in addressing the demands of intemational trade

To establish coherence, greater predictability, accountability and transparency in trade
and investment policy making. it is imperative to establ:sh a specialized and dedicated agency
and officers that will: .

- Formulate domestic and national priorities

- Come up with final trade positions

- Be responsible for all trade negotiations,

= Coordinate with other branches of government in order to come up with a whole,
cohesive cross-industry trade strategy in accordance to our country’s development
goals, and

= Authoritatively represent the country in all agreements it wishes to enter.

Immediate passage of this bill is therefore eamestly sou

KARLO A. B. NOGRALES


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City. Metro Manila

SIXTEENTH CONGRESS
First Regular Session

1699

House Bill No.

Introduced by Hon. Karlo A. B. Nograles

AN ACT.
CREATING THE PHILIPPINE TRADE REPRESENTATIVE OFFICE, 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. Title. - This Act shall be known as the “Charter of the Philippine Trade
Representative Office”

Sec. 2. Declaration of Policy: ~ \t is hereby declared the policy of the State to pursue
a trade policy that serves the general welfare, creates jobs, ensures food security and rural and
industrial development, among others, and utilizes all forms and arrangements of exchange

‘on the basis of fair trade. Market access_ in itself is not the end goal of trade negotiations,

It is also the declared policy of the State to ensure the right of the people and their
organizations to be duly informed on matters of public concern and the right to effectively

and reasonably participate in economic decision making

Congress has the power to regulate commerce, including commerce with foreign
nations, and has the power to re-organize the bureaucracy in order to make it more responsive
to the needs of all the stakeholders in the Philippine economy and the exigencies of
international economic relations. Any international economic. commercial. or trade
agreement entered into by the Government constitutes regulation of commerce and will affect
the different stakeholders in our economy. Hence, it is essential that any agreement is

harmonized with existing domestic commercial laws and the 1987 Philippine Constitution


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Moreover, Congress, as one of the three (3) branches of the Government. has power
over foreign relations, especially international economic relations. Pursuant to the power of
Congress to regulate commerce, the State shall ensure that a single office shall, with
competence and accountability, direct, formulate, and coordinate the efforts of government
agencies towards formulating cohesive policies, measures, and conduct regular consultations
\with stakeholders on matters pertaining to international trade and investment relations and

negotiations.
Sec. 3. Definition of Terms. -

a) Ambassador refers to a diplomatic official accredited to a foreign sovereign or
government, or to an international organization, to serve as the official representative of the
country. In everyday usage it applies to the ranking plenipotentiary minister stationed in a
foreign capital. The host country typically allows the ambassador control of specific territory
called an embassy. whose territory. staff. and even vehicles are generally afforded diplomatic

immunity from most laws of the host country

b)

institutions that form the basis of a functioning society as opposed to the formal institutions

il Society refers to the totality of voluntary civic and social organizations and

and structures of a state.

©) 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

d) Consultation 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.

e) Fair Trade refers to a trading partnership, based on dialogue. transparency and
respect, that seeks greater equity in intemational trade. It contributes to sustainable

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development by securing and offering better trading conditions to marginalized producers
and workers.

f) 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 concem, or by buying equity in a busines:

sypically in the form of shares of
stock

g) Legal refers to the characterization of an act that is not contrary to law’ and the

accession of the parties to a trade and/or investment agreement
h) Multisectoral refers to a grouping of different sectors of the economy

i) 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-profit endeavors.

i) Private Sector refers to that sector of the economy that is owned by or is composed

of private individuals, including natural persons doing business in their personal capacity

k) 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

stakeholders.

1) 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.

m) 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.

n) Trade refers to the voluntary exchange of goods. services and all things of economic
value, whether or not across national borders

0) Trade and Investment Agreement or International Trade and Investment

Agreement refers to an accord whereby two or more countries bind themselves to a set of

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tules that govern the commercial and investment transactions of persons originating from any
of the parties to the agreement. When it is just between two countries, it is called a Bilateral
Agreement, On the other hand, if it involves more than two countries. then it is called a
Multilateral Agreement, Regional Agreements are those among countries within the same
georgraphical area as contemplated by the agreement. Plurilareral Agreements are
specialized agreements included in a multilateral agreement, and where the parties have the

option of acceding

p) Trade Dispute refers to a disagreement between two 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 considers to be a breach of the agreement, or a

failure to live up to obligations under the agreement

Sec. 4. Creation. - There is hereby created the Philippine Trade Representative
Office, hereinafter referred to as the Trade Office that shall be attached to the Office of the
President

‘The Trade Office shall be headed by the Philippine Trade Representative who shall
shall hold a Cabinet rank and who shall have a fixed term of six (6) years

The Trade Office shall have three (3) Deputy Trade Representatives, each of whom
shall hold the rank of an Undersecretary

‘The Deputies shall have a term of six (6) years each and can be re-appointed for no
more than a second term. Of those first appointed under this Act, one (1) Deputy shall serve
for six (6) years, another Deputy for four (4) years and another Deputy for two (2) years

Within thirty (30) days from the effectivity of this Act, the President shall appoint the
Philippine Trade Representative with the confirmation of the Commission on Appointments.,
together with the Deputy Trade Representatives upon the endorsement of various

stakeholders
Section 5. Qualifications and Limitation on Appointments. -

a) Qualifications. ~ The Philippine Trade Representative and Deputy Trade

Representatives must be natural-born citizens of the Philippines, at least thirty-five (35) vears

of age. with the exception of the Philippine Trade Representative who should be at least forty
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(40) years of age. of good moral character, unquestionable integrity, and known probity and

patriotism, and must have academic training, experience, and competence in busine

‘economics, international trade law and policy or trade negotiations.

The Philippine Trade Representative and Deputy Trade Representatives shall not,
during their tenure in office, engage in the practice of any profession, or intervene directly 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 Govemment, 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 conflict of interest in the conduct of their office.

) Limitations on Appointments: Disqualifications. = No person shall be
appointed Philippine Trade Representative or Deputy Trade Representative if the person 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, the Deputy Trade Representatives, and
all members of the research group and legal team of the Trade Office 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 Trade Office.

Sec. 6, Functions and Responsibilities of the Trade Office. - The Trade Office shall

a) Conduct research and legal studies related to trade and investments that will enhance
trade policy formulation:

b) Obtain, collate and maintain a database that shall include. but not be limited to, trade
and investments statistics, rade and investment -related laws, policies, trade and investments
agreements, and initiatives which have implications on the development of the Philippine
negotiating position in trade and investment agreements, and which shall be accessible to the

stakeholders:


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c) Undertake consultations with stakeholders in all aspects of trade policy formulation
and negotiation. Stakeholders must also be directly involved in formulating positions related
to trade and investment negotiations in line with the nat:onal development agenda

4) Formulate the Philippine Trade position aimed 10 support the achievement of the
economic goals defined in the Constitution that is a product of a regular and meaningful
consultation with relevant government agencies and various civil society stakeholders:

@) Negotiate trade and investment agreements on the basis of the Philippine Constitution
and other laws, and represent the Philippines in all intemational trade negotiations, including,
but not limited to, any matter considered under the auspices of world trade organizations, and
other regional and bilateral commodity and direct investment negotiations in which the
Philippines participates:

) Advise the President and Congress on international trade and investments policies and
their implications on the domestic economy and the impact of domestic policies on
international trade and investments commitments:

g) Assert and protect the rights and interests of the Philippines under all bilateral,
regional and multilateral trade and investment agreements by coordinating quick and decisive
inter-agency response including but not limited to cases of unfair trade practices, import
surges and rules on investment:

h) Provide the necessary staff support to the Mutli-Sectoral and Sub-Sectoral Advisory
Committee and the Inter-Agency Coordinating Committee:

j) Appoint, employ and fix the compensation in accordance with existing compensation
laws of such officers and employees as are necessary and prescribe their authority and duties,
subject to Civil Service Commission laws, rules and regulations,

j) Employ and compensate experts and consultants in accordance with the relevant laws:

k) Promulgate such rules and regulations as may be necessary to carry out the functions,
powers and duties vested herein: :

}) 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: and

m) Adopt an official seal which shall be judicially noticed.


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Sec. 7. Functions of the Philippine Trade Representative. - The Philippine Trade

Representative may, for the purpose of carrying out the functions of the Trade Office:

a) Create the organizational structure of the Trade Office consistent with its mandate and
functions provided in this Act and according to strategic needs, and review the structure
regularly:

b) Head the Trade Office and exercise control and supervision over all its functions,
activities, and its organization:

©) Serve as the chief trade negotiator of the Philippines in intemational trade and
investment agreements. including, but not limited to, the World Trade Organization, regional,
bilateral and plurilateral negotiations. in which the Philippines participates, and shall be
responsible for the conduct of such:

d) Create sectoral and thematic desks that will receive and facilitate referral to
appropriate agencies of complaints, information and concems pertaining to trade and
investment matters:

©) Chair the Inter-agency Coordinating Committee on international trade and
investments:

) 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

g) Coordinate with national agencies in the performance of functions. including the right
to issue compulsory processes pursuant to Sec. 15 of this Act:

fh) Call upon and deputize, in times of trade policy formulation and negotiations, the
national agencies and their personnel, and correspondingly use the services of the deputized
agency, whose functions are related to or affect international trade policy, including direct
investment matters to the extent that these are related to international trade policy:

i) Co-chair the Multi-Sectoral Advisory Committee in its regular and special meetings:
and

|) Perform such other functions inherent to the functions of the Philippine Trade

Representative 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:


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) Senior representative on any body that the President may establish for the purpose of
advising the President on over-all economic policies in which international trade
‘matters predominate; and

b) Participant in all economic summits and other international meetings in which

international trade is a major topic

Sec. 9, Functions and Duties of the Deputy Trade Representatives. ~ The Deputy Trade
Representatives shall have as principal function the conduct of trade negotiations under this
‘Act and shall have such other functions as the Philippine Trade Representative may direct, to

wit

2) Lead the negotiations for their respective sectors and/or areas of concern:

b) Convene and chair the Sub-Sectoral Advisory Committees and the Inter-Agency
Coordinating Sub-Committee for their respective sectors and/or areas of concern:

©) Ensure proper coordination among the various government agencies involved in their
specific sectors of concem and harmonize conflicting negotiating positions:

4d) Prepare sector-specific proposals and negotiating positions and strategies: and

e) Perform all other functions as may be delegated by the Philippine Trade
Representative, or as may be required by the nature or exigencies of their foregoing

functions and responsibilities.

Sec. 10. Inter-Agency Coordinating Committee and Sub-Committees. - In connection
With the performance of the functions. the Philippine Trade Representative shall, to the extent
necessary for the proper administration and execution of the trade and investment agreements

of the Philippines. draw upon the expertise of, and consult with national agencies.

‘The Philippine Trade Representative shall consult with concerned agencies and any other
agency on trade and investment policy issues, without prejudice to the exercise by the
Bangko Sentral ng Pilipinas of its authority as an independent central monetary authority
under the Constitution and Republic Act No. 7653 or the New Central Bank Act, All agencies
consulted by the Philippine Trade Representative shall participate actively, cooperate fully

and promptly provide to the Philippine Trade Representative all documents and information

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Further, there is hereby created Inter-Agency Sub-Committees to provide inputs and
support to the Deputy Trade Representatives.

Sec. 11. Membership in the NEDA Board. - The Philippine Trade Representative shall
be a member of the National Economic Development Authority (NEDA) Board which was
created under Executive Order No. 230. The Philippine Trade Representative shall have the

‘same rights and obligations as all the other members of the Board.

Sec. 12. Organization of the Trade Office. - Pursuant to the provision of this Act and to
function effectively, the Philippine Trade Representative shall be internally supported by a
Trade Research, Data Collection, Analysis and Dissemination Service, and a Legal Service.

Both Services shall comprise the Trade Office
Sec 13. The Trade Research, Data Collection, Analysis and Dissemination Service. -

The Trade Research, Data Collection, Analysis and Dissemination Service under the

Trade Office shall have the following specific functions and responsibilities:

a) Improve and strengthen the capacity of the Trade Office on research, data collection,
analysis, and dissemination of trade and investments statistics, laws and policies, agreements
and other related information

b) Generate, maintain, and update records/files of comprehensive national and
international trade statistic, tariff and non-tariff measures, and investment-related data:

©) Conduct sectoral and macrolevel impact assessment and/or potential effects of the
country’s trade negotiating positions or an eventual trade agreement and validate such
studies:

d) Provide the general public access to trade data and information and other relevant
documents through online databases, journals, publications, etc.;

©) Collaborate with government and non-government research institutions in research
concerning trade and investments policies and programs in relation to the national
development program:

f) 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:


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2) Perform other functions as may be provided by law or assigned by the Trade
Representative or Deputy Trade Representative; and

h) Conduct or facilitate the conduct of trainings and courses for the benefit of the
technical staff of the office and other government personnel directly or indirectly engaged in
trade and investment policy work in order to build. improve and enhance the capacity and

competence in trade and investment negotiations.

Sec 14. The Legal Service - The Legal Service shall have the following functions and

responsibilities

a) Provide legal advice to the Trade Office, including legal advice on trade and
investment negotiations:

b) Interpret laws and rules affecting the operation of the Trade Office:

©) Prepare contracts and instruments to which the Trade Office is a party, and interpret
provisions of contracts covering work performed for the Office by private entities:

d) Assist in the promulgation of rules governing the activities of the Trade Office:

e) Prepare comments on proposed legislation conceming the Trade Office:

f) Assist the Solicitor General in suits involving the Trade 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:

9) Assist the Trade Office in ensuring that the rights and interests of the Republic of the
Philippines are protected in the World Trade Organization agreements, other multilateral
trade. regional, plurilateral and bilateral trade and investment agreements: and ensure that the
counterpart countries comply with their obligations in the agreements;

hh) Represent the Republic of the Philippines in any dispute settlement before the World
Trade Organization, other multilateral trade agreements, bilateral trade agreements, or in any
other suit involving intemational trade: and 7

i) Perform such other functions as may be directed by the Philippine Trade

Representative

Sec. 15. Issuance of Compulsory Processes. - Pursuant to Section 7 of this Act, the Trade
Office. in aid of trade policy formulation and negotiations, 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

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before it such records, reports, documents or other materials as it may require. There shall be
a compliance within thirty (30) days to the subpoena issued: otherwise any failure to comply
is punishable under Sec. 24 of this Act

Sec, 16, Filing of Cases Against Violators. - The Trade Office shall have the authority to
file cases and other appropriate legal actions to further its mandate under Section 7 (f) and (g)
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,

Sec. 17. The Multi-Sectoral Advisory Committee. - There is hereby created a Multi-
Sectoral Advisory Committee, hereinafter referred to as MSAC.

‘The MSAC shall be composed of representatives of industries, agriculture, labor, small
business, service industries, retailers, and consumers and shall be broadly representative of

key economic sectors and groups affected by trade

Members of the MSAC and Subcommittees shall be appointed by the Philippine Trade
Representative upon the endorsement of various non-government organizations and
stakeholders. Members of the MSAC shall serve without either compensation or

reimbursement of expenses

The MSAC will meet as needed at the call of the MSAC Chairman or the Philippine
Trade Representative depending on various factors such as the level of activity of trade

negotiations,

Sec. 18. Duties and Functions of the MSAC. ~ The MSAC shall provide information and
advice to the Philippine Trade Representative on trade and trade-related matters towards the
achievement of the economic goals defined in the 1987 Constitution that are aimed at

balancing the interest of these various stakeholders with respect to:

a) negotiating objectives and bargaining positious before entering into a trade and
investment agreement:
b) the operation. implementation, and monitoring of any trade and investment agreement

once entered into.

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¢) trade remedies. dispute settlements. non-compliance and/or violations to any trade and
investment agreement: and

d) other matters arising in connection with the development. implementation and
administration of the trade and investment policy

In addition, the MSAC shall

a) Provide technical support to the Philippine Trade Representative by drawing upon the

knowledge and expertise of the members;

b) Prior to any trade negotiations, participate in the development of the negotiation
objectives and bargaining positions of the country and at the conclusion of negotiation for its
trade agreement entered into, provide a report to the Philippine Trade Representative to form
part of the latter’s report to the President and Congress, pursuant to Sec.6 ({) hereof, The
report of the MSAC shall include an assessment and evaluation of whether and to what extent
the agreement promotes Philippine economic interests and achieves the applicable overall
and principal negotiating objectives set forth:

©) Be allowed to accompany and advise the Philippine delegation in trade and

investment negotiation missions; and

4) Recommend to the Philippine Trade Representative the participation of private sector
representative to accompany the Philippine delegation in an observer capacity in trade

negotiations

Sec. 19. Meetings, Agenda and Staff Support. - The Philippine Trade Representative
shall

a) Preside over the MSAC. which will meet as needed at the call of the MSAC Chairman
or the Philippine Trade Representative depending on various factors such as the level of
activity of trade negotiations:

b) Call for a regular meeting of MSAC during the First and Third Quarter of the year and
may call for special meeting as may be necessary depending on various factors such as the
level of activity of trade negotiations.

©) Approve and set the agenda for all MSAC meetings: and

d) Provide Secretariat and other necessary staff support for the MSAC meetings.

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Sec. 20. Sub-Sectoral Advisory Committee. - There. is hereby created a Sub-Sectoral
Advisory Committee, hereinafter referred to as “SSAC” to be defined by the Philippine

Trade Representative for trade and investment policy formulation and negotiations.

The SSAC 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,

service industries, retailers, consumer interest and other stakeholder groups.

Members of the MSAC and SSAC 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. ‘
‘The Chairperson of the MSAC and SSAC shall be elected by its members.

Sec. 21 Confidentiality Agreement. - The members of the MSAC and its Subcommittees
shall.

a) Enter into a confidentiality agreement with the Trade Office: and

b) Comply with other requirements established by the Trade Office to protect from
unauthorized disclosure all classified information, and all information relating to trade policy
formulation and negotiation

Sec. 22, Joint Congressional Oversight Committee on Trade and Investment
Matters. - There shall be a Joint Congressional Ovérsight Committee on Trade and
Investment matters, hereinafter referred to as the “Congressional Oversight Committee”, to
which the Trade Office shall regularly report to ensure concurrence 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, the Senate majority
and Minority Leaders. and five (5) members from the House of Representatives which shall
include the Speaker of the House and the Majority and Minority Leaders

The Congressional Oversight Committee shall conduct a periodic review and
evaluation of the performance of the Trade Office. including its officials, every three (3)

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years. An independent panel composed of experts to be appointed by the Committee shall
review the activities and performance of the Trade Office and shall make recommendations.
based on its findings, to the Congressional Oversight Committee. The independent panel of
evaluators shall likewise conduct consultations with stakeholders in the conduct of the

review
Sec, 23, Reportorial Requirements. - The Trade Office shall comply with the following,

a) Report to Congressional Oversight Committee and to the MSAC 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 Trade Office shall update the Congressional Oversight
Committee and the MSAC on the negotiations, including the offers and counter-offers of all
the parties and shall also notify the Congressional Oversight Committee and the MSAC of
any tentative or final agreement of the parties:

b) Report at least twice a year and as may be directed by the President or the
Congressional Oversight Committee and as may be requested by MSAC on the developments

of any intemational trade and investment negotiations and/or Agreements: and

¢) Submit a bi-annual report directly to the President, the Congressional Oversight

Committee and the MSAC regarding the implementation, operation and effectiveness of any

trade and investment agreement entered into inclu

ng the status of ongoing trade and

investment negotiations, in which the Philippines participates.
Sec. 24. Administrative Fines And Penalties. -

a) Non-compliance on Issuance of Compulsory Processes ~ Any person or entity who
fails to comply to the subpoena issued by the Trade Oftice ‘within the thirty (30) day deadline
shall suffer the penalty of imprisonment for a period of not less than six (6) months and not
more than one (1) year or shall be imposed a fine of not less than One Hundred Thousand
Pesos (PH100,000) and not more than Five Hundred Thousand Pesos (PH500,000), at the

discretion of the Court.

b) Violation of Confidentiality of Agreement ~ Any person or entity who shall violate
the confidentiality of agreement under this Act shall suffer the penalty of imprisonment for a
period of not less than six (6) months and not more than one (1) year or shall be imposed a

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fine of not less than Two Hundred Fifty Thousand Pesos (PH250,000) and not more than Five
Hundred Thousand Pesos (PH500,000), at the discretion of the Court. The Trade Office shall
have the power to remove any member who violates this provision from membership in the
MSAC

©) Other Violations ~ Afier due notice and hearing, the Philippine Trade Representative
shall have the power to impose administrative fines against any person, organization, or any
other entity, in such amount as it may be reasonable which in no case shall be less than Fifty
‘Thousand Pesos (PH50,000) and not more than Five Million Pesos (PH5,000,000) for any
violation of any provision under this Act.

Sec. 25. Transfer of Functions. ~ The functions of the Bureau of International Trade
Relations under the Department of Trade and Industry, Attaches and Permanent Mission to
the WTO, Association of Southeast Asian Nations (ASEAN) and United Nations
International Organization (UNIO), and the trade negotiating and policy-making functions of
the Tariff and Related Matters Committee (TRMC) are hereby transferred to the Trade
Office

The foregoing transfer of powers and functions shalt include all applicable funds and

appropriations, records, equipment, property. and personnel as may be necessary

Sec, 26. Transitory Provision - The Tariff and Related Matters Committee (TRMC)
created under Section 6 of Executive Order No. 230, series of 1987, together with the
Technical Committee on WTO Matters shall continue to function for six (6) months or until

the Trade Office is set up whichever comes earlier, after which they shall cease to function,

Sec. 27. Implementing Rules and Regulations, - The Trade Office shall, in consultation
with the Department of Trade and Industry, the Department of Agriculture, and the
Department of Foreign Affairs and the NEDA, issue the rules and regulations necessary to
implement the provisions of this Act sixty (60) days from the date of appointment of the

Philippine Trade Representative

Sec. 28. Appropriations. - The amount necessary to implement the provisions of this Act
shall be charged against the current year's appropriations of the Bureau of International Trade
Relations under the Department of Trade and Industry, Attaches and Permanent Mission to
the WTO. ASEAN and UNIO. the TRMC and other concerned agencies. Thereafter. such

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Sums as may be necessary for its continued implementation shall be included in the annual
General Appropriations 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, rules and regulations and other issuances
inconsistent with the provisions of this Act, including Section 6 of Executive Order 230
series of 1987 and relevant provisions of Executive Orcer No. 133 series of 1987 are deemed
modified, revoked or repealed accordingly :

Sec. 31. Effectivity Clause. - This Act shall take effect fifteen (15) days following its
complete publication in two (2) newspapers of general circulation or in the Official Gazette
Approved.

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