FIFrEENTH CONGRESS OF THE 
REPUBLIC OF PHILIPPINES 
FIRST REGULAR SESSION 
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SENATE 
Senate Bill No. 2877 
·11 
JUN 13 P3 :45 
Introduced by: Senator Teofisto "TG" L. Guingona III 
EXPLANATORY NOTE 
International trade is a national concern. The subject, Issues, and commitments covered by the ever~ 
increasing number of international trade, commodity, and investment agreement'; are intricately 
intertwined with paramount national concerns which include, among others, job availabihty and 
security, food sovereignty, nIral and industrial development, financial stability, and public revenue 
collection and management. 
It is within this context that this measure be considered with a deliberate and committed sense of 
urgency. 
This bill hopes to establish a singular entity called the Philippine Trade Representative OffICe 
(PTRO) to be responsible and accountable for positions developed and commitments made in 
international trade agreements/treaties. The establishment of the Philippine Trade Representative 
Office seeks to improve and strengthen the negotiating capabilities of the Philippines in order to 
ensure that international trade, commodity, and/or investment agreements shall only be entered into 
only when these are beneficial to the Filipino people. 
In establishing the l)TRO, the following objectives are sought: 
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Enhanced negotiation capacity for Philippine negotiators 
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Increased transparency and relevant participation for stakeholders 
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Accountability for officials involved in the process of trade, investment, and commodity 
agreement negotiations 
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Coherence and cohesiveness in the Philippine trade, commodity, and investment strategy in 
relation to agreements with internattonal players 
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Participation of Congress in the processes relevant to international trade because of the clear 
recognition that while trade, investment, and commodity agreements involve foreign 
partners, the formulatIon of poliCIes in relation to nattonal economy, commerce, and 
development, whether cilese be purely domestic in application or international, is a shared 
duty of all different branches of the Philippine government. In other nations, cile legislative 
branch plays an active role in treaty negotiations. In the United States,' members of 
Congress can join the negotiation teams and actually be present during the negotiation 
process. They can propose proVIsions to be included, modified, and even removed from the 
U.S. commitments in cile treaty. In the European Union, the European Parliament does not 
only give its assent to proposed free trade agreements, it is also required that they be given a 
copy of the negotiation proposals [i.e. negotiation mandate] and cilat they are regularly 


consulted during the course of the negotiations to ensure that the outcome commands broad 
support.' 
For these reasons, let us enact this measure with dispatch. 


FIFTEENTH CONGRESS or THE 
REPUBLIC OF PTlILIPPINES 
FIRST IlliG ULAR SESSION 
) 
) 
) 
SENATE 
Senate Bill No. 2 8 7 7 
"11 
JUN 13 P3 :45 
RECEIVED By:-0=--
Introduced by: Senator Teofisto "TG" Guingona III 
AN ACT ESTABLISHING A FRAMEWORK FOR RESPONSIBLE AND 
ACCOUNTABLE TRADE NEGOTIATIONS BY CREATING THE PHILIPPINE 
TRADE REPRESENTATIVE OFFICE, APPROPRIATING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES. 
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Be it e1Iacted ry the Senate and House qfEepresentatives qftbe Philippines in Congress assembled: 
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SECTION 1. 
TITLE. 
This Act shall be known as the "Charter of the Philippine Trade 
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Representative 0 ffice". 
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SECTION 2. DECLARATION OF POLICY. The State shall pursue a trade policy that serves 
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the general welfare, creates jobs, ensures food sovereignty, and supports rut"dl and industrial 
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development. "Ibis envisioned trade policy must utilize all forms and arrangements of exchange on 
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the basis of fair trade, equality, and reciprocity. In trade and investment negotiations, the State shall 
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pursue greater market access in harmony Wlth its duty to protect Filipino citizens and enterprises 
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against unfair foreign and trade practices. 
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It is also the declared policy of the State to ensure the right of the people andlor their org-anizations 
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to be duly informed on matters of public concern and the right to effectively and reasonably 
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participate at all levels of social, political and economic decision-making. 
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Congress has the power to regulate commerce, including commerce with foreign nations, and has 
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the power to reorganize the bureaucracy in order to make it more responsive to the needs of all the 
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stakeholders in the Philippine economy and the exigencies of international economic relations. Any 
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international commodity, investment, economic, commercial and lor trade agreement entered into 
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by the government constitutes regulation of commerce and will affect the different stakeholders in 
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our economy. Hence, it is essential that any agreement is harmonized with our existing domestic 
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laws and our Constitution. 
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Moreover, Congress, as one of the three (3) political branches of the government, has power over 
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foreign relations, especially international economic relations. 
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For this purpose, and pursuant to the power of Congress to regulate commerce, the State shall 
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ensure that a single office shall, with competence and accountability, lead, direct, fonnulate and 
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coordinate government agencies towards formulating coherent and cohesive policies, positions and 
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measures, and conduct regular stakeholders' consultations with respect to internanonal trade and 
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investment relations and negotiations. 
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SECTION 3. DEFINITION OF TERMS. 
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(a) 
"Ambassador" refers to a diplomatic official accredited to a foreign sovereign or 
government, or to an international orgamzation, to serve as the official representative of his 
or her own country. In everyday usage, it applies to the ranking plcmpotentlary minister 


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(b) 
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(d) 
(e) 
(f) 
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(h) 
(i) 
(j) 
(k) 
(I) 
(m) 
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. 
"Civil society" refers to the totality of voluntary civic and soctal organizations and 
institutions that form the basis of a functioning society as opposed to the formal institutions 
and structures of a State. 
"Civil society organizations" shall include non~government organizations (NGOs), cause 
oriented groups, 
people's orgamzations, cooperatIves, trade unions, professional 
associations, 
faith~based organizations, media groups, indigenous peoples movements, 
foundations, and other citizen groups formed primarily for social and economic 
development, which monitor government projects, engage in policy discussions, and actively 
participate in collaborative activities with Government. 
"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 mvestrnents. 
Finally, it likewise includes the obligations, rights and duties of all economic entities such as 
natural persons, corporations, partnerships and governmental entities. 
"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. 
"Fair trade" refers to a trading partnership based. on dialogue, transparency and respect, 
that seeks greater equity in international trade. It contributes to sustainable development by 
offering better trading conditions to, and securing the marginalized producers and workers. 
"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. 
"Legal" refers to the characterization of an act tllat 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. 
"Multi-sectoral" refers to a grouping of different sectors of tile economy. 
"Private sector" refers to that sector of tile economy that is owned by or is composed of 
private individuals, including natural persons doing busmess in their personal capacities. 
"Research" refers to the study of the potential or actual economic implications of a 
proposed or existmg trade agreement and tile validation of its findmgs among the 
stakeholders. 
"Sectors" refers to tile different economic or commercial groups composed of members 
With substantially common legitimate commercial interest, mcluding but not limited to 
business, labor, peasants, farmers, fisherfolk, consumers, private sector, public sector, service 
sector and manufacturing sector. 
"Stakeholders" refers 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 


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(n) 
(0) 
(p) 
commerce - either as factors in the production, sale, or distribution of goods and services, 
or as consumers or beneficiaries thereof. 
"Trade" refers to the voluntary exchange of goods, services and all things of economic 
value, whether Or not across national borders. 
"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 Bilateral 
Agreement. On the other hand, if it involves more than two (2) countries, then it is called a 
Multilateral 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. 
"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 oblig<ltions under the agreement. 
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SECTION 4. CREATION. There is hereby created the Philippine Trade Representative Office, 
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hereinafter referred to as the "Trade Office" that shall be attached to the Office of the President. 
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The Trade 0 ffice shall be headed by the Philippine Trade Representative who shall be appointed by 
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the President and confirmed by the Commission on Appointments. S/he shall hold a fLxed term of 
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six (6) years, shall be entitled to receive tl1e same allowances as a Chief-oE-Mission, and shall have 
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the rank of Cabinet Secretary. 
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Further, the Trade Offtce shall have tl1ree (3) Deputy Philippine Trade Representatives who shall be 
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appointed by the President upon the endorsement of various stakeholders and shall have the rank of 
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senior undersecretary. 
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The deputies shall have a term of SL,{ (6) years each and can be re-appointed for no more than a 
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second term. Of those first appointed under this Act, one deputy shall serve for six (6) years, 
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another deputy for four (4) years and another deputy for two (2) years. 
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SECTION 5. QUALIFICATIONS AND LIMITATION ON APPOINTMENTS. 
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(a) 
(b) 
Qualifications. - The Philippine Trade Representative and Deputy Trade Representatives 
must be natural-born citizens of the Philippines, and must be at least forty (40) and thirty-
five (35) years of age, respectively, of good moral character, unquestionable integrIty, and 
known probity and patriotism, and should possess tlle academic training, experience, and 
competence in business, economics, international trade law and policy or trade negotiations. 
The Philippine Trade Representative and Deputy Trade Representatives shall not, during 
their tenure in offtce, 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 tl1e functions of their offtce, 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 tl1eir office. 
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 dispute against 
the Philippines. 


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Likewise, the Philippine Trade Representative, Deputy Trade Representatives, and all 
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members of the research and legal staff of the Office of the Philippine Trade Representative 
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shall not be allowed to be employed, commissioned, or retained by foreign entities, or to do 
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any kind of consultancy or related work for foreign clients on trade and investment issues 
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within two (2) years after the expiration or termination of their service with the Office of the 
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Philippine Trade Representative. They shall hkewise maintain at all times the conftdentiality 
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of all matters that they have handled during their service with the Offtce of the Philippine 
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Trade Representative. 
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SECTION 6. PRESIDENT'S ANNUAL TRADE POLICY PLAN. The President, through 
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and with the Trade Office, shall submit an Annual Trade Policy Plan to the Joint Congressional 
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Oversight Committee on Trade and Investment Matters, on or before the 31" of January of every 
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year. The Annual Trade Policy l'lan shall include, among others, the followmg: 
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(a) 
(b) 
(c) 
(d) 
(e) 
A summary of the president's trade agenda for the year, including the policy 
priorities in relation to international trade, commodity, and/ or investments matters; 
An outline of developments and plans in relation to engagements with the World 
Trade Organization, including but not limited to, developments in the negotiations in 
agriculture, services, non-agricultural market access (NAMA), trade facilitation, trade 
in goods, intellectual property, and other related and relevant Issues; 
Updates and plans for proposed, on-going, and concluded negotiations of bilateral 
and/or regional agreements; including an identiftcation of possible, proposed, and 
existing trade partners with respect to the bilateral and/ or regional agreements; 
Updates and plans for other multilateral activities and trade enforcement efforts; 
Other relevant matters related to international trade, commodity, and investment 
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agreements. 
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SECTION 7. 
FUNCTIONS AND RESPONSIBILITIES OF THE PHILIPPINE 
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TRADE REPRESENTATIVE OFFICE. 
The Trade Offtce, through the President's Annual 
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Trade Policy Plan, is responsible for developing, coordinating, and harmonizing Philippl11e trade, 
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commodity, and investment policies, and leading negotiations, with other countries on these same 
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matters.),ursuant to this task, it shall: 
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(a) 
(b) 
(c) 
(d) 
(e) 
(f) 
Conduct research and legal studies related to trade and investments that will enhance 
trade policy formulation; 
Obtain, collate and maintain a database that shall include, but not be limited to, trade 
and investment statistics, trade and investment-related laws, policies, trade and 
investment agreements, and initiatives which have implications on the development 
of the l'hilippine negotiating position in trade and investment agreements, and which 
shall be accessible to the stakeholders; 
Undertake consultations with stakeholders in all aspects of trade policy formulation, 
negotiation, and execution. Stakeholders must also be directly involved in 
formulating positions related to trade and investment negotiations in line with the 
national development agenda; 
Through regular and meaningful consultation '\vith relevant government agencies, 
and various stakeholders, formulate the Philippme trade position aimed to support 
the achievement of the economic goals defined in the Constitution. 
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 tl,c auspices 
of the World Trade Organization, and other regional and bilateral commodity and 
direct investment negotiations: in which the Philippines participates; 
Advise the President and Congress on international trade and investment policies 
and their implications on the domestic economy and the impact of domestic policies 
on international trade and investment cOffitnitments; 


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(h) 
(i) 
(j) 
(k) 
(1) 
(m) 
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; 
Provide the necessary staff support for tlle Multi-sectoral and Sub-sectoral Advisorv 
Committee and tlle Inter-agency Coordinating Committee; and 
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Subject to Civil Service Commission rules, elect, appoint, employ and fix the 
compensation in accordance with the existing compensation laws of such officers 
and employees as are necessary and prescribe ilieir authority and duties; 
Employ and compensation, in accordance wiili the relevant laws, experts and 
consultants, 
Promulgate such rules and regulations as may be necessary to carry out the functions, 
powers and duties vested herem; 
Enter into and perform such contracts, leases, cooperative agreements, or oilier 
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 ilie Philippine government or wiili any public or private 
person, firm, association, corporation or institution; 
Adopt an official seal, which shall be judicially noticed; 
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SECTION 8. FUNCTIONS OF THE PHILIPPINE TRADE REPRESENTATIVE. The 
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Philippine Trade Representative may, for the purpose of carrying out his functions in this Act: 
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(a) 
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(c) 
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(e) 
(f) 
(g) 
(h) 
Create tlle org;anizational structure of Trade Office consistent with its mandate and 
functions provided in iliis Act, and according to strategic needs, and review the same 
regularly; 
I-lead tlle Philippine Trade Representative Office and exercise control and 
supervision over all its functions and activities and including its organization; 
Serve as the chief trade negotiator of the Philippines in international trade and 
investment agreements including, but not limited to, ilie WTO, regional, bilateral and 
plurilateral negotiations, in which ilie Philippines participates, and shall be 
responsible for ilie conduct of such; 
Create sectoral and tllematic desks tlut will receive and facilitate referrals to 
appropriate agencies, as may be required in iliis Act, complaints, information and 
concerns pertaining to trade and investment matters; 
Chair the Inter-agency Coordinating Committee on international trade and 
investments; 
Monitor and enforce ilie implementation of Philippine international trade policy, 
including direct investinent matters to the extent that tlley are related to international 
trade policy; 
Coordinate with national agencies in connection with the performance of his 
functions, subject to Section 15 of iliis Act; 
Call upon and deputize, in times of trade policy formulation and negotiation, ilie 
national agencies and Its 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 tlle extent iliat iliey are related to 
international trade policy; 


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(i) 
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Co-chair the Multi-sectoral Advisory Committee m their regular and special 
meetings; and 
Perform such other functions inherent to his functions, and as the President may 
direct pursuant to this Act. 
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SECTION 9. 
EX-OFFICIO POSITIONS AND FUNCTIONS OFTHE PHILIPPINE 
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TRADE REPRESENTATIVE. 
The Philippine Trade Representative shall be entitled to the 
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following ex officio positions and functions: 
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(a) 
(b) 
Senior representative on any office/ committee/task force/similar bodies that the President 
may establish for the purpose of advising the President on overall economic pohcies in 
which international trade matters predominate; and 
Participant in all economic summits and other international meetings at which international 
trade is a major topic. 
SECTION 10. 
FUNCTIONS AND DUTIES OF THE DEPUTY TRADE 
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REPRESENTATIVE. Each Deputy Philippine Trade Representative shall have as his principal 
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function the conduct of trade negotiations under this Act and shall have such other functions as the 
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Philippine Trade Representative may direct. 
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(a) 
Lead tile negotiations for tlleir respective sectors and/or areas of concern; 
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(b) 
Convene and chair tile Sub-sectoral Advisory Committees and tile Inter-agency Coordinating 
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Subcommittee for their respective sectors and/ or areas of concern; 
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(c) 
Ensure proper coordination among the various government agencies involved in tlleir specific 
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sectors of concern, and harmonize conflicting negotiating positions; 
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(d) 
Prepare sector-specific proposals and negotiating positions and strategies; and 
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(e) 
Perform all other functions as may be delegated by the Philippine Trade Representative, or as 
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may be required by the nature or exigencies of their foregoing functions and responsibilities. 
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SECTION 
11. 
INTER-AGENCY 
COORDINATING 
COMMITTEES 
AND 
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SUBCOMMITTEES. 
In connection with the performance of his/her functions, the Philippine 
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Trade Representative shall, to the extent necessary for the proper administration and execution of 
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the trade and investment agreements of the Philippines, draw upon tlle expertise of, and consult 
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with national agencies. 
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The Philippine Trade Representative shall consult with concerned agencies and any other agency on 
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trade and investment policy issues, without prejudice to the exercise by the Bangko Sentral ng 
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Pilipinas of its authority as an independent central monetary authority under tlle Constitution and 
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Republic Act No. 7653 or the New Central Bank Act. All agencies consulted by IDe Philippine 
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Trade Representative shall participate actively, cooperate fully, and promptly provide to the 
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Philippine Trade Representative all documents and information requested. 
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Further, there is hereby created Inter-agency Subcommittees to provide inputs and support to the 
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Deputy Trade Representatives. 
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SECTION 12. 
MEMBERSHIP IN THE NEDA BOARD. 
The Philippine Trade 
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Representative shall be an additional member of the NEDA Board, which is created under 
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Executive Order No. 230. The Philippine Trade Representative shall have the same rights and 
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obligations as all the other members. 
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SECTION 13. ORGANIZATION OF THE PHILIPPINE TRADE REPRESENTATIVE 
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OFFICE. Pursuant to the provisions of this Act and to function effectively, the Phihppine Trade 
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Representative Office shall be internally supported by a Trade Research Service, Data Collection, 
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Analysis and Dissemination Office and a Legal Services and Programme Office. 
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SECTION 14. TRADE RESEARCH SERVICE, DATA COLLECTION, ANALYSIS AND 
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DISSEMINATION. 
The office shall improve and strengthen its capacity on research, data 
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collection, analysis, and dissemination of trade and investment statistics, laws and policies, 
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agreements and other related information. 
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The trade and investment research office under the Office of the Philippine Trade Representative 
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shall have the following specific functions and responsibilities: 
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(a) 
(b) 
(c) 
(d) 
(e) 
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(g) 
Generate, maintain, and update records/files of comprehensive national and 
international trade statistics, tariff and n01Hariff 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; 
Provide the general public access to trade data and information and other relevant 
documents through online databases, journals, publications, etc. 
Collaborate with government and nongovernment research institutions m research 
concerning trade and inves tment poliCIes and programs in relation to the national 
developmen t program; 
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 
Perform odler functions as may be provided by law or assigned by the Trade 
Representative or Deputy Trade Representative. 
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 
their capacity and competence in trade and investment negotiations; 
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SECTION 15. 
LEGAL SERVICES AND PROGRAMME. 
The Office shall have a Legal 
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Services arm with the following functions and responsibilities: 
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(a) 
(b) 
(c) 
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Provide legal advice to the Office of the Philippine Trade Representative, including 
legal advice on trade and investment negotiations; 
Interpret laws and rules affecting the operation of the office; 
Prepare contracts and instruments to which tlle office is a party, and interpret 
provisions of contracts covering work perfoffi1ed for the office by private entities; 
Assis t in the promulgation of rules governing the activities of the office; 
Prepare comments on proposed legislation concerning the offICe; 
Assist the Solicitor General in suits involving the office or its officers or employees, 
or act as dleir principal counsel in all actions taken in their official capacity before 
judicial or administrative bodies; 
Assist the offlce in ensuring that the rights and mterests of the Republic of the 
Philippines are protected in the WTO agreements, other multilateral trade, regional, 
plurilateral and bilateral trade and investment agreements, and ensure that 
counterpart countries comply with their obligations in the agreements; 


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(h) 
(i) 
Represent the Republic of the Philippines in any dispute settlement before the 
\\lTO, other multilateral trade agreements, bilateral trade agreements, or in any other 
suit involving international trade; and 
Perfonn such otller functions as may be directed by the Philippine Trade 
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Representative Office. 
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SECTION 16. ISSUANCE OF COMPULSORY PROCESSES. Pursuant to Section 7 of this 
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Act, the Philippine Trade Representative Office, in aid of trade policy formulation and negotiation, 
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shall have the power and authority to invite or summon by subpoena ad testificandum any public 
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official, private citizen or any other person to testify before it, or require any person by subpoena 
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duces tecum to produce before it such records, reports, documents or otl,er materials as it may 
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require. '[,here shall be a compliance within 30 days to the subpoena issued otherwise any failure to 
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comply is punishable under Section 24 of this Act. 
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SECTION 17. FILE CASES AGAINST VIOLATORS. The PTRO shall have the authority to 
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file cases and other appropriate legal actions to further its mandate under Section 7 (f) and (g), and 
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collaborate, if necessary, with relevant government agencies and stakeholders in order to protect tl,e 
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rights and interests of the Philippines in relation to trade and trade-related investments. 
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SECTION 18. 
MULTI-SECTORAL ADVISORY COMMITTEE, Membership. A Multi-
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Sectoral Advisory Committee (MSAC), presided over by the Trade Representative, shall be 
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established and it shall be composed of representatives from civil society and the private sector 
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working on international trade, commodity, and/or investment policies. The Committee shall 
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consist of representatives of, among others but not limited to, industry, agriculture, labor, small 
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business, service industries, retailers, consumers. Subcommittees may also be org-anized to provide 
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information and advice on specific matters. 
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Members of the Committee and Subcommittees shall be appointed by the Philippine Trade 
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Representative, provided that they are representatives of civil society organizations and private 
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sector groups that are duly accredited in accordance with rules and regulations to be established by 
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the Trade Office. Members of the committee shall serve without either compensation or 
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reimbursement of expenses. 
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SECTION 19. MSAC, Duties and Functions. The Philippine Trade Representative shall seek 
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information and advice from the MSAC on matters related to: 
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(1) 
(2) 
(3) 
(4) 
negotiating objectives and bargaining positions before entering into a trade and 
investment agreement; 
the operation, implementation and monitoring of any trade and investment 
agreement once entered into; 
trade remedies, dispute settlements, noncompliance and/or violations to any trade 
and investment agreement; and 
other matters arising in connection with the development, lmplementation and 
administration of tlle trade and investment pohey. 
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Furthcnnore, it is the duty of the MSAC to: 
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(1) 
(2) 
(3) 
Provide the Philippine Trade Representative overall poltcy advice on trade and trade-
related matters; 
Provide technical support to the Philippine Trade Representative; 
Prior to any trade negotiation, participate in the development of the negotiation 
objectives and bargaining positions of the country and at the conclusion of 
negotiations for each trade agreement entered into, provide a report to tl,e Philippine 
Trade Representattve to fonn part of the latter's report to the President and 
Congress, pursuant to Section 5(g) hereof. The report of the Committee shall include 


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(4) 
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 set forth; and 
As observers, be allowed to accompany and adVIse the Phihppine delegation in trade 
and investment negotiation misslOns. 
SECTION 20. 
THE PHILIPPINE TRADE REPRESENTATIVE OFFICE IN 
RELATION TO THE MULTI-SECTORAL ADVISORY COMMITTEE. 
The Philippine 
Trade Representative shall also perform the following functions on the Multi-sectoral Advisory 
Committee: 
(a) 
(b) 
(c) 
I-lave the responsibility to approve and set the agenda for all Multi-sectoral Advisory 
Con101ittee n1eetings; 
Provide secretariat and other necessary staff support for the Multi-sectoral Advisory 
Committee meetings; and 
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. 
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SECTION 21. 
CONFIDENTIALITY AGREEMENT. 
Members of the Multi-Sectoral 
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Advisory Committee and its Sub-committees shall enter into a confidentiality agreement with the 
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Trade Office and shall be prohibited from disclosing information previously classified by the Trade 
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Office as confidential. 
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SECTION 22. 
JOINT CONGRESSIONAL OVERSIGHT COMMITTEE ON TRADE 
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AND INVESTMENT MATTERS. There shall be a Joint Congressional Oversight Committee 
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on Trade and Investment matters, hereinafter referred to as the "Congressional Oversight 
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Committee". The Oversight Committee shall be composed of five (5) members from the Senate, 
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which shall include the Chairpersons of the Committee on Trade and Commerce and the 
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Committee on Foreign Relations, and five (5) members from the I-louse of Representatives, which 
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shall include the Chairpersons of the Committee on Trade and Industry and the Committee on 
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Foreign Affairs. 
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The Congressional Oversight Committee, with the assistance of an independent panel of appointed 
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experts, shall conduct a periodic review and evaluation of the performance of the Philippine Trade 
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Representative Office, including its offtcials, every three (3) years. In preparing its recommendatory 
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assessment report for the Congressional Oversight Committee, the independent panel of experts 
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should conduct consultations with stakeholders. 
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The Members of the Congressional Oversight Committee shall be part of the pool of official 
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advisors on international trade, commodity, and investment policy for the IYfRO. Subject to the 
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rules and procedures of the negotiating panel, they may likewise sit as observers dunng the 
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negotiations of treaties and other international trade and investment agreements. 
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SECTION 23. 
REPORTORIAL REQUIREMENTS. 
The PTRO shall comply with the 
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following: 
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(a) 
In relation to intentions to negotiate any international trade, economic, and/or 
investment treaty or agreement, provlde the Congresslonal Oversight Committee and 
to the Multi-Sectoral Advisory Committee a report which shall contain, at a 
minimum, the subject matter for negotiauons and the general objectives of the 
government. 


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(b) 
(c) 
(d) 
For ongoing negotiations, the PTR shall, on its own and/or upon request, regularly 
update the Congressional Oversight Committee and the Multi-sectoral Advisory 
Committee on the negotiations, including the offers, counter-offers and, tentative or 
final agreements, of all the negotiating parties. 
Report at least twice a year and as may be directed by the President or Congressional 
Oversight Committee and as may be requested by MSAC on the developments of 
any international trade and investment negotiations and/or agreements. 
The Philippine Trade Representative shall submit a bi-annual report directly to the 
President, Congressional Oversight Committee and the Multi-sectoral 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. 
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SECTION 24. PROVISION ON ADMINISTRATIVE FINES AND PENALTIES. 
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(a) 
(b) 
(c) 
Penalry for Non-compliance on Issuance of Compulsory Processes - Any person or entity 
who 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 than One hundred thousand pesos 
(Php 100,000.00) nor more tlun Five hundred thousand pesos (Php500,OOO.OO), at tlle 
discretion of the court. 
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 than Two hundred fifty thousand pesos (Php2S0,OOO.OO) nor more tllan Five 
hundred thousand pesos (PhpSOO,OOO.OO), at tlle 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. 
Power to Impose Administrative Fines and Penalties - After due noitce 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,OOO,OOO.OO) for violations of any provisions under this Act. 
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SECTION 25. TRANSFER OF FUNCTIONS. The functions of the Bureau of International 
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Trade Relations under the Department of Trade and Industry, Attaches and Permanent Mission to 
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the WTO, Association of Soutlleast Asian Nations (ASEAN) and United Nations International 
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Organization (UNIO), and tlle trade negotiating and policy-making functions of the Tariff and 
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Related Matters Committee (TRMC) are hereby transferred to the Office of the Philippine Trade 
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Representative. 
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The foregoing transfer of powers and functions shall include all applicable funds and appropriations, 
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records, equipment, property and personnel as may be necessary. 
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SECTION 26. 
TRANSITORY PROVISION. 
The Tariff and Related Matters Committee 
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(TltMC) created by Section 6 of Executive Order No. 230, series of 1987, together with the 
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Technical Committee on \VrO Matters shall continue to function for six (6) months or unnl the 
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Office of the Philippine Trade Representative is set up whichever comes earlier, after which they 
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shall cease to function. 
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SECTION 27. 
IMPLEMENTING PROVISIONS. 
Within 30 days from the effectivity of 
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this Act, the President shall appoint tlle Philippine Trade Representative, together with his Deputies. 
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The PTRO shall, in consultation with the Departments of Trade and Industry, Agnculture, and 
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Foreign Affairs and the National Economic Development Authority, issue tlle implementing rules 


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and regulations necessary to implement the provislOns of this Act, 60 days from the date of 
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appointment of the Philippine Trade Representative. 
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SECTION 28. 
APPROPRIATIONS. 
'I11e amount necessary to implement the provisions of 
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this Act shall be charged against the current year's appropriations of the Bureau of International 
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Trade Relations under the Department of Trade and Industry, Attaches and Permanent MisSlOn to 
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the WTO, ASEAN and UNIO, the TRl\1C and other concerned agenCIes. Thereafter, such sums as 
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may be necessary for its continued implementation shall be included in the annual General 
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Appropriations Act. 
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SECTION 29. 
SEPARABILITY CLAUSE. 
If any section or provision of this Act shall be 
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declared unconstitutional or invalid, the other sections or provisions not affected thereby shall 
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continue to be in full force and effect. 
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SECTION 30. 
REPEALING CLAUSE. 
All laws, rules and regulations and other issuances 
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inconsistent with the provisions of this Act, including Section 6 of Executive Order No. 230, series 
17 
of 1987 and relevant provisions of Executive Order No. 133, series of 1987 are deemed modified, 
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revoked or repealed accordingly. 
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SECTION 31. EFFECTIVITY CLAUSE. This Act shall take effect fifteen (15) days following 
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its publication in two (2) newspapers of general circulation or in the Official Gazette, whichever 
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comes earlier. 
Approved,