THIRTEENTH CONGRESS OF THE 
) 
Second Regular Session 
REPUBLIC OF THE PHILIPPINES 
) 
6 
El$-? 2’; prj:tti 
) 
/ 
INTRODUCED BY SENATOR MAR ROXAS 
EXPLANATORY NOTE 
This bill seeks to create the Philippine Trade Representative Office which 
shall be the central government agency that will handle international trade policy 
formulation and negotiations, while maintaining effective coordination with other 
branches of government. 
The globalized world has been marked by closer political and economic 
integration among different countries, the most significant manifestations of which 
are the multilateral and bilateral trade agreements which inevitably affect the 
member economies. The Philippines is a signatory to the WTO, takes part in the 
ASEAN Free Trade Area (AFTA), and acceded to the Early Harvest Program under 
[lie China-ASEAN FTA. It is currently holding bilateral negotiations with Japan, and 
is considering bilateral talks with IJS, Australia, Korea and India. In this milieu of 
trade negotiations, the importance of a well-defined national policy and coherent 
negotiating position cannot be overemphasized. 
Sadly, there are undeniable 
deficiencies in the manner by which the Philippine government currently formulates 
its trade policies and conducts its negotiations. 
Unlike other countries, the Philippines has no single authoritative agency that 
handles trade policy development and negotiations. Instead, it has several line 
agencies and ad hoc committees with overlapping functions and responsibilities. The 
Trade and Related Matters Committee (TRMC) is the body tasked to coordinate 
agency positions and recommend national positions for international and economic 
negotiations. It has a Technical Committee composed of different line agencies, 
which handles trade and investment agreements, among others. It receives technical 
and administrative support from a NEDA-based secretariat. The TRMC also has a 
separate Technical Committee on WI’O Matters (TCWM), which is supported by the 
WTO Desk of the Bureau of International Trade Relations (BITR) of the UTI. The 
TCWM has technical subcommittees on agriculture, services, industrial goods, arid 
other rules, which are headed by the DA, NEDA, DTI-BOI, and DTI respectively. 
The TRMC, however, has no jurisdiction over ASEAN and APEC matters as it is 
handled by the Philippine Council on ASEAN and APEC Cooperation (PCAAC). And 
yet, the BITR-DTI maintains desks for ASEAN and APEC concerns. Just in 2003, 
another committee, the Philippine Coordinating Committee (PCC), was created to 
take the lead in the talks for the Japan-Philippine Economic Partnership Agreement 
(JPEPA). Its Secretariat falls under BITR-DTI. Finally, the Department of Foreign 
Affairs - being the primary agency involved international relations 
~ 
is likewise 
involved in the functions of these committees. 


Clearly, there is in the current structure a replication of functions and 
fragmentation of authority, which does not sene the country's interests. 
The 
research conducted by the Philippine Institute of Development Studies (PIDS) in 
September 2005 notes that the different line agencies sitting in the TRMC tend to be 
caught up in a turf mentality that prevents the creation of a cohesive cross-industry 
strategy. In the absence of a central authority, the line agencies always insist upon 
the protection of the sectors or industries they represent leading to divided attention 
in negotiations and a less than optimal final proposal. That there is no clear-cut 
hierarchy, mandate and delineation of authority in the current structure is 
highlighted by the fact that the government still had to create the PCC for the JPEPA 
negotiations despite the existence of the TRMC and PCAAC. Aside from these 
institutional flaws, not enough resources are put into trade research, which makes 
line agencies dependent and vulnerable to the studies and analyses of private sector 
lobbyists. 
With the creation of the Trade Representative Office, it is hoped that the 
country will have a more cohesive position and well-formulated policies in its trade 
negotiations. It will consolidate all the agencies, committees and bodies currently 
engaged in trade policy formulaion and negotiations into one comprehensive 
institution. Budgetary support shall be granted to trade policy research and sltill and 
capacity building of trade negotiators. Private sector participation will be tapped to 
identify the different issues affecting the industries that are necessary inputs in the 
trade policy development and negotiation process. 
All of these are aimed at 
institutionalizing the competence, efficacy and competitiveness of the country in the 
arena of multilateral and bilateral trade talks. 
In view of the foregoing, approval of thi 


THIRTEENTH CONGRESS OF 
1 
Second Regular Session 
) 
THE REPUBLIC OF THE PHILIPPINES ) 
INTRODUCED BY HONORABLE MAR R O U S  
AN ACT 
CREATING THE PHILIPPINE TRADE REPRESENTATIVE OFFICE, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be ir enacted by Lhe Senate and House of Representatives of the Philippi’ies in Congress 
assembled: 
Section 1. 
Representative Office.” 
Section 2. Declaration of Policy. It is hereby declared the policy of the State to pursue a 
trade policy that serves the general welfare, promotes and supports domestic agriculture 
and industry, and pursues national interest. For this purpose, the State shall ensure that a 
single, competent and accountable office shall coordinate all government policies, 
positions and measures with respect to international trade relations and negotiations. 
Section 3. 
Philippine Trade Representative Office, hereinafter referred to as the “Trade Office.” 
The Trade Office shall be headed by the Philippine Trade Representative who shall be 
appointed by the President, subject to confirmation by the Commission on 
Appointments. He shall hold a fixed term of six (6) years, shall be entitled to receive the 
same allowances as a chief of mission, and shall have the rank and emoluments of 
Ambassador Extraordinary and Plenipotentiary. 
Title. This Act shall be known as the “Charter of the Philippine Trade 
Creation. There is hereby created within the Office of the President the 
Further, the Trade Office shall have three (3) Deputy Philippine Trade Representatives 
who shall be appointed by the President with the confirmation of the Commission on 
Appointments. Each Deputy Philippine Trade Representative shall hold office at the 
pleasure of the President and shall have the rank of Ambassador. 
The Deputies shall have a term of six years each. The first set of Deputies shall have six, 
four and two-year terms respectively so that, thereafter, a Deputy shall be replaced every 
two years. They can be re-appointed for no more than a second term. 
I 


Section 4. Limitation on Appointments. Persons who have 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. 
Section 5. Functions and Responsibilities of the Philippine Trade Representative. The 
Philippine Trade Representative shall: 
a) Formulate the Philippine trade position based on a national development agenda that 
is a product of regular and meaningful consultation with industrial and agricultural 
producers as well as exporters. 
b) Develop and coordinate, monitor and ensure the implementation of Philippine 
international trade policy, including direct investment matters, to the extent that 
they are related to international trade policy. 
c) Asserting and protect the rights and interests of the Philippines under all bilateral, 
regional and multilateral trade agreements. 
d) 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. 
e) Act as the chief spokesperson for the President on international trade agreements and 
trade policy. 
r) Represent the Philippines in all international trade negotiations, including, but not 
limited to, any matter considered under the auspices of the World Trade 
Organization, and other regional and bilateral commodity and direct investment 
negotiations, in which the Philippines participates. 
g) Report directly to the President and Congress the implementation, operation and 
effectiveness of any trade agreement entered into, the administration of trade 
agreement programs, including the status of on-going trade and direct investment 
negotiations, non-tariff barriers, international commodity agreements, and other 
matters relating to the trade agreement programs. 
11) Issue policy guidance to government departments and agencies on basic issues of 
policy and interpretation arising from the exercise of international trade functions 
including, but not limited to, any matter considered under the auspices of the World 
Trade Organization and other regional and bilateral trade agreements, to the extent 
necessary to assure the coordination of international trade policy and its consistency 
with other laws. 
i) Coordinate quick and decisive inter-agency response to specific cases of unfair trade 
practices and import surges. 
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j) Be the chairperson of the inter-agency committee on Tariff and Related Matters 
(TRM). 
IC) Perform such other functions as the President may direct. 
Section 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 advising the President on overall economic policies in which international 
trade matters predominate; and 
b) Re included as a participant in all economic summits and other international meetings 
at which international trade is a major topic. 
Section 7. 
Representative may: 
a) Delegate any of his functions, powers and duties to officers and employees of the 
Trade Office as he may designate; and 
Powers of the Philippine Trade Representative. The Philippine Trade 
b) Authorize such successive re-delegations of functions, powers and duties to officers 
and employees of the Office as he may deem appropriate. 
The Philippine Trade Representative may, for the purpose of carrying out his functions in 
this Act: 
(1) Select, appoint, employ and fix the compensation of the officers and employees of 
the Trade Office as are necessary, subject to the civil service and classification laws. 
(2) Employ experts and consultants in accordance with the relevant laws and 
compensate individuals so employed for each day. 
(3) Promulgate such rules and regulations as may be necessary to carry out the 
functions, powers and duties vested in him; 
(4) Utilize the services, personnel and facilities of other national agencies, upon the 
latter's consent, whose functions are related to or affect trade and investments, and 
consuIt with national agencies in connection with the performance of his 
functions; 
(5) Enter into and perform such contracts, cooperative agreements, or other 
transactions as may be necessary in the conduct of the work of the Trade Office 
and on such terms as the Philippine Trade Representative may deem appropriate, 
with any agency or instrumentality of the Philippine government or with any 
public or private person, firm, association, corporation or institution. 
(6) Accept voluntary and uncompensated services, notwithstanding the provisions of 
the Civil Service Code; 
(7) Adopt an official seal, which shall be judicially noticed. 
Section 8. Research and Training. The Trade Office shall undertake research and study 
on trade and trade-related issues affecting various sectors before, during and after trade 
negotiations, as well as on issues confronting the implementation of multilateral and 
J 


bilateral trade agreements, to aid in the formulation of trade policies and in the conduct 
of trade negotiations. 
The Trade Office shall conduct, or facilitate the conduct of, trainings and courses for the 
benefit of the technical staff of the Trade Office in order to build, improve and enhance 
their capacity and competence in trade negotiations. 
Section 9. 
Functions of Deputy Philippine Trade Representatives. Each Deputy 
Philippine Trade Representative shall have as his principal function the conduct of trade 
negotiations under this Act and shall have such other functions as the Philippine Trade 
Representative may direct. 
Section 10. Inter-Agency and Private Sector Coordination on Unfair Trade Practices. In 
carrying out his functions and responsibilities with respect to unfair trade practices and 
import surges, the Philippine Trade Representative shall: 
a) Create agriculture and industry desks that will facilitate complaints, information and 
concerns pertaining to unfair trade practices and import surges; 
b) Coordinate the use of inter-agency resources to identify, address and resolve specific 
cases of unfair trade practice; 
c) IdenLify and refer to the appropriate department or agency of the national 
government for action any act, policy or practice identified in the report required 
under Section 5(g) hereof, or otherwise known to the Philippine Trade 
Representative on the basis of other available information, that may be an unfair 
trade practice because it is either: 
i. considered to be inconsistent with the provisions of any trade agreement, or 
ii. has a significant adverse impact on Philippine commerce, including on domestic 
firms or industries that are either too small or financially weak to initiate 
proceedings under the trade laws. 
d) Identify on a biennial basis, those Philippine government policies and practices that, 
if engaged in by a foreign government, might constitute unfair trade practices under 
Philippine law. 
For puvoses of carrying out the above functions, the Philippine Trade Representative 
shall be assisted by an inter-agency advisory committee on unfair trade practices and 
import surges composed of the Philippine Trade Representative as chairman, and senior 
representatives of the following agencies, appointed by their respective heads, as 
members: 
a) the National Economic Development Authority 
b) the Department of Trade and Industry 
c) the Department of Agriculture 
d) the Department of Finance 
e) Bureau of Customs 
f) Tariff Commission; and 
g) the Administrator of the Export Processing Zone Authority 
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The Philippine Trade Representative shall likewise seek assistance from Philippine 
industrial and agricultural producers and exporters on matters affecting unfair trade 
practices and import surges. 
Section 11. Inter-Agency Technical Committee. There is hereby created an Inter- 
Agency Technical Committee to assist the Trade Representative in his function of 
developing and coordinating Philippine positions on international trade and trade- 
related investment issues. The Technical Committee shall be composed of the Philippine 
Trade Representative as chairman, and senior representatives of the following agencies, 
appointed by their respective heads, as members: 
a. Department of Trade and Industry 
b. National Economic Development Authority 
c. Department of Finance 
d. Department of Agriculture 
e. Department of Environment and Natural Resources 
f. Department of Foreign Affairs 
g. Hanglco Sentral ng Pilipinas 
h. Tariff Commission 
i. National Statistical Coordination Board 
j. Bureau of Customs 
lc. Maritime Industry Authority 
1. Board of Investments 
The Philippine Representative may include in the Technical Committee additional 
members from such other agencies whose functions have direct relation LO trade and 
investments to ensure that there is a consolidated governmental position on trade and 
trade-related investment issues. 
Section 12. Transfer of Functions. The Foreign Trade Service Corps Coordinating Office, 
the Bureau of International Trade Relations under the Department of Trade and Industry, 
and the Bureas and Offices under the Department of Agriculture, the Department of 
Foreign Affairs, the National Economic Development Authority and such other agencies 
that are involved in trade policy formulation and negotiations, 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 Trade Office and the Department of Trade and 
Industry. 
Section 13. Advisory Committee for Trade Policy and Negotiations. There is hereby 
created an Advisory Committee for Trade Policy and Negotiations. 
The Advisory Committee shall consist of not more than 20 members consisting of 
representatives of industry, agriculture, labor, small business, service industries, retailers 
and consumers. The Advisory Committee shall be broadly representative of key 
economic sectors and groups affected by trade. Members of the Advisory Committee 
shall be appointed by the Philippine Trade Representative alone or in conjunction with 
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the concerned Cabinet officers. The Philippine Trade Representative shall preside over 
the Advisory Committee. 
Section 14. Duties and Functions. The Committee shall shall have the primary duty and 
function to: 
a. Provide the Philippine Trade Representative overall policy advice on trade and trade- 
related matters; 
b. Provide technical support to the Philippine Trade Representative by drawing upon 
the knowledge and expertise of its members; 
c. Prior to any trade negotiation, participate in the development of the negotiation 
objectives and bargaining positions of the country and at the conclusion of 
negotiations for each 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 Section 5(g) hereof. The report of the Committee shall include an 
assessment and evaluation of whether and to what extent the agreement promotes 
Philippine economic interest and achieves the applicable overall and principal 
negotiating objectives set forth; 
d. Recommend to the Philippine Trade Representative the participation of private sector 
representativeh to accompany the Philippine delegation in an observer capacity in 
trade negotiations. All expenses incurred by the private sector representativeh shall 
be borne by the same and/or hidher organization; 
The Committee shall consult with and seek recommendatory information and advice 
from, representatives of the private sector and non-government organizations working 
on trade policy with respect to: 
a. The principal multilateral, regional and bilateral trade negotiating objectives and 
bargaining positions, and the progress being made toward their achievement; 
b. The implementation, operation and effectiveness of concluded multilateral and 
bilateral agreements, including the resolution of trade disputes; 
c. The actions taken pursuant to trade remedy laws of the Philippines and the 
effectiveness of such actions in achieving trade policy objectives; and 
d. Important developments in other areas of trade for which a proper policy response 
must be developed. 
In order to carry out the foregoing functions, the Philippine Trade Representative shalI 
identicy and accredit groups or networks of local industrial and agricultural producers 
and exporters whose assistance may be availed of. 
Section 15. Administrative Provisions. 
a. The Philippine Trade Representative will have the responsibility for prior approval of 
the agenda for all Advisory Committee meetings; 
b. The Office of the Philippine Trade Representative will provide clerical and other 
necessary staff support for the Advisory Committee; 
c. Members of the committee shall serve without either compensation or 
reimbursement of expenses. 
d. The committee will meet as needed at the call o f  the Philippine Trade Representative 
depending on various factors such as the level o f  activity of trade negotiations. 
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Section 16. Appropriations. The sum of Twenty Million Pesos (Php 20,000,000) is hereby 
authorized to be appropriated to the Office for the purposes of carrying out its Cunctions 
for the first fiscal year after the effectivity of this Act. 
For each fiscal year thereafter, there is authorized to be appropriated to the Office such 
additional sums as may be provided by law for the salaries of its officers and employees to 
reflect pay rate changes made in accordance with the Salary Standardization Act. 
Section 17. Implementing Rules and Regulations. Within 60 days from the effectivity of 
this Act, the President shall appoint the Philippine Trade Representative who shall, in 
consultatioii 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. 
Section 18. Separability Clause. If any section or provision of this Act shall be declared 
unconstitutional or invalid, the other sections or provisions not affected the eby shall 
continue to be in full force and effect. 
Section 19. Repealing Clause. - All laws, decrees and orders or parts thereof inconsistent 
herewith are deemed repealed or modified accordingly. 
Section 20. 
publication in a newspaper of general circulation in the Philippines. 
Approved 
Effectivity. - This Act shall take effect fifteen (15) days following its 
I