FOURTEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
Third Regular Session
)
SENATE
COMMITTEE REPORT NO. 5() 6
Submitted by the Committee on Trade and Commerce joint with the Committee on
Foreign Relations and the Committee on Finance on
AIIG 2 6 20091-1__
Re: Senate Bill No. ----3.417·
,prepared by the Committees
Recommending its approval in substitution of Senate Bill Nos. 252 and 1612, taking
into consideration House Bill No. 5971 with Senators Roxas, Lapid, Defensor-Santiago
and Angara as authors thereof
Sponsor: Senator Roxas
Mr. President:
The joint Committees on Trade and Commerce; Foreign Relations and on Finance
to which were referred Senate Bill No. 252, introduced by Senator Roxas, entitled:
"AN ACT
CREATING
THE
PHILIPPINE
TRADE
REPRESENTATIVE
OFFICE,
APPROPRIATING FUNDS THEREOF, AND FOR OTHER PURPOSES";
Senate Bill No. 1612, introduced by Senator Lapid, entitled:
"AN ACT
CREATING
THE
OFFICE
OF
THE
TRADE
REPRESENTATIVE,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES";
taking into consideration House Bill No. 5971, introduced by Reps. Tanada III, Nograles,
Fabian, et. a1. entitled:
"AN ACT
CREATING
THE
PHILIPPINE
TRADE
REPRESENTATIVE
OFFICE,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES"
have considered the same and have the honor to report them back to the Senate with the
recommendation that the attached bill, S.B. No.
341 7
,prepared by the
Committees, entitled:


"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."
be approved in substitution of S. B. Nos. 252 and 1612, taking into consideration H. B. No.
5971 with Senators Roxas, Lapid, Defensor-Santiago and Angara as authors thereof.
Respectfully submitted:
~M~O~~O
Chairperson
Committee on Foreign Relations
Vice-Chairperson, Committee on Finance
Chairman
Committee on Trade and Commerce
Member, Committee on Foreign Relations
Member, Committee on Finance
£J
//~
EDGARDO J. mGARA
Chairman, Committee on Finance
BENIGNO S. AQUINO III
Committee on Finance
Memb r,
ommittee on Trade &
<;::0
merce
Co
mittee on Finance
M mber, Committee on Foreign Relations
2
AQUILINO
. PIMENTEL, JR.
Committee on Foreign Relations
~~
JOKER P. ARROYO
Committee on Finance


;;===~~:;,,:::::=====:>
~OREN B0LEGARDA
Committee on Finance
Member, Committee on Foreign Relations
Members:
LfRrCHARD J. GORDON
Committee on Trade and Commerce
Committee on Foreign Relations
Committee on Finance
BONG" B. REVILLA, JK
mmittee on Trade and Commerce
ommittee on Finance
FRANCIS N. PANGILINAN
Committee on Trade and Commerce
Committee on Foreign Relations
Committee on Finance
ALAN PETER Compaiiero S. CAYETANO
Committee on Trade and Commerce
Committee on Foreign Relations
Committee on Finance
M
L "Lito" M. LAPIr;?V\
Committee on Foreign Re(ations
Committee on Finance
3
~
~
RODOLFO~
Committee on Trade and Commerce
Committee on Foreign Relations
Committee on Finance
FRANCIS "CHIZ" G. ESCUDERO
Committee on Trade and Commerce
Committee on Foreign Relations
Committee on Finance
f/tt1flh~_~
M.A. MjU)RIGAI:
~ttee on Foreign Relations
Committee on Finance
p8f1cj~i.ACSON
C mm ttee on Foreign Relations
Co
ittee on Finance
MANNY VILLAR
Committee on Foreign Relations
Committee on Finance


ANTONIO "Sonny" F. TRILLANES N
Committee on Finance
"Compaiiera" PIA S. CAYETANO
Committee on Foreign Relations
Committee on Finance
JERCITO ESTRADA
Preside t Pro-Tempore
Ex-Officio Members:
I
MIGUEL F. ZUBIRI
Majority Floor Leader
QUILINO Q, PIMENTEL, JR.
Minority Floor Leader
HON. JUAN PONCE ENRILE
Senate President
Senate of the Philippines
Pasay City
4


FOURTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
Third Regular Session
)
)
)
'l
/\1"- ",'
',)r._ '.12
":-;
,.JU io
,.J.
,~
SENATE
~
'p17
HECF1vr n "',
. -
-
S. B. No. ----',"'---"":Il'-""'--'-_
(In substitution of Senate Bill Nos, 252 and 1612, taking into consideration H.B,No, 5 71)
Prepared by the Joint Committees on Trade and Commerce; Foreign Relations and Finance
with Senators Roxas, Lapid, Defensor-Santiago and Angara as authors thereof
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.
Be it t:nacted by the Senate and the House ofRepresentatives ofthe Philippines in Congress
assembled'
CHAPTER 1
GENERAL PROVISIONS
1
SECTION 1. Title. - This Act shall be known as the "Accountability in International
2
Trade Negotiations Law ofthe Philippines'~
3
SEC. 2. Declaration ofPolicy. - It is hereby declared the policy of the State to pursue
4
an international trade policy that serves the general welfare, promotes and supports domestic
5
agriculture and industry, and pursues national interesL For this purpose, and pursuant to the
6
power of Congress to regulate commerce, the State shall ensure that a single office shall, with
7
competence and accountability, lead, direct and coordinate government agencies towards the
8
formulation of coherent and cohesive policies, positions and measures with respect to
9
international trade engagements, relations and negotiations.
10
Sec. 3. Definition ofTerms. -
, ,
11
a)
"Commerce" refers to the entire range of activities connected with the
12
production, manufacturing, accumulation, gathering, mining, raising, harvesting, exchange
1


or buying and selling of something of economic value such as agricultural products, minerals,
2
goods, services, information, debt instruments, shares of stock or equity, derivatives, and
3
money. It also includes capital formation, either through debt or equity, savmgs, and
4
investments. Finally, it likewise includes the obligations, rights, and duties of all economic
5
entities such as natural persons, corporations, partnerships, and governmental entities;
6
b)
"Consultation mechanism" refers to the means by which stakeholders and
7
sectors could participate effectively and meaningfully in the governmental process of
8
drawing up our international trade policy, and in coming up with all other policies and rules
9
affecting all aspects of international trade;
10
c)
"Fair trade" refers to a trading partnership, based on dialogue, transparency
11
and respect, that seeks greater equity in international trade between contracting nations;
12
d)
'Investment" refers to the act of putting money to a business, either by
13
directly buying or leasing assets, hiring personnel, and entering into a whole gamut of
14
contracts needed to run an ongoing concern, or by buying equity in a business - typically in
15
the form of shares of stock;
16
e)
''Legal'' refers to the characterization of an act that is not contrary to
17
Philippine laws, including international commercial agreements to which the Philippines is
18
a party, and the accession of the parties to a trade and/or investment agreement;
19
20
f)
g)
''Multi-sectoral''refers to a grouping of different sectors of the economy;
''Nongovernment organizations" refer to non-stock, non-profit corporations
21
organized under the laws of the Republic of the Philippines doing charitable, educational,
22
religious, social, economic, and other not-for-profit endeavors;
23
h)
''Private sector" refers to the for-profit sector of the economy that is owned
24
by or is composed of private individuals, including natural persons, doing business in their
25
personal capacities;
2


I
i)
''Research'' refers
to
the
study of the
potential
or
actual
economic
2
implications of a proposed or existing trade agreement and the validation of its findings
3
among the stakeholders;
4
j)
''Sectors'' refer to the different economic or commercial groups composed of
5
members with substantially common commercial interest,
including
business, labor,
6
peasants, farmers, fisherfolk, consumers, private sector, public sector, service sector, and
7
manufacturing sector;
8
k)
''Stakeholders''refer to persons or groups of persons with legitimate interest in
9
commerce or whose economic well-being will be affected by any government policy or law
10
affecting commerce - either as factors in the production, sale, or distribution of goods and
II
services, or as consumers or beneficiaries thereof;
12
I)
"Trade" refers to the voluntary exchange of goods, services and all things of
13
economic value, whether or not across national borders;
14
m)
.
"Trade and Investment Agreement" or ''Intemational Trade and Investment
IS
Agreement" refers to an accord whereby two (2) or more countries bind themselves to a set
16
of rules that govern the commercial and investment transactions of persons originating from
17
any of the parties to the agreement.
When it is just between two (2) countries, it is called a
18
BilateralAgreement. On the other hand, if it involves more than two (2) countries, then it is
19
called a Multilatel'al Agreement, RegionalAgreements are those among countries within the
20
same geographical area as contemplated by the agreement. Plurilateral Agreements are
21
specialized agreements included in a multilateral agreement, and where the parties have the
22
option of acceding;
23
n)
"Trade Dispute" refers to a disagreement between two (2) or more countries
24
to a trade agreement that arises when at least one country adopts a trade policy measure or
3


takes some action that one or more fellow members consider to be a breach of the
2
agreement, or a failure to live up to obligations under the agreement.
3
CHAPTER 2
4
CREATION AND FUNCTIONS OF THE PHILIPPINE TRADE REPRESENTATNE OFFICE
5
AND PHILIPPINE TRADE REPRESENTATIVE
6
SEC. 4. Creation. - There is h,ereby created within the Office of the President the
7
Philippine Trade Representative Office, hereinafter referred to as the "PTRO."
8
The PTRO shall be headed by the Philippine Trade Representative who shall be
9
appointed by the President, subject to confirmation by the Commission on Appointments.,
10
He shall hold a fixed term of six (6) years, shall be entitled to receive the same :'tllowances as
11
a Chief-of-Mission, and shall have the rank of Cabinet Secretary.
12
Further, the PTRO shall have three (3) Deputy Philippine Trade Representatives who
13
shall be appointed by the President. Each Deputy Philippine Trade Representative shall hold
14
office at the pleasure of the President and shall have the rank of Undersecretary.
15
The Deputies shall have a term of six (6) years each. The first set of Deputies shall
16
have six-, four-, and two-year terms respectively so that, thereafter, a Deputy shall be
17
replaced every two years. They can be re-appointed for no more than a second term.
18
SEC. 5. Qualifications and Limitations on Appointments. -
19
a)
Qualifications.
- The
Philippine Trade
Representative
and
Deputy Trade
20
Representatives must be natural-born"citizens of the Philippines, and must be at least forty
21
(40) and thirty-five (35) years of age, respectively, of good moral character, unquestionable
22
integrity, and known probity and patriotism, and should possess the academic training,
23
experience, and competence in trade policy, trade negotiations, business, economics, or law,
24
preferably related to international trade.
4


The Philippine Trade Representative and Deputy Trade Representatives shall not,
2
during their tenure in office, engage in the practice of any profession, or intervene directly
3
or indirectly in the management or control of any private enterprise which may, in any way,
4
be affected by the functions of their ~ffice, nor shall they be financially interested, whether
5
directly or indirectly, in any contract with the government, or in any franchise, or special
6
privilege granted by the government or any subdivision, agency or instrumentality thereof,
7
including government-owned or -controlled corporations or their subsidiaries. They shall
8
strictly avoid conflicts of interest in the conduct of their office.
9
b) Limitations on Appointments; Disqualifications. No person shall be appointed
10
Philippine Trade Representative or Deputy Trade Representative if he/she has directly
11
represented, aided, or advised a foreign entity in any trade and/or investment negotiation or
12
trade dispute againstthe Philippines.
13
Likewise, the Philippine Trade Representative, Deputy Trade Representatives, and all
14
members of the research and legal staff of the Office of the Philippine Trade Representative
15
shall not be allowed to be employed, commissioned, or retained by foreign entities, or to do
16
any kind of consultancy or related work for foreign clients on trade and investment issues
17
within two (2) years !'tfter the expiration or termination of their service with tJ;1e Office of
18
the Philippine Trade Representative. They shall
likewi~e maintain at all times the
19
confidentiality of all matters that they have handled during their service with the Office of
20
the Philippine Trade Representative.
21
SEC. 6. Functions of the Philippine Trade Representative Office. -
The Philippine
22
Trade Representative Office shall:
23
a)
Formulate the Philippine trade position based on a national development agenda that
24
is a product of regular and meaningful consultation with relevant government
25
agencies and private sector stakeholders;
5


b)
Serve as the principal advisor to the President on international trade policy and shall
2
advise the President on the impact of other policies of the Philippine Government on
3
international trade;
4
c)
Negotiate
trade
and
investment
agreements
on the
basis
of the
Philippine
5
Constitution and other laws, and represent the Philippines in all international trade
6
negotiations, including, but not limited to, any matter considered under the auspices
7
of the World Trade Organization, and other regional and bilateral commodity and
8
direct investment negotiations: in which the Philippines participates;
9
d) Monitor and enforce the implementation of Philippine international trade policy,
10
including direct investment matters to the
extent that they are
related to
11
international trade policy;
12
e) Assert and protect the rights and interests of the Philippines under all bilateral,
13
regional and multilateral trade agreements by coordinating quick and decisive inter-
14
agency response to specific cases ofunfair trade practices and import surges; and
15
f)
Perform such other functions inherent to his functions, and as the President may
16
direct.
17
SEC. 7. Functions of the Philippine Trade Representative. - The Philippine Trade
18
Representative may, for the purpose of carrying out his functions in this Act:
19
(I) Create the organizational structure of Philippine Trade Representative Office
20
consistent with its mandate and functions provided in this Act, and according to
21
strategic needs, and review the same regularly;
22
(2) Select, appoint, employ, and fix the compensation of the officers and employees of the
23
PTRO as necessary, subject to the civil service and classification laws;
24
(3) Employ
experts
and
consultants in
accordance
with the
relevant
laws
and
25
compensate individuals so employed for each day;
6


I
(4) Promulgate such rules and regulations as may be necessary to carry out the functions,
2
powers and duties vested in hi~;
3
(5) Create sectoral and thematic desks that will receive and facilitate, as may be required
4
.. in this Act, complaints, information and concerns pertaining to unfair trade practices
5
and import surges;
6
(6) Consult with national agencies in connection with the performance of his functions,
7
subject to Section 17 of this Act;
8
(7) Call upon and deputize, in times of trade policy formulation and negotiation, the
9
national agencies and its personnel, and correspondingly use the services of the
10
deputized agency, whose functions are related to or affect international trade policy,
II
including direct investment· matters to
the extent that they are related to
12
international trade policy;
13
(8) Enter into and perform such contracts, cooperative agreements, or other transactions
14
as may be necessary in the conduct of the work of the PTRO and on such terms as
15
the Philippine Trade Representative may deem appropriate, with any agency or
16
instrumentality of the Philippine government or with any public or private person,
17
firm, association, corporation, or institution;
18
(9) Accept voluntary and uncompensated services, notwithstanding the provisions of the
19
Civil Service Code;
20
(10) Adopt an official seal, which shall be judicially noticed;
21
(11) Delegate any of his functions, powers and duties to officers and employees of the
22
PTRO as he may designate;
23
(12) Authorize such successive re-delegations of functions, powers and duties to officers
24
and employees of the PTRO as he may deem appropriate; and
7


(13) Perform such other functions inherent to his functions, and as the President may
2
direct pursuant to this Act.
3
Section 8. Ex-Officio Positions and Functions ofthe Philippine Trade Representative.
4
- The Philippine Trade Representative shall be entitled to the following ex-officio positions
5
and functions:
6
(1) Senior representative on any body that the President may establish for the purpose of
7
advising the President on overall economic policies in which international trade
8
matters predominate; and
9
(2) Participant in all economic summits and other international meetings at which
10
international trade is a major topic.
II
. SEC. 9. Functions of Deputy Philippine Trade Representatives. -
Each Deputy
12
Philippine Trade Representative shall have as his principal function the conduct of trade
13
negotiations under this Act and shall have such other functions as the Philippine Trade
14
Representative may direct.
15
CHAPTER 3
16
ROLE OF THE PHILIPPINE TRADE REPRESENTATIVE OFFICE IN THE COMMITTEE
17
ON TARIFF AND RELATED MATTERS (CTRM)
18
SEC. 10. Membership in the Committee on Tariffand Related Matters. - The PTRO
19
shall be a member of the Committeeon Tariff and Related Matters (CTRM) created under
20
Section 6 of Executive Order No. 230 dated 22 July 1987 on Reorganizing the National
21
Economic and Development Authority.
22
Sec. 11. Amendment to structure and fUnctions of the CTRM - The existing
23
Committee on Tariff and Related Matters (CTRM), created under Section 6 of Executive
24
Order No. 230 dated 22 July 1987 on Reorganizing the National Economic and Development
25
Authority, shall henceforth function as follows:
8


a)
Philippine Trade Representative Office (PTRO) shall be the only Chairman of the
2
CTRM with the National Economic Development Authority (NEDA) as the Vice-
3
Chairman of the Committee;
4
b) PTRO shall be the chair of all the sectoral subcommittees under the Committee;
S
c)
PTRO shall assume or delegate where the technical staff/secretariat of the
6
Committee and all its subcommittees shall be based; and
7
d) Transfer the CTRM function to advise the President and NEDA Board on Tariff
8
and related matters and on the, effects on the country of various international
9
developments, to the PTRO.
10
Sec. 12. Membership in the NEDA Board. - The Philippine Trade Representative shall
II
be an additional member of the NEDA Board, which is created under Executive Order No.
12
230. The Philippine Trade Representative shall have the same rights and obligati~nsas all the
13
other members.
14
CHAPTER 4
IS
ORGANIZATION, MANAGEMENT AND ADMINISTRATION OF THE
16
PHILIPPINE TRADE REPRESENTATIVE OFFICE
17
SEC. 13. Organization of the Philippine Trade Representative Office. - Pursuant to
18
the provisions of this Act and to function effectively, the Philippine Trade Representative
19
Office shall be internally supported by a Trade Research Division and a Legal Services
20
Division.
21
SEC. 14. Trade Research Division. The Trade Research Division under the PTRO shall
22
have the following specific functions and responsibilities:
23
a) Generate, maintain, and update records/files of comprehensive national and
24
international trade statistic, tariff and non-tariff measures, and investment-
2S
related data;
9


b)
Conduct sectoral and macrolevel impact assessment and/or potential effects of the
2
country's trade negotiating positions or an eventual trade agreement and validate
3
such studies;
4
c) Provide the general public access to trade data and information and other relevant
S
documents through online databases, journals, publications, etc.
6
d)
Collaborate with government and non-government research institutions in
7
research concerning trade and investments policies and programs in relation to
8
the national development program;
9
. e)
Tap the foreign trade service corps to get market intelligence information with
10
regard to commercial, industrial and general economic conditions, as well as non-
II
economic conditions affecting Philippine products both in the export and
12
domestic markets; and
13
f)
Perform other functions as may be provided by law or assigned by the Trade
14
Representative or Deputy Trade Representative.
1S
The PTRO shall also conduct, or facilitate the conduct of, trainings and courses for
16
the benefit of the technical staff of the PTRO in order to build, improve, and enhance their
17
capacity and competence in trade negotiations.
18
SEC. 15. Legal Services Division. - The PTRO shall have a Legal Services Division
19
with the following functions and responsibilities:
20
a)
Provide legal advice to the.PTRO, including legal advice on trade and investment
21
negotiations;
22
b)
Interpret laws and rules affecting the operation of the PTRO;
23
c)
Prepare contracts and instruments to which the office is a party, and interpret
24
provisions of contracts covering work performed for the office by private entities;
2S
d) Assist in the promulgation of rules governing the activities of the office;
10


2
3
4
5
6
7
8
9
10
11
12
13
e)
Prepare comments on proposed legislation concerning the office;
f)
Assist the Solicitor General in suits involving the office or its officers or
employees, or act as their principal counsel in all actions taken in their official
capacity before judicial or administrative bodies;
g)
Assist the office in ensuring that the rights and interests of the Republic of the
Philippines are protected. in the WTO agreements, other multilateral trade,
regional, plurilateral and bilateral trade and investment agreements, and ensure
that counterpart countries comply with their obligations in the agreements;
h) Assist, unless deputized to represent, the Philippine Trade Representative m
appearing as counsel of the Republic of the Philippines in any dispute settlement
before the WTO, other multilateral trade agreements, bilateral trade agreements,
or in any other suit involving international trade; and
i)
Perform such other functions as may be directed by the PTRO.
14
SEC. 16. Inter-Agency and PriVate Sector Coordination on UnfiJir Trade Practices. -
15
In carrying out his functions and responsibilities with respect to unfair trade practices and
16
import.surges, the Philippine Trade Representative shall:
17
a)
Coordinate the use of inter-agency resources to identify, address, and resolve specific
18
cases of unfair trade practice;
19
b)
Identify and refer to the appropriate department or agency of the national
20
government for action any information identified in the report required under
21
Section 24 (b) hereof, or report other such information that establish or may show an
22
unfair trade practice because it is either:
23
1.
considered to be inconsistent with the provisions of any trade agreement, or
11


ii.
has a significant adverse impact on Philippine commerce, including on domestic
2
firms or industries that are either too small or financially weak to initiate
3
proceedings under the trade laws;
4
c)
Identify on a biennial basis, fhilippine government policies and practices that, if
5
engaged in by a foreign government, might constitute unfair trade practices under
6
Philippine law;
7
d) Designate the Legal Services Division of the PTRO to collaborate with relevant
8
agencies and stakeholders to' identify, address, and resolve specific unfair trade
9
practices identified by the Committee; and
10
e)
Perform such other acts inherent to the foregoing.
11
CHAPTERS
12
SPECIAL POWERS OF THE PHILIPPINE TRADE REPRESENTATIVE OFFICE
13
SEC. 17. Issuance of Compulsory Processes. - Pursuant to Section 6 of this Act, the
14
Philippine Trade Representative Office, in aid of trade policy formulation and negotiation,
15
shall have the power and authority to invite or summon by subpoena ad testificandum any
16
public official, private citizen or any other person to testify before it, or require any person
17
by subpoena duces tecum to produce before it such records, reports,
docume~ts or other
18
materials as it may require. There shall be a compliance within 30 days to the subpoena
19
issued otherwise any failure to comply is punishable under Section 28 of this Act.
20
SEC. 18. File Cases Against Violators. - The PTRO shall have the authority to file
21
cases and other appropriate legal actions to further its mandate under Section 6 (d) and (e),
22
and collaborate, if necessary, with relevant government agencies and stakeholders in order to
23
protect the rights and interests of the Philippines in relation to trade and trade-related
24
investments.
25
12


CHAPTER 6
2
PRIVATE SECTOR PARTICIPATION PRIVILEGES AND OBLIGATIONS
3
SEC. 19. The Multi-Sectoral Advisory Committee. - There is hereby created a Multi-
4
Sectoral Advisory Committee, hereinafter referred to as "MSAC". Pursuant to the provisions
S
of the Act particularly this Chapter, it shall function as follows:
6
a)
Committee Consultation - The Philippine Trade Representative shall seek
7
information and advice from representatives of the private sector and non-government
8
organizations on trade and investment policy based on a national development agenda aimed
9
at balancing the interests of various stakeholders with respect to:
10
I) negotiating objectives and bargaining positions before entering into a trade
11
and investment agreement;
12
2) the operation, implementation, and monitoring of any trade and investment
13
agreement once entered into;
14
3) trade remedies, dispute settlements, non-compliance and/or violations to any
15
trade and investment agreement; and
16
4) other matters arising in connection with the development, implementation
17
and administration of the trade and investment policy.
18
b) Membership and Organization - The Committee shall consist of not more than 20
19
members consisting of representatives of industry, agriculture, labor, small business, service
20
industries, retailers, and consumers. The Committee shall be broadly representative of key
21
economic sectors and groups affected by trade.
The Philippine Trade Representative shall
22
preside over the Committee, which will meet as needed at the call of the Committee
23
Chairman or the Philippine Trade Representative depending on various factors such as the
24
level of activity of trade negotiations. Members of the Committee and Subcommittees shall
2S
be appointed by the Philippine Trade Representative upon the endorsement of various non-
13


government organizations and stakeholders. Members of the committee shall serve without
,
2
either compensation or reimbursement of expenses.
3
c) Sub-sectoral AdvisOly Committees - Sub-sectoral advisory committees shall be
4
defined by the Philippine Trade Representative for trade and investment policy formulation
5
and negotiations. These Committees shall be broadly representative of the key sectors and
6
groups of the economy, particularly with respect to those sectors and groups which are
7
affected by trade and shall consist of representatives of industry, academe, agriculture,
8
fisheries, labor, small business, service industries, retailers, consumer interest and other
9
stakeholder groups.
10
d) Committee Meetings - The PTRO shall call for a regular meeting of MSAC during
II
the First and Third Quarter of the year; Provided, that a notice be given to its members at
12
least two (2) weeks prior to the scheduled MSAC meeting, and may call for special meeting
13
as may be necessary.
14
SEC. 20. Duties and Functions of the Multi-Sectoral Advisory Committee. - The
15
Committee shall have the primary duty and function to:
16
a.
Provide the Philippine Trade Representative overall policy advice on trade and
17
trade-related matters;
18
b.
Provide technical support to the Philippine Trade Representative by drawing
19
upon the knowledge and expertise of its members;
20
c.
Prior to any trade negotiation, participate in the development of the negotiation
21
objectives and bargaining positions of the country and at the conclusion of
22
negotiations for each trade agreement entered into, provide a report to the
23
Philippine Trade Representative to form part of the latter's report to the
24
President and Congress, pursuant to Section 5(g) hereof. The report of the
25
Committee shall include an assessment and evaluation of whether and to what
14


extent the agreement pro!ll0tes Philippine economic interest and achieves the
2
applicable overall and principal negotiating objectives set forth; and
3
d.
Recommend to the Philippine Trade Representative the participation of private
4
sector representative to accompany the Philippine delegation in an observer
5
capacity in trade negotiations. All expenses incurred by the
pr~vate sector
6
representative
shall be
for
the
account
of the
representative
or his/her
7
organization.
8
In order to carry out the foregoing functions, the Philippine Trade Representative
9
shall identify and accredit groups or networks of local industrial and agricultural producers
10
and exporters whose assistance may be availed of. Members of the Multi-sectoral Advisory
II
Comm!ttee shall serve without either compensation or reimbursement of expenses.
12
SEC. 21. Confidentiality Agreement. -
Members of the Multi-sectoral Advisory
13
Committee and its Sub-committees shall:
14
a)
Enter into a confidentiality agreement with the PTRO; and
15
b) Comply with other requirements established by the PTRO to protect from
16
unauthorized disclosure all classified information, and all information relating to
17
trade policy formulation and negotiation.
18
Sec. 22. The Philippine Trade Representative Office in relation to the Multi-Sectoral
19
Advisory Committee. - The Philippine Trade Representative shall also perform the following
20
functions on the Multi-sectoral Advisory Committee:
21
a)
Have the responsibility to approve and set the agenda for all Multi-sectoral
22
Advisory Committee meetings;
23
b) Provide clerical and other necessary staff support for the Multi-sectoral Advisory
24
Committee meetings; and
15


c)
Call the Multi-sectoral Advisory Committee to meet depending on various factors
2
such as the level of activity of trade negotiations.
3
CHAPTER 7
4
FINAL PROVISIONS
5
SEC.
23.
Joint
Congressional
Oversight
Committee
on
Intemational
Trade
6
Agreements. - There shall be a Joint Congressional Oversight Committee on International
7
Trade Agreement to which the PTRO shall regularly report to ensure concurrence and
8
authority regarding negotiating mandate and parameters, and shall comply immediately to
9
any order of the Joint Congressional Oversight Committee. The Oversight Committee shall
lObe composed of five (5) members from the Senate, which shall include the Senate President,
II
and the Senate Majority and Minority Floor Leaders, and five (5) members from the House of
12
Representative, which shall include the Speaker of the House, and the Majority and
13
Minority Floor Leaders.
14
The Oversight Committee shall conduct a periodic review and evaluation of the
IS
performance of the PTRO, including its officials, every three (3) years. An independent
16
panel composed of experts to be app:-,inted by the Oversight Committee shall review the
17
activities and performance of the PTRO and shall make recommendations, based on its
18
findings, to the Oversight Committee. The independent panel of evaluators shall likewise
19
conduct consultations with stakeholders in the conduct of the review.
20
SEC. 24. ReportorialRequirements. - The PTRO shall comply with the following:
21
a.) Report to Congress and to the Multi-Sectoral Advisory Committee as herein
22
created any intention to negotiate. any economic treaty, be it bilateral, regional or
23
multilateral. At the minimum, the report shall contain the subject matter for negotiations
24
and the general objectives of the government. The PTRO shall update Congress and the
25
Multi-sectoral Advisory Committee, whenever practical, on the negotiations, including the
16


•
offers and counter-offers of all the parties and shall also notify Congress and the Multi-
2
sectoral Advisory Committee of any tentative or final agreement of the parties.
3
b.) The Philippine Trade Representative shall submit a bi-annual report directly to
4
the
President,
Congress
and
the
Multi-sectoral Advisory
Committee
regarding
the
5
implementation, operation and effectiveness of any trade and investment agreement entered
6
into including the status of ongoing trade and investment negotiations, in which the
7
Philippines participates.
8
SEC. 25. Transfer ofFunctions. - The functions of the Bureau of International Trade
9
Relations and other related positions under the Department of Trade and Industry, Attaches
10
and Permanent Mission to the WTO, Association of South East Asian Nations (ASEAN) and
II
the United Nations International Organization (UNIO) are hereby transferred under the
12
direct control and supervision of the PTRO.
13
The foregoing transfer of powers and functions shall include all applicable funds and
14
appropriations, records, equipment, property, and personnel as may be necessary.
15
SEC. 26. Appropriations. - The sum of One Hundred Forty-Five Million Pesos (Php
16
145,000,000.00) is hereby authorized to be appropriated to the PTRO for the purposes of
17
carrying out its functions for the first fiscal year after the effectivity of this Act.
18
For each fiscal year thereafter, there is authorized to be appropriated to the PTRO
19
such additional sums as may be provided by law for the salaries of its officers and employees
20
to reflect pay rate changes made in ac.cordance with the Salary Standardization Act, and for
21
other purposes as may be appropriated.
22
SEC. 27. Implementing Provisions. - Within 60 days from the effectivity of this Act,
23
the President shall appoint the Philippine Trade Representative, together with his Deputies.
24
The PTRO shall, in consultation with the Departments of Trade and Industry, Agriculture,
25
and Foreign Affairs
and the National Economic
Development Authority,
issue the
17


implementing rules and regulations necessary to implement the provisions of this Act, 180
2
days from the date of appointment of the Philippine Trade Representative.
3
SEC. 28. Provision on Administrative Fines andPenalties. -
4
a.) Penalty for Non-compliance on Issuance of Compulsory Processes - Any
5
person or entity who shall fails to comply to the subpoena issued by the PTRO
6
within the 30-day deadline shall suffer the penalty of imprisonment for a
7
period of not less than six (6) months nor more than one (1) year or shall be
8
imposed a fine of not less that One hundred thousand pesos (PhplOO,OOO.OO)
9
nor more than Five hundred thousand pesos (Php500,000.00), at the discretion
10
of the court.
11
b.) Penalty for Violation of Confidentiality Agreement - Any person or entity
12
who shall violate the confidentiality agreement under this Act shall suffer the
13
penalty of imprisonment for a period of not less than six (6) months nor more
14
than one (1) year or sh~ll be imposed a fine of not less that Two hundred fifty
15
thousand pesos (Php250,000.00) nor more than Five hundred thousand pesos
16
(Php500,000.00), at the discretion of the court. The PTRO shall have the
17
power to remove the membership in the MSAC of any member in violation of
18
this provision.
19
c.) Power to Impose Administrative Fines and Penalties - After due notice and
20
hearing, the Philippine Trade Representative shall have the power to impose
21
administrative fines against any person, organizations, or any other entity, in
22
such amount as it may deem reasonable, which in no case shall be less than
23
Fifty thousand pesos (Php50,000.OO) nor more than Five million pesos
24
(Php5,OOO,OOO.00) for violations of any provisions under this Act.
18


SEC. 29. Separability Clause. _. If any section or provision of this Act shall be declared
2
unconstitutional or invalid, the other sections or provisions not affected thereby shall
3
continue to be in full force and effect.
4
SEC. 30. Repealing Clause. - A\llaws, decrees and orders or parts thereof inconsistent
5
herewith are deemed repealed or modified accordingly.
6
SEC. 31. Effectivity. - This Act shall take effect fifteen (15) days following its
7
publication in a newspaper of general circulation in the Philippines.
Approved,
19