Republic of the Philippines
House of Representatives
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

1199
COMMITTEE REPORT NO.

Submitted by the Commin yernment Reorganization, Trade and Industry, and
Appropetiions Ot UB MAR DBE

Re: House Bill No. 5977

proval in substitution of House Bill Nos. 56, 186 and 1892;

Recommending

Sponsors: Reps. Jalosjos, Garcia and Abaya

Mr, Speaker

The Committees on Government Reorganization, Trade and Industry and
Appropriations. to which were referred House Bill No. 56, introduced by Representative
Lorenzo R. Taiada I, 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”

House Bill No. 186, introduced by Representative Henry Pryde A. Teves, entitled:

“AN ACT.
EATING THE OFFICE OF THE PHILIPPINE TRADE REPRI
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES”

and House Bill No. 1892, introduced by Representative Karlo A.B. Nograles, entitled:

CREATING THE PHILIPPINE TRADE \TATIVE OFFICE, APPROPRIATING.
FUNDS THEREFOR AND FOR OTHER PURPOSES™
587?

have considered the same and recommend that the attached House Bill No. entitled
“AN ACT CREATING THE PHILIPPINE TRADE REPRESENTATIVE OFFICE,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES” be approved in
Substitution of House Bill Nos. 56, 186 and 1892 with Representatives Lorenzo R. Tafiada {11,



Henry Pryde A. Teves, Karlo A.B. Nograles, Cesar G. Jalosjos, Albert Raymond S. Garcia,
Joseph Emilio A. Abaya, Arthur R. Defensor Jr, Jorge T. Almonte and Ma. Amelita
Calimbas- Villarosa as authors thereof.

Respectfully submj

ALBERT R.
Chairman
Committes

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
Quezon City



RESENTATIVES,
Metro Manila

‘0 R. Taitada HN], Henry Pryde A. Teves, Karlo A.B.
Nograles, Cesar G. Jalosjos, Albert Raymond S. Garcia, Joseph Emilio A. Abaya, Arthur R
Almonte and Ma. Ametita Calimbas-Villarosa

Defensor Jr, Jorge 7

AN ACT

CREATING THE PHI APPINE TRADE REP
FUNDS THEREFOR,

ESENTATIVE OFFICE, APPROPRIATING
ND FOR OTHER PURPOS

Be it enacted hy the Senate und House of Represematives of the Philippines in Congress
assembled:

Section |. Title. ~ This Act shai! be known as the “Charter of the Philippine Trade
tive Off

Represen

Sev. 2, Declaration of Policy ~ Iris hereby &

jeclared the policy of the State to pursue

a wade policy that serves the general welfare, creates jobs. ensures food security and rural and

industrial development, among others,

utilizes sli forms and arrangements of exchange

on the basis of fair wade, Market

:e35_ in itself is not the end goal of trade negotiations,

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

and reasonably participate in economic decision making.

Congress has the power to regulate commerce, including commerce with foreign

nations, and has the power to re-o1

nize the bureaucracy in order to make it more responsive

to the needs of all the stakeholders in the Philippine economy and the exigencies of

international economic relations. Any international economic, commercial, or trade

agreement entered into by the Government ¢

titutes regulation of commerce and will affect

the different stakeholders in our economy, Hi

-e, it is essential that any agreement is

harmonized with existing domestic cominerciat laws and the 1987 Philippine Constitution.



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Moreover. Congr: the three (3) branches of the Government, has power

over foreign relations, especially international economic relations. Pursuant to the power of

Congress 1 regulate commerce, the State shall ensure that a single office shall, with

competence and accountability. direct, formulate, and coordinate the efforts of

hi

ernment

agencies towards formulating cohesive policies, measures, and conduct regular consultations

with stakeholders on matters pertaining io intemational trade and investment relations and

negotiations.
See. 3. Definition of Terms. ~

a) Ambassador refers to a diplomatic official accredited to a foreign sovereign or

governinent, or to an international org

wnization, to serve as the official representative of the
country. In everyday usage it applies to the ranking plenipotentiary minister stationed in a

for

gn capital. The host country typically allows the ambassador control of specific territory
called an embassy. whose territory. staff. and even vehicles are generally afforded diplomatic

immunity from most laws of the host country

b) Civil Soei

institutions that form the basis of a funct

ty refers to the totality of voluntary civic and social organizations and

2 socict ‘opposed to the formal institutions.

and structures ofa state.

¢) Commerce refers to the entire range of activities connected with the production,

itheri 12, harvesting, exchange or bus

ig and

manufacturing, accumulation.

selling of something of economic value st

icultural products, minerals, goods,

services, information, debt instruments, shares of stock or equity, derivatives, and money. It

also includes capital formation, either through debt or equity: savings; and investments.

ich as

Finally, it likewise ineludes the obligations. rights, and duties of all economic entities

hatural persons, corporations, partnerships. and governmental entiti

d) Consultation Mechanism refers to the means by which stakeholders and sectors

could participate effectively and meanin

fully in the govemmental process of drawing up our

iniemational trade policy. and in coming up with all other policies and rules affecting all

aspects of international trade.

v) Fair Trade refers to a tradic

§ Partnership. based on dialogue, transparency and

international trade. it contributes to sustainable

respect. that seeks greater equity

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development by securing and offering better trading conditions to marginalized producers

and workers.

fi 1g money to a business, either by directly buying

1) Investment refers to the act of put
oF 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,

a of an act that is not contrary to law and the

2) Legal refers to the characteriz

accession of the part

s 19 a trade and/or investment agreement.

hy) Mut

ectoral refers fo a grouping of different sectors of the economy.

ions refer to non-stock, non-profit corporations

i) Non-Government Organi
organized under the laws of the Republic of the Philippines doing charitable, educational,

religious, social, economi

ind other not-for-profit endeavors.

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

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

k) Research refers to the st

ly of the potential or actual economic implications of a
proposed or existing trade agreement and the validation of its findings among the

stakeholders.

1) Sectors refer to the ditferent economic or commercial groups composed of members

with substantially common commercial in‘erest, including business, labor, peasants, farmers,

fisherfolk, consumers, private sector. public sector, service sector, and manufacturing sector.

m) Stakeholders refer to persons or groups of persons with legitimate interest in

commerce or whose econom

well-being will be affected by any government policy or law
affecting commerce ~ either as factors in the production, sale, or distribution of goods and

Services. or as consumers or beneficiaries thereof.

h) ‘Trade refers to the yoluntary exchange of goods. services and all things of economic

value, whether or not across national borders.

0) Trade and Investment Agreement or International Trade and Investment

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

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1 rules that govern the commercial and investment transactions of persons originating from any

2 ofthe parties to the agreement. When iC is just between two countries, itis called a Bilateral

if involves more than two countries, then called a

3 dyreement, On the other band.

4 Multilateral Agreement. Regional Agreements are those among countries within the same

‘orgraphical area as contemplated by the agreement. Plurilateral Agreements are

6 — specialized agreements included in a muttilaterai

wgreement, and where the parties have the

7 option of acceding

8 P) Trade Dispute refers to a disagreement between two or more countries to a trade

9. agreement that arises when at feast one cou

adopts a trade policy measure or takes some

10 action that one or more fellow members considers to be a breach of the agreement, or a

11 fuilure (0 live up to obligations under the agreement,

i Se

Creation. ~ There is here!

created the Philippine Trade Representative

13 Office, hereinafter

ferred (0 as the Trade Office that shal! be attached to the Office of the

14 President,

15 The Trade Oifice shall be headed by the PI

lippine Trade Representative who shall

te shall hold a Cabinet rank and who shall have a fixed term of six (6) years,

17 the Trade Office shall have three (3) Deputy Trade Representatives, each of whom

18 shail hold the eank of an Under

soretary

19 The Deputies shall have a term of six (6) years each and can be re-appointed for no

20 more than a second term. OF those first appointed under this Act, one (1) Deputy shall serve

21 for six (6) years, another Deputy for four (4) years and another Deputy for two (2) years.

2 Within thirty (30) days from ttic efivetivity of this Act, the President shall appoint the

23. Philippine Trade Representative with the confirmation of the Commission on Appointments.,

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ther with the Deputy ‘Trade Representatives upon the endorsement of various

25 stakeholders.

26 Section S Qualifications and Limitation on Appointments. -

2 &) Qualifications. ~ The Philippine Trade Representative and Deputy Trade

28 Representatives must be natural-bomn citizens of the Philippines. at least thirty-five (35) years

29 of'age, with the exception of the Philippine Trade Representative who should be at least forty

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(40) years of age, of good moral character. unquestionable integrity, and known probity and

ness,

patriotism, and must have academic training, experience, and competence in bu:

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

The Philippine Trade Representative and Deputy Trade Representatives shall not,

during their tenure in office, engage in the practice of any profession, or intervene directly or
indirectly in the management or control of any private enterprise which may, in any way. be
affected by the functions of their office, nor shall they be financially interested, whether
directly or indirectly, in any contract with the 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 conflict of interest in the conduct of their office.

b) Limitations on Appointments: Disqualifications. ~ No person shall be
appointed Philippine Trade Representative or Deputy Trade Representative if the person has
directly represented, aided. or advised a foreign entity in any trade and/or investment

negotiation or trade dispute against the Philippines.

Likewise, the Philippine Trade Representative, the Deputy Trade Representatives, and
all members of the research group and legal team of the Trade Office shall not be allowed to
be employed, commissioned, or retained by foreign entities, or to do any kind of consultancy
or related work for foreign clients on trade and investment issues within two (2) years after
ine Trade

the expiration or termination of their service with the Office of the Phili

Representative. They shall likewise maintain at all times the confidentiality of all matters that

they have handled during their service with the Trade Office.

Sec. 6. Functions and Responsibilities of the Trade Office. - he Vrade Office shall:

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

fabase that shall include, but not be limited to. trade

b) Obtain, collate and maintain a
and investments statistics, trade and investment -related laws, policies, trade and investments,
agreements, and initiatives which have implications on the development of the Philippine
negotiating position in trade and investment agreements, and which shall be accessible to the

stakeholders:


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©) Undertake consultations with stakeholders in ail aspects of trade policy formulation

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and negotiation. Stakeholders must also t ly involyed in formulating positions related
to trade and investment negotiations in line with the national development agenda:

d) Formulate the Philippine Trade position aimed to support the achievement of the

economic goals defined in the Constitution that is a product of a regular and meaning!

consultation with relevant government

cies and various civil society stakeholders:
€) Negotiate trade and investment agreements on the basis of the Philippine Constitution

and other laws, and represent the Philippines in all i

nternational trade negotiations, including,

but not limited to. any matter considered under the auspices of world trade organizations, and

other regional and bilateral commodity and direct investment negotiations in which the

Philippines participates:

1) Advise the President and Congress on international trade and investments policies and

son the domesti

their implica economy and the impact of domestic policies on

international trade and invesuments commitment:

8) Assert and protect the rights and interests of the Philippines under all bilateral,

nal and multilateral trade and investment agreements by coordinating quick and decisive

inter-

geNey response including but not limited to cases of unfair trade practices, import
surges and rules on investment:

h) Provide the necessary staff support to the Mutli-Sectoral and Sub-Sectoral Advisory

Committee and the Int Committe:

ney Coordinating

i) Appoint, employ and fix the compensation in accordance with existing compensation

laws of such officers and employees as are necessary and prescribe their authority and duties,

subject to Civil Service Commission laws. rules and regulations;

ji} Employ and compensate experts and consultants in accordance with the relevant laws;

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

}) Enter into and perform such contracts, leases, cooperative agreements, or other

transactions as may be necessary in the conduct of the work of the Office and on such terms

as the Philippine Trade Representative may deem appropriate with any agency or

instrumentality of the Philippine government or with any public or private person, firm,
association, corporation or institution: and

m) Adopt an official seal which shall be judicially noticed


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7. Functions of the Philippine Trade Representative. - The Philippine Trade
sof the Trade Office:

ee

Representative may, for the purpose of carrying out the functi

a) Create the organizational structure of the Trade Office consistent with its mandate and

to strategic needs, and review the structure

functions provided in this Act and accondi

regularly:

b) Head the Trade Office and exercise contro! and supervision over all its functions,

activities,and its organization;
©) Serve as the chief trade negotiator of the Philippines in international trade and

ced to, the World Trade Organization, regional.

investment agreements. including, but not fin
bilateral and plurilateral negotiations, in which the Philippines participates, and shall be
responsible for the conduct of such;

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

©) Chair the Interagency Coordinating Committee on international trade and
investments;

f) Monitor and enforce the implementation of Philippine International Trade policy.
including direct investment matters to the extent that they are related fo international trade
policy:

2) Coordinate with national agencies in the performance of functions, including the right

to isstie compulsory processes purstiant to See. 15 of this Act;

fh) Call upon and deputize. én tines of trade policy formulation and negotiations, the
national agencies and their personnel, and correspondingly use the services of the deputized
agency, whose functions are related to or affect international trade policy. including direct

investment matters to the extent that these are related to international trade policy:

i) Co-chair the Multi-Sectoral Advisory Committee in its regular and special meetings;
and
j) Perform such other functions inherent to the functions of the Philippine ‘Trade

Representative and as the President may direct pursuant to this Act.

Sec. 8. Ex-officio positions and functions of the Philippine Trade Representative. - The
Philippine Trade Representative shali be entitled to the following ex-officio positions and

functions:



1 8) Senior representative on any body that the President may establish for the purpose of

advising the President on over-all economic policies in which international trade
3 matters predominate; and

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

gq international trade is a major topic.

6 See, 9. Functions and Duties of the Deputy Trade Representatives. ~ The Deputy Trade

7 _ Representatives shall have as principal function the conduct of trade negotiations under this,

8 — Actand shail have such other finctions as the Philippine Trade Representative may direct, to

9 wit
10 a) Lead the negotiations for their respective sectors and/or areas of concern;

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

B ©) Ensure proper coordination among the various government agencies involved in their
4 fic sectors of concer and harmonize contlicting negotiating positions;

)_ Prepare secior-specific proposals and negotiating positions and strategies; and

16 €) Perform all other functions as may be delegated by the Philippine Trade
7 Representative, or as may be required by the nature or exigencies of their foregoing
18 fimetions and responsibilities.

19 Sec. 10. Inter-Agency Coordinating Committee and Sub-Committees. - In connection

20 with the performance of the functions, the Philippine Trade Representative shall, to the extent
21 necessary for the proper administration and execution of the trade and investment agreements

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

23 the Philippine Trade Representative shall consult with concemed agencies and any other
24 agency on trade and investment policy issues, without prejudice to the exercise by the
25 Bangko Sentrat ng Pilipinas of its authority as an independent central monetary authority
26 under the Constitution and Republic Act No. 7653 or the New Central Bank Act. All agencies

27 consulted by the Philippine Trade Representative shall participate actively, cooperate fully,

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

29 requested.



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ney Sub-Committees to provide inputs and

Further. there is hereby created Inter-

Support te the Deputy Trade Represe:

See, 1. Membership in the NEDA Board, ~The Philippine Trade Representative shall

be a member of the N | Economie Development Authority (NEDA) Board which was

created under Executive Order No. 230. The Philippine ‘Trade Representative shall have the

same rights and obligations as all the other m

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

le ON

Both Services shall comprise the T

See. |3. The Frade Research, Data Coltection, Analysis and Dissemination Service. -

The Trade Research, Data Coilecti and Dissemination Service under the

Trade Office shall have the following specific functions and responsibilities:

4) Improve and strengthen the capacity of the Trade Office on research, data collection,

analysis, and dissemination of trade and investments statistics, laws and policies, agreements

and other related information.

b) Generate, maintain, and update revords/files of comprehensive national and

intemaiional trade statistic, tariff’ and non-tariif measures, and investment-related data;

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

d) Provide the ‘a and information and other relevant

neral public access to trade d

documents throx ications, ete.;

h online databases. journals. put

¢) Collaborate with government and non-government research institutions in research

conceming trade and investments policies

programs in relation to. the national
development program:

1) Tap the foreign trade service corps to get market intelligence information with regard
to commercial, indusirial and general economic conditions, as well as non-economic

conditions. affecting Philippine products both in the export and domestic markets:


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

or facilitate the condi

h) Cond of trainings and courses for the benefit of the
technical stalf of the office and other government personne! directly or indirectly engaged in

wade and investment policy work in order to build, improve and enhance the capacity and

competence in trade and investment nego

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

responsibilities:

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

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

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

d) A:

¢) Prepare comments on proposed legisla

ist in the promulgation of rules governing the activities of the Trade Office;

n concerning the Trade Office;

f) Assist the Solicitor General in suits involving the Trade Office or its officers, or

employees or act as their principal counsel in all actions taken in their official capacity before

judicial or administrative bodies:

8) Assist the Trade Office in ensuring that the rights and interests of the Republic of the

Philippines are protected in the World ‘Trade Organization agreements, other multilateral

trade , regional, plurilateral and bilateral trade and investment agreements; and ensure that the

counterpart countries comply with their obligations in the agreements;

h) Represent the Republic of the P'
‘Trade Or

ilippines in any dispute settlement before the World

nization, 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 Philippine Trade

Representative

Sec. 15. Issuance of Compulsory Processes. - Pursuant to Section 7 of this Act, the Trade

Office, in aid of trade policy formulation and negotiations, shall have the power and authority

to invite or summon by subpoena ad testificandum any public official, private citizen or any

other person to testify before it, or require a

y person by subpoena duces tecum to produce

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€ it such records, reports, documents or other materials as it may require, There shall be
a compliance within thirty (30) days to the subpoena issued: otherwise any failure to comply

is punishable under Sec. 24 of this Act

See. 16. Filing of Cases -

igainst Violators. - The Trade Office shall have the authority to
file eases and other appropriate legal actions to further its mandate under Section 7 (f) and (g)
and collaborate, if necessary, with relevant government agencies and stakeholders in order to
protect the rights and interests of the Philippines in relation to trade and trade-related

investments,

See. 17. The Multi:

jectoral Advis

Sectoral /

visory Committee. het

The MSAC shail be

business. service industries. retailers, and consumers and shall be broadly representative of

omposed of representatives of industries. agriculture, labor, small

key economic sectors and groups affected by trade.

Members of the MSAC and Subcommittees shall be appointed by the Philippine Trade
Representative upon the endorsement of various non-government organizations and

sk

holders. Members of the MSAC shall

ve without either compensation or

reimbursement of expenses.

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

negotiations,

See. 18. Duties and Functions of the M

ME

advice to the Philippine Trade Representative on trade and trade-related matters towards the

The MSAC shall provide information and

achievement of the economic goals defined in the 1987 Constitution that are aimed at

balancing the interest of these various stakeholders with respect to:

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

once entered into:

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c) trade remedies, dispute settlements, non-compliance and/or violations to any trade and

investment agreement: and

«) other matters arising in connection with the development, implementation and

adininistration of the tra:

In addition, the MSAC

and investment poli

all:

spon the

a) Provide technical support to the Philippine Trade Representative by drawi

of the members:

knowles

Iye and expert

b) Prior to any trade negotiations. participate in the development of the negotiation

jation for its

objectives and bargaining positions of the country and at the conclusion of neg:

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 io See.6 (9 hereof. The

report of the MSAC shall include an assessment and evaluation of whether and to what extent

ests and achieves the applicable overall

Nic int

the agreement promotes Philippine econ

tives sel forth:

and principal negotiating obje

ii advise the Philippine delegation in trade and

¢) Be allowed to accompany

ns: and:

investment negotiation missi

d) Recommend to the Philippine Trade Representative the participation of private sector

ine delegation in an observer capacity in trade

representative (© accompany the Phill

negotiations.

See. 19, Meetings, Agenda and Staff Support. - Vhe Philippine Trade Representative

shall:

needed at the call of the MSAC Chairman

a) Preside over the MSAC. which will meet as

factors such as the level of

br the Philippine Trade Represemative depending on variox

activity of trade negotiations:

the First and Third Quarter of the year and

b) Call fora regular meeting of MSAC during
may call for special meeting as may be necessary depending on various factors such as the

level of activity of trade negotiations:

©) Approve and set the agenda for all MSAC meeting

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

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See, 20. Sub-Sectoral Advisory Committee. - There is hereby created a Sub-Sectoral

“SSAC* to be defined by the Philippine

Advisory Committee, hereinafter referred to as

Trade Representative for trade and investment policy formulation and negotiations,

The SSAC shall be broadly representative of the key sectors and groups of the economy,
particularly with respect to those sectors and groups which are affected by trade and shall
consist of representatives of industry, academe, agriculture, fisheries, labor. small business,

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

Members of the MSAC and SSAC shall be appointed by the Philippine Trade
government organizations and

Representative upon the endorsement of various non:
stakeholders, Members of the Committee shall serve without either compensation or

reimbursement of expenses.
The Chairperson of the MSAC and SSAC shall be elected by its members.

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

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

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

formulation and negotiation.

See. 22. Joint Congressional Oversight Committee on Trade and Investment

Matters. - There shall be a Joint Congressional Oversight Committee on Trade and

{ovestment matters, hereinafter referred {0 as the “Congressional Oversight Committee”. to
which the Trade Office shall regularly report to ensure concurrence and authority regarding,
negotiating mandate and parameters, and shall comply immediately to any order of the Joint
Congressional Oversight Committee. ‘The Oversight Committee shall be composed of five

(5) members from the Senate, which shall inelude the Senate President, the Senate majority

and Minority Leaders. and five (5) members from the House of Representatives which shall

include the Speaker of the House and the Majority and Minority Leaders.

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

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

review

See. 23. Reportorial Requirements. - The Trade Office shall comply with the follow:

ice and to the MSAC as herein created any

8) Report to Congre

ional Oversight Comn

intention to negotiate any economic treaty, be it bilateral, regional, or multilateral, At the

minimum, the report shall contain the subject matter for negotiations and the general

objectives of the government. The Trade Office shall update the Congressional Oversight
's of all

Committee and the MSAC on the negoti cluding the offers and counter-of
the parties and shall also notify the Congressional Oversight Committee and the MSAC of
any Centalive or final agreement of the parties:

b) Report at least twice a year and as may be directed by the President or the

Congressional Oversight Committee and as may be requested by MSAC on the developments

oF any intemational trade and investment negotiations and/or Agreements; and

©) Submit a bi-annual report directly to the President, the Congressional Oversight
Comnmittee and the MSAC regarding the implementation. operation and effectiveness of any
trade and investment agreement entered into including the status of ongoing trade and

jations, in which the Philippines participates.

investment nego
See. 24. Administrative Fines And Penalties. -

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

discretion of the Court.

b) Violation of Confidentiality of Agreement ~ Any person or entity who shall violate

the confidentiality of agreement under this Act shall suffer the penalty of imprisonment for a
petiod of not less than six (6) months and not more than one (1) year or shall be imposed a

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nd Pesos (PH250,000) and not more than Five

the Court, The Trade Office shall

fave the power to remove any member who viv jon from membership in the

MSAC

©) Other Violations ~ Atier due notice and hearing. the Philippine Trade Representative

shall have the power to impose adminisicative fines against any person, organization, or any

alount as it may be reasonable which in no case shall be less than Fifty

other entity. in sue

thousand Pesos (PH50,000) and not niore than Five Million Pesos (PH5,000,000) for any

violation of any provision under this Act

functions of the Bureau of fnternational Trade

See. 25. ransfer of Functions

industry, Attaches and Permanent Mission to

Relations under the Department of Trade

the WLO, Assoei

1 of Southeast ations (ASEAN) and United Nations

NIQ), and

international Organization (

ing and policy-making functions of

the ‘Tarif and Related Matters Conmnittee (YRMC) are hereby transferred to the Trade

Olfice,

inciude all applicable funds and

may be necessary.

See. 26. Trunsitory Prevision - Whe Varilt and Related Matters Committee (TRMC)

creaicd under Section 6 of Executive Onder No. 230, series of 1987. together with the

Technical Committee on WTO Matters shall con

ue to function for six (6) months or until

fever cor

the Trade Olfice is set up

earlier, after which they shall cease to function.

See. 27. fmplementing Rules and Regulations. - Yhe Trade Office shall. in consultation

With the Department of Trade 2

Industry, the Department of Agriculture, and the

Deparunent of Foreign Aflairs and the NEDA, issue

ie rules and regulations necessary to

implement the provisions of this Act si

(60) days from the date of appointment of the
Philippine Trade Representative
See. 28. Appropriations. - ‘the amount necessary to implement the provisions of this Act

Shall be charged against the current ye

opriations of the Bureau of International Trade
Relations under the Department of Trade and indusiry, Attaches and Permanent Mission (0.
the WIO, ASEAN and UNIO. the TRMC a

id other concerned agencies. Thereatter. such

15


ucts ay onay be neeessary for ies contisuse bmg

mentation shall be included in the annust

‘scsictal Sppropriations Act

Ses 8 Repeating Clause - MH lass,

soc Effectivity Clause, - this Act stil

Separubitity Clause - h sxy v2ctivn ov provision of this Act shall be declared

the other scett-as ce provisions not atfected thereby shalt

itursamal or inal

2 ihe in hall force and erect.

ions and other issuances

ies and regula

ction 6 of Executive Order 230

Wisions of this et

nsstent with the pe

of [987 and relevant provisions of tsecutive Order No. 133 series of 1987 are dented

rdinigts

fed revubed! ur repealed

ke effect fifteen (15) days following iss

jon ip two (2) newspapers Ut general circulation or in the Oficial Gazette


House of Representatives
Committee Affairs Department
FACT SHEET
House Bill Nos. 56, 186 and 1892

Charter of the Philippine Trade Representative Office

introduced by REPS. LORENZO R. TANADA Ill, HENRY PRYDE A. TEVES AND KARLO

A.B. NOGRALES
Committee Referral: Commitiec cn Government Reorganization (Pamary)
Commitiee Chairperson. Rep Cesar G. Jalosjos
Committee Referral. Comnuttee on Trade and Indusiry {Secondary}
Committee Chairperson. Rep Albert Raymond S. Garcia
Committee Referral: Commitiee on Appropriations (Secondary)
Committee Chairperson Rep. Josepn Emilio A, Abaya

OBJECTIVES;

* To estaolish a single entity principally responsible for monitoring and maintaining a

cohesive and coherent trade policy vis-a-vis our naticnal interest

To ensure greater accountability of our trade negotiators with regard to trade and
investment agreements,

To beef up the country's negouatng capacity by building up datsoases. trade
Intelligence work, having solid research analysts and a legal team

Ta involve Congress in formulating 3 segotiating mandate before avy neg:
take place,

To put in place mandatory consultative mechanisnis for greater participation af the
Frivate sector as well as Civil society organizations in trade negotiations

To provide closer coordination between the Philippine Trade Representative, the
various departments involved and Congress

stons

KEY PROVISIONS:

Creates the Phiippine Trade Representatwe Office that shall lead direct formuiate
ana coordinate goverment agencies towards formulating coherent and cohesive
policies. positions and measures. and conduct regular stakehoiders consuitation
itn respect {0 international trade ard investment relations and negotiations

Provides that the Trade Office shail be headed by the Philiopine Trade
Representative who shall be apporrted by the President and confirmed by the
Commission on Appointments.

Provides that the Trade Office shalt negotiate trade and investment agreemer:s on
the basis of the Philippine Consttut:on and othe" jaws, and represents the country in
all international trade negoffations

Provides that the Tariff and Related Matters Committee (TRMC} together with the
Technical Committee on WTO Matters shail continue fo function for six (6) months



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

RELATED LAWS:

+ Sec. 6 of E.O. No. 230, series of 1987
+ E.ONo. 133, series of 1987