FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
, 
S. No. 
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INTRODUCED BY THE HONORABLE 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 the China-ASEAN FTA. Recently, the 
Philippine government concluded bilateral negotiations with Japan, pending ratification by 
the Senate, and is considering bilateral talks with the US, 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 (TKMC) 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 WTO 
Matters (TCWM), which is supported by the WTO Desk of the Bureau of International 
Trade Relations (BITR) of the DTI. The TCWM has technical subcommittees on agriculture, 
services, industrial goods, and other rules, which are headed by the DA, NEDA, DTI-BOI, 
and DTI respectively. The TKMC, 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-Philippines Economic Partnership Agreement (JPEPA). Its 
Secretariat falls under BITR-DTI. Finally, the Department of Foreign Affairs - being the 
primary agency involved in international relations - is likewise involved in the functions 0.f 
these committees. 


Clearly, there is in the current structure a replication of functions and fragmentation 
of authority, which does not serve 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 
formulation and negotiations into one comprehensive institution. Budgetary support shall be 
granted to trade policy research and skill 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 this bill is earnestly sought. 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
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INTRODUCED BY THE HONORABLE MAR ROXAS 
AN ACT 
CREATING THE PHILIPPINE TRADE REPRESENTATIVE OFFICE, 
APPROPRIATING FUNDS THEREOF, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Phirippines in Congress 
assem bled: 
SECTION 1. Title. This Act shall be known as the “Charter of the Philippine Trade 
Representative Office.” 
SEC. 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. 
SEC. 3. Creation. There is hereby created within the Office of the President the 
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. 


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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 (6) 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. 
SEC. 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. 
SEC. 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. 
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e) Act as the chief spokesperson for the President on international trade agreements and 
trade policy. 
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. 
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h) 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. 
Coordinate quick and decisive inter-agency response to specific cases of unfair trade 
practices and import surges. 
j) 
Be the chairperson of the inter-agency committee on Tariff and Related Matters (TRM). 
k) Perform such other functions as the President may direct. 
i) 
SEC. 6 . Ex-officio positions and functions of the Philippine Trade Representative. 
The Philippine Trade Representative shall: 
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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) Be included as a participant in all economic summits and other international meetings at 
which international trade is a major topic. 
SEC. 7. Powers of the Philippine Trade Representative. 
The Philippine Trade 
Representative may: 
a) Delegate any of his functions, powers and duties to officers and employees of the Trade 
Office as he may designate; and 
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 
consult 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 
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instrumentality of the Philippine government or with any public or private person, 
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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. 
SEC. 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 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. 
SEC. 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. 
SEC. 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; 
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c) Identify 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. 
ii. has a significant adverse impact on Philippine commerce, including on domestic 
considered to be inconsistent with the provisions of any trade agreement, or 
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 purposes 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 
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. 
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SEC. 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 
(0 Department of Foreign Affairs 
(g) Bangko Sentral ng Pilipinas 
(h) Tariff Commission 
(i) National Statistical Coordination Board 
(j) Bureau of Customs 
(k) 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 to trade and 
investments to ensure that there is a consolidated governmental position on trade and trade- 
related investment issues. 
SEC. 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 Bureaus and Offices under the Department of Agriculture, the Department of 
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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. 
SEC. 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 the 
concerned Cabinet officers. The Philippine Trade Representative shall preside over the 
Advisory Committee. 
SEC. 14. Duties and Functions. The Committee 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(rr\ hereof. The reuort of the Committee shall include an assessment and 
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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 
representative to accompany the Philippine delegation in an observer capacity in trade 
negotiations. All expenses incurred by the private sector representative shall be borne by 
the same andor hisher 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 
shall identify and accredit groups or networks of local industrial and agricultural producers 
and exporters whose assistance may be availed of. 
SEC. 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; 


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c. Members of the committee shall serve without either compensation or reimbursement of 
expenses. 
d. The committee will meet as needed at the call of the Philippine Trade Representative 
depending on various factors such as the level of activity of trade negotiations. 
SEC. 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 
functions 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. 
SEC. 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 
consultation with the Departments of Trade and Industry, Agriculture, and Foreign Affairs 
and the National Economic Development Authority, issue the necessary rules and 
regulations to implement the provisions of this Act. 
SEC. 18. Separability Clause. If any section or provision of this Act shall be declared 
unconstitutional or invalid, the other sections or provisions not affected thereby shall 
continue to be in full force and effect. 
SEC. 19. Repealing Clause. - All laws, decrees and orders or parts thereof inconsistent 
herewith are deemed repealed or modified accordingly. 
SEC. 20. Effectivity. - This Act shall take effect fifteen (15) days following its 
publication in a newspaper of general circulation in the Philippines. 
Approved, 
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