,.-
~I:!wh: 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
(@lh:r llf HUi ;'h'<"'.·fhlf~ 
First Regular Session 
) 
'13 
JUL 29 r5 :16 
SENATE 
1149 
S.NO. __ _ 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
In the context of a globalizing world, the Philippines is one of the countries which liberalized 
identified sectors in its economy in order to reach global market while maintaning its local 
industries' advantage. The government has participated in different trade and investment 
agreements with other countries, both as an independent country and as part of trading blocs, in 
an effort to spur economic development in the country. 
As the numbers of our country's trade and investment agreements with other countries continue 
to grow, the Philippines, however, lacks a dedicated government agency that consolidates and 
studies the impact of these agreements vis-it-vis our development goals and national interest. 
This bill, thus, seeks to create the Office of the Philippine Trade Representative which shall 
formulate cross-trade strategy that is cohesive with our development goals in order to maximize 
our country's benefits in agreements that we enter into. This Office will be the central agency 
responsible for all these trade agreeinents. 
Under this bill, it will be mandated to formulate national and domestic priorities, as well as trade 
positions in line with country's economic goals; advise the President and the Congress on the 
impacts of agreements we wish to enter; assert and protect the rights and interests of the 
Philippines under all bilateral, regional and multilateral trade and investment agreements; and 
represent the country in all agreements it wish to enter into. 
This measure was filed and approved in the House of Representatives during the 15th Congress. 
In view of the foregoing, the immediate approval of this bill earnestly recommended. 
Senator 
1 


-----------
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
i>f't'lnTt' 
{f}Htfl' .If Hil: §~ Hf't-'.lf~ 
First Regular Session 
) 
'13 
JUL 29 P 5 :16 
SENATE 
S.NO. 1149 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
CREATING 
THE 
PHILIPPINE 
TRADE 
REPRESENTATIVE 
OFFICE, 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
I 
SECTION 1. Title. - This Act shall be known as the "Charter of the Philippine Trade 
2 
Representative Office." 
3 
4 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to pursue a 
5 
trade policy that serves the general welfare, creates jobs, ensures food security and rural and 
6 
industrial development, among others, utilizes all forms and arrangements of exchange on the 
7 
basis of fair trade. Market access in itself is not the end goal of trade negotiations. 
8 
9 
It is also the declared policy of the State to ensure the right of the people and their 
10 
organizations to be duly informed on matters of public concern and the right to effectively and 
II 
reasonably participate in economic decision making. 
12 
13 
Congress has the power to regulate commerce, including commerce with foreign nations, 
14 
and has the power to reorganize the bureaucracy in order to make it more responsive to the needs 
IS 
of all the stakeholders in the Philippine economy and the exigencies of international economic 
16 
relations. Any international economic, commercial or trade agreement entered into by the 
17 
government constitutes regulation of commerce and will affect the different stakeholders in OUf 
I 


, . 
1 
economy. Hence, it is essential that any agreement IS harmonized with existing domestic 
2 
commercial laws and the 1987 Philippine Constitution. 
3 
4 
Moreover, Congress, as one of the three (3) branches of the government, has the power 
5 
over foreign relations, especially international economic relations. Pursuant to the power of 
6 
Congress to regulate commerce, the State shall ensure that a single office shall, with competence 
7 
and accountability, direct, formulate and coordinate the efforts of government agencies toward 
8 
formulating cohesive policies, measures and conduct regular consultations with stakeholders on 
9 
matters pertaining to international trade and investment relations and negotiations. 
10 
11 
SEC. 3. Definition o/Terms.-
12 
13 
(a) Ambassador refers to a diplomatic official accredited to a foreign sovereign or 
14 
government, or to an international organization, to serve as the official representative of the 
15 
country. In everyday usage, it applies to the ranking plenipotentiary minister stationed in a 
16 
foreign capital. The host country typically allows the ambassador control of specific territory 
17 
called an embassy, whose territory, staff and even vehicles are generally afforded diplomatic 
18 
immunity from most laws of the host country. 
19 
20 
(b) Civil society refers to the totality of voluntary civic and social organizations and 
21 
institutions that form the basis of a functioning society as opposed to the formal institutions and 
22 
structures of a State. 
23 
24 
(c) Commerce refers to the entire range of activities connected with the production, 
25 
manufacturing, accumulation, gathering, mining, raising, harvesting, exchange or buying and 
26 
selling of something of economic value such as agricultural products, minerals, goods, services, 
27 
information, debt instruments, shares of stock or equity, derivatives and money. It also includes 
28 
capital formation, either through debt or equity, savings and investments. Finally, it likewise 
2 


~~--- -------------
, . 
includes the obligations, rights and duties of all economic entities such as natural persons, 
2 
corporations, partnerships and governmental entities. 
3 
4 
(d) Consultation mechanism refers to the means by which stakeholders and sectors could 
5 
participate effectively and meaningfully in the governmental process of drawing up our 
6 
international trade policy, and in coming up with all other policies and rules affecting all aspects 
7 
of international trade. 
8 
9 
(e) Fair trade refers to a trading partnership, based on dialogue, transparency and respect, 
10 
that seeks greater equity in international trade. It contributes to sustainable development by 
II 
securing and offering better trading conditions to marginalized producers and workers. 
12 
13 
(f) Investment refers to the act of putting money to a business, either by directly buying or 
14 
leasing assets, hiring personnel and entering into a whole gamut of contracts needed to run an 
15 
ongoing concern, or by buying equity in a business - typically in the form of shares of stock. 
16 
17 
(g) Legal refers to the characterization of an act that is not contrary to law and the 
18 
accession of the parties to a trade and/or investment agreement. 
19 
20 
21 
(h) Multisectoral refers to a grouping of different sectors of the economy. 
22 
(i) Nongovernment organizations refer to nonstock, non-profit corporations organized 
23 
under the laws of the Republic of the Philippines doing charitable, educational, religious, social, 
24 
economic and other not-for-profit endeavors. 
25 
26 
(j) Private sector refers to that sector of the economy that is owned by or is composed of 
27 
private individuals, including natural persons doing business in their personal capacity. 
28 
3 


, ' 
1 
(k) Research refers to the study of the potential or actual economic implications of a 
2 
proposed or existing trade agreement and the validation of its findings among the stakeholders. 
3 
4 
(I) Sectors refer to the different economic or commercial groups composed of members 
5 
with substantially common commercial interest, including business, labor, peasants, farmers, 
6 
fisherfolk, consumers, private sector, public sector, service sector and the manufacturing sector. 
7 
8 
(m) 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, ·saJe. or distribution of goods and" 
II 
services, or as consumers or beneficiaries thereof. 
12 
13 
(n) Trade refers to the voluntary exchange of goods, services and all things of economic 
14 
value, whether or not across national borders. 
15 
16 
(0) Trade and Investment Agreement or International Trade and Investment Agreement 
17 
refers to an accord whereby two (2) or more countries bind themselves to a set of rules that 
18 
govern the commercial and investment transactions of persons originating from any of the parties 
19 
to the agreement. When it is just between two (2) countries, it is called a Bilateral Agreement. 
20 
On the other hand, if it involves more than two (2) countries, then it is called a Multilateral 
21 
Agreement. Regional Agreements are those among countries within the same geographical area 
22 
as contemplated by the agreement. Plurilateral Agreements are specialized agreements included 
23 
in a Multilateral Agreement, and where the parties have the option of acceding. 
24 
25 
(p) Trade dispute refers to a disagreement between two (2) or more countries to a trade 
26 
agreement that arises when at least one (1) country adopts a trade policy measure or takes some 
27 
action that one (I) or more fellow members consider to be a breach of the agreement, or a failure 
28 
to live up to obligations under the agreement. 
29 
4 


I 
SEC. 4. Creation. - There is hereby created the Philippine Trade Representative Office, 
2 
hereinafter referred to as the Trade Office, that shall be attached to the Office of the President. 
3 
The Trade Office shall be headed by the Philippine Trade Representative who shall hold a 
4 
Cabinet rank and who shall have a fixed term of six (6) years. The Trade Office shall have three 
5 
(3) Deputy Trade Representatives, each of whom shall hold the rank of an Undersecretary. The 
6 
Deputies shall have a term of six (6) years each and can be reappointed for no more than a 
7 
second term. Of those first appointed under this Act, one (l) Deputy shall serve for six (6) years, 
8 
another Deputy for four (4) years and another Deputy for two (2) years. Within thirty (30) days 
9 
from the effectivity of this Act, the President shall appoint the Philippine Trade Representative 
10 
with the confirmation of the Commission on Appointments, together with the Deputy Trade 
II 
Representatives upon the endorsement of various stakeholders. 
12 
13 
14 
SEC. 5. Qualifications and Limitations on Appointments. -
IS 
(a) Qualification. -
The Philippine Trade Representative and Deputy Trade 
16 
Representatives must be natural-born citizens of the Philippines, at least thirty-five (35) years of 
17 
age, with the exception of the Philippine Trade Representative who should be at least forty (40) 
18 
years of age, of good moral character, unquestionable integrity and known probity and 
19 
patriotism, and must have academic training, experience and competence in business, economics, 
20 
international trade law and policy or trade negotiations. 
21 
22 
The Philippine Trade Representative and Deputy Trade Representatives shall not, during 
23 
their tenure in office, engage in the practice of any profession or intervene directly or indirectly 
24 
in the management or control of any private enterprise which may, in any way, be affected by the 
25 
functions of their office, nor shall they be financially interested, whether directly or indirectly, in 
26 
any contract with the government or in any franchise or special privilege granted by the 
27 
government or any subdivision, agency or instrumentality thereof, including government-owned 
28 
or -controlled corporations or their subsidiaries. They shall strictly avoid conflict of interest in 
29 
the conduct of their office. 
5 


1 
2 
(b) !--imitations on Appointments; Disqualification. - No person shall be appointed 
3 
Philippine Trade Representative or Deputy Trade Representative if the person has directly 
4 
represented, aided or advised a foreign entity in any trade and/or investment negotiation or trade 
5 
dispute against the Philippines. 
6 
7 
Likewise, the Philippine Trade Representative, the Deputy Trade Representatives and all 
8 
the members of the research group and legal team of the Trade Office shall not be allowed to be 
9 
employed, commissioned or retained by foreign entities, or to do any kind of consultancy or 
10 
related work for foreign clients on trade and investment issues within two (2) years after the 
II 
expiration or termination of their service with the Office of the Philippine Trade Representative. 
12 
They shall likewise maintain at all times the confidentiality of all matters that they have handled 
13 
during their service with the Trade Office. 
14 
15 
SEC 6. Functions and Re~ponsibj[ities of the Trade Office. - The Trade Office shall: 
16 
17 
(a) Conduct research and legal studies related to trade and investments that will enhance 
18 
trade policy formulation; 
19 
20 
(b) Obtain, collate and maintain a database that shall include, but not be limited to, trade 
21 
and investments statistics, trade and investment related laws, policies, trade and investment 
22 
agreements and initiatives which have implications on the development of the Philippine 
23 
negotiating position in trade and investment agreements, and which shall be accessible to 
24 
stakeholders; 
25 
26 
(c) Undertake consultations with stakeholders in all aspects of trade policy formulation 
27 
and negotiation. Stakeholders must also be directly involved in formulating positions related to 
28 
trade and investment negotiations in line with the national development agenda; 
29 
6 


1 
(d) Formulate the Philippine trade position aimed to support the achievement of the 
2 
economic goals defined in the Constitution that is a product of a regular and meaningful 
3 
consultation with relevant government agencies and various civil society stakeholders; 
4 
5 
(e) Negotiate trade and investment agreements on the basis of the Philippine Constitution 
6 
and other laws, and represent the Philippines in all international trade negotiations including, but 
7 
not limited to, any matter considered under the auspices of world trade organizations and other 
8 
regional and bilateral commodity and direct investment negotiations in which the Philippines 
9 
participates; 
10 
11 
(f) Advise the President and Congress on international trade and investments policies and 
12 
their implications on the domestic economy and the impact of domestic policies on international 
13 
trade and investments commitments; 
14 
15 
(g) Assert and protect the rights and interests of the Philippines under all bilateral, 
16 
regional and multilateral trade and investment agreements by coordinating quick and decisive 
17 
inter-agency response including, but not limited to, cases of unfair trade practices, import surges 
18 
and rules on investment; 
19 
20 
(h) Provide the necessary staff support to the Multi-Sectoral and Sub-Sectoral Advisory 
21 
Committees and the Inter-Agency Coordinating Committee; 
22 
23 
(i) Appoint, employ and fix the compensation in accordance with existing compensation 
24 
laws of such officers and employees as are necessary and prescribe their authority and duties, 
25 
subject to Civil Service Commission laws, rules and regulations; 
26 
27 
28 
U) Employ and compensate experts and consultants in accordance with relevant laws; 
7 


1 
(k) Promulgate such rules and regulations as may be necessary to carry out the functions, 
2 
powers and duties vested herein; 
3 
4 
(I) Enter into and perform such contracts, leases, cooperative agreements or other 
5 
transactions as may be necessary in the conduct of the work of the Trade Office and on such 
6 
terms as the Philippine Trade Representative may deem appropriate with any agency or 
7 
instrumentality of the Philippine government or with any public or private person, firm, 
8 
association, corporation or institution; and 
9 
10 
(m) Adopt an official seal which shall be judicially noticed. 
11 
12 
SEC. 7. Functions of the Philippine Trade Representath'e. - The Philippine Trade 
13 
Representative may, for the purpose of carrying out the functions of the Trade Office: 
14 
15 
(a) Create the organizational structure of the Trade Office consistent with its mandate and 
16 
functions provided in this Act and according to strategic needs, and review the structure 
17 
regularly; 
18 
19 
(b) Head the Trade Office and exercise control and supervision over all its functions, 
20 
activities and its organization; 
21 
22 
(c) Serve as the chief trade negotiator of the Philippines in international trade and 
23 
investment agreements including, but not limited to, the World Trade Organization (WTO), 
24 
regional, bilateral and ~tlli!fA'fil~l negotiations, in which the Philippines participates, and shall be 
25 
responsible for the conduct of such; 
26 
27 
(d) Create sectoral and thematic desks that will receIve and facilitate referral to 
28 
appropriate agencies of complaints, information and concerns pertaining to trade and investment 
29 
matters; 
8 


I 
2 
(e) Chair the Inter-Agency Coordinating Committee on international trade and 
3 
investments; 
4 
5 
(t) Monitor and enforce the implementation of Philippine international trade policy, 
6 
including direct investment matters to the extent that these are related to international trade 
7 
policy; 
8 
9 
(g) Coordinate with national agencies in the performance of functions, including the right 
10 
to issue compulsory processes pursuant to Section 15 of this Act; 
11 
12 
(h) Call upon and deputize, in times of trade policy formulation and negotiations, the 
13 
national agencies and their personnel and correspondingly use the services of the deputized 
14 
agency, whose functions are related to or affect international trade policy, including direct 
15 
investment matters to the extent that these are related to international trade policy; 
16 
17 
(i) Co-chair the Multi-Sectoral Advisory Committee in its regular and special meetings; 
18 
and 
19 
20 
G) Perform such other functions inherent to the functions of the Philippine Trade 
21 
Representative and as the President may direct pursuant to this Act. 
22 
23 
SEC. 8. Ex Officio Positions and Functions of the Philippine Trade Representative. -
24 
The Philippine Trade Representative shall be entitled to the following ex officio positions and 
25 
functions: 
26 
27 
(a) Senior representative on any body that the President may establish for the purpose of 
28 
advising the President on overall economic policies in which international trade matters 
29 
predominate; and 
9 


,< 
I 
2 
(b) Participant in all economic summits and other international meetings III which 
3 
international trade is a major topic, 
4 
5 
SEC. 9. Functions and Duties of the Deputy Trade Representatives. - The Deputy 
6 
Trade Representatives shall have, as principal function, the conduct of trade negotiations under 
7 
this Act and shall have such other functions as the Philippine Trade Representative may direct, to 
8 
wit: 
9 
10 
11 
(a) Lead the negotiations for their respective sectors andlor areas of concern; 
12 
(b) Convene and chair the Sub-Sectoral Advisory Committee and the Inter-Agency 
13 
Coordinating Subcommittee for their respective sectors andlor areas of concern; 
14 
15 
(c) Ensure proper coordination among the various government agencies involved in their 
16 
specific sectors of concern and hannonize conflicting negotiating positions; 
17 
18 
(d) Prepare sector-specific proposals and negotiating positions and strategies; and 
19 
20 
(e) Perform all other functions as may be delegated by the Philippine Trade 
21 
Representative or as may be required by the nature or exigencies of their foregoing functions and 
22 
responsibilities. 
23 
24 
SEC. 10. Inter-Agency Coordinating Committee and Subcommittees. - In connection 
25 
with the performance of the functions, the Philippine Trade Representative shall, to the extent 
26 
necessary for the proper administration and execution of the trade and investment agreements of 
27 
the Philippines, draw upon the expertise of and consult with national agencies. 
28 
10 


I 
The Philippine Trade Representative shaIl consult with concerned agencies and any other 
2 
agency on trade and investment policy issues, without prejudice to the exercise by the Bangko 
3 
Sentral ng Pilipinas (BSP) of its authority as an independent central monetary authority under the 
4 
Constitution and Republic Act No. 7653 or the New Central Bank Act. All agencies consulted by 
5 
the Philippine Trade Representative shaIl participate actively, cooperate fuIly and promptly 
6 
provide to the Philippine Trade Representative all documents and information requested. 
7 
Further, there is hereby created Inter-Agency Subcommittees to provide inputs and support to the 
8 
Deputy Trade Representatives. 
9 
10 
SEC. 11. Membership in the National Economic and Development Authority (NEDA) 
11 
Board. - The Philippine Trade Representative shall be a member of the National Economic and 
12 
Development Authority (NEDA) Board which was created under Executive Order No. 230. The 
13 
Philippine Trade Representative shaH have the same rights and obligations as all the other 
14 
members of the Board. 
15 
16 
SEC. 12. Organization of the Trade Office. - Pursuant to the provisions of this Act and 
17 
to function effectively, the Philippine Trade Representative shaIl be internally supported by a 
18 
Trade Research, Data Collection, Analysis and Dissemination Service and a Legal Service. Both 
19 
Services shaIl comprise the Trade Office. 
20 
21 
SEC. 13. The Trade Research, Data Collection, Analysis and Dissemination Service.-
22 
The Trade Research, Data Collection, Analysis and Dissemination Service under the Trade 
23 
Office shall have the following specific functions and responsibilities: 
24 
25 
(a) Improve and strengthen the capacity of the Trade Office on research, data collection, 
26 
analysis and dissemination of trade and investments statistics, laws and policies, agreements and 
27 
other related information; 
28 
II 


" 
1 
(b) Generate, maintain and update records/files of comprehensive national and 
2 
international trade statistics, tariff and nontariff measures and investment-related data; 
3 
4 
(c) Conduct sectoral and macrolevel impact assessment and/or potential effects of the 
5 
country's trade negotiating positions or an eventual trade agreement and validate such studies; 
6 
7 
(d) Provide the general public access to trade data and information and other relevant 
8 
documents through online databases, journals, publications, etc.; 
9 
10 
(e) Collaborate with government and nongovernment research institutions in research 
11 
concerning trade and investment policies and programs in relation to the national development 
12 
program; 
13 
14 
(f) Tap the foreign trade service corps to get market intelligence information with regard 
15 
to commercial, industrial and general economic conditions, as well as noneconomic conditions, 
16 
affecting Philippine products both in the export and domestic markets; 
17 
18 
(g) Perform other functions as may be provided by l.aw or assigned by the Trade 
19 
Representative or the Deputy Trade Representatives; and 
20 
21 
(h) Conduct or facilitate the conduct of trainings and courses for the benefit of the 
22 
technical staff of the Trade Office and other government personnel directly or indirectly engaged 
23 
in trade and investment policy work in order to build, improve and enhance the capacity and 
24 
competence in trade and investment negotiations. 
25 
26 
SEC. 14. The Legal Service. - The Legal Service shall have the following functions and 
27 
responsibilities: 
28 
12 


.. -
1 
(a) Provide legal advice to the Trade Office, including legal advice on trade and 
2 
investment negotiations; 
3 
4 
(b) Interpret laws and rules affecting the operation of the Trade Office; 
5 
6 
(c) Prepare contracts and instruments to which the Trade Office is a party, and interpret 
7 
provisions of contracts covering work performed for the Trade Office by private entities; 
8 
9 
10 
11 
12 
(d) Assist in the promulgation of rules governing the activities of the Trade Office; 
(e) Prepare comments on proposed legislation concerning the Trade Office; 
13 
(t) Assist the Solicitor General in suits involving the Trade Office or its officers or 
14 
employees, or act as their principal counsel in all actions taken in their official capacity before 
15 
judicial or administrative bodies; 
16 
17 
(g) Assist the Trade Office in ensuring that the rights and interests of the Republic of the 
18 
Philippines are protected in the WTO agreement, other multilateral trade, regional, plurilatera1 
19 
and bilateral trade and investment agreements; and ensure that the counterpart countries comply 
20 
with their obligations in the agreements; 
21 
22 
(h) Represent the Republic of the Philippines in any dispute settlement before the WTO, 
23 
other multilateral trade agreements, bilateral trade agreements or in any other suit involving 
24 
international trade; and 
25 
26 
(i) Perform such other functions as may be directed by the Philippine Trade 
27 
Representative. 
28 
13 


" 
I 
SEC. 15. Issuance of Compulsory Processes. - Pursuant to Section 7 of this Act, the 
2 
Trade Office, in aid of trade policy formulation and negotiations, shall have the power and 
3 
authority to invite or summon by subpoena ad testificandum any public official, private citizen 
4 
or any other person to testify before it, or require any person by subpoena duces tecum to 
5 
produce before it such records, reports, documents or other materials as it may require. There 
6 
shall be a compliance within thirty (30) days to the subpoena issued; otherwise any failure to 
7 
comply is punishable under Section 24 of this Act. 
8 
9 
SEC. 16. Filing of Cases Against Violators. - The Trade Office shall have the authority 
10 
to file cases and other appropriate legal actions to further its mandate under Section 7(f) and (g) 
II 
and collaborate, if necessary, with relevant government agencies and stakeholders in order to 
12 
protect the lights and interests of the Philippines in relation to trade and trade-related 
13 
investments. 
14 
15 
SEC. 17. The Multi-Sectoral Advisory Committee, - There is hereby created a Multi-
16 
Sectoral Advisory Committee, hereinafter referred to as the MSAC. MThe MSAC shall be 
17 
composed of representatives of industries, agriculture, labor, small business, service industries, 
18 
retailers and consumers and shall be broadly representative of key economic sectors and groups 
19 
affected by trade. 
20 
21 
Members of the MSAC and Subcommittees shall be appointed by the Philippine Trade 
22 
Representative upon the endorsement of various nongovernment organizations and stakeholders. 
23 
Members of the MSAC shall serve without either compensation or reimbursement of expenses. 
24 
25 
The MSAC will meet as needed at the call of the MSAC Chairman or the Philippine 
26 
Trade Representative depending on various factors such as the level of activity of trade 
27 
negotiations. 
28 
14 


I 
SEC. 18. Duties and Functions of the MSAC. - The MSAC shall provide information 
2 
and advice to the Philippine Trade Representative on trade and trade-related matters towards the 
3 
achievement of the economic goals defined in the 1987 Constitntion that are aimed at balancing 
4 
the interest of these varions stakeholders with respect to: 
5 
6 
(a) Negotiating objectives and bargaining positions before entering into a trade and 
7 
investment agreement; 
8 
9 
(b) The operation, implementation and monitoring of any trade and investment agreement 
10 
once entered into; 
II 
12 
(c) Trade remedies, dispute settlements, noncompliance and/or violations to any trade and 
13 
investment agreement; and 
14 
15 
(d) Other matters arising in cOl1l1ection with the development, implementation and 
16 
administration of the trade and investment policy. 
17 
In addition, the MSAC shall: 
18 
19 
(1) Provide technical support to the Philippine Trade Representative by drawing upon the 
20 
knowledge and expertise of the members; 
21 
22 
(2) Prior to any trade negotiations, participate in the development of the negotiation 
23 
objectives and bargaining positions of the country and at the conclusion of negotiation for its 
24 
trade agreement entered into, provide a report to the Philippine Trade Representative to form part 
25 
of the latter's report to the President and Congress, pursuant to Section 6(f) hereof. The report of 
26 
the MSAC shall include an assessment and evaluation of whether and to what extent the 
27 
agreement promotes Philippine economic interests and achieves the applicable overall and 
28 
principal negotiating objectives set forth; 
29 
15 


1 
(3) Be allowed to accompany and advise the Philippine delegation III trade and 
2 
investment negotiation missions; and 
3 
4 
(4) Recommend to the Philippine Trade Representative the participation of private sector 
5 
representative to accompany the Philippine delegation in an observer capacity in trade 
6 
negotiations. 
7 
8 
SEC. 19. Meetings, Agenda and Staff Support. - The Philippine Trade Representative 
9 
shall: 
10 
II 
(a) Preside over the MSAC, which will meet as needed at the call of the MSAC Chairman 
12 
or the Philippine Trade Representative depending on various factors such as the level of activity 
13 
of trade negotiations; 
14 
IS 
(b) Call for a regular meeting of the MSAC during the first and third quarter of the year 
16 
and may call for a special meeting as may be necessary depending on various factors such as the 
17 
level of activity of trade negotiations; 
18 
19 
20 
21 
22 
23 
(b) Approve and set the agenda for all MSAC meetings; and 
( c) Provide the Secretariat and other necessary staff support for MSAC meetings. 
24 
SEC. 20. Sub-Sectoral Advisory Committee. - There is hereby created a Sub-Sectoral 
25 
Advisory Committee, hereinafter referred to as the "SSAC", to be defined by the Philippine 
26 
Trade Representative for trade and investment policy formulation and negotiations. 
27 
28 
The SSAC shall be broadly representative of the key sectors and groups of the economy, 
29 
particularly with respect to those sectors and groups which are affected by trade and shall consist 
16 


I 
of representatives of industry, the academe, agriculture, fisheries, labor, small business, service 
2 
industries, retailers, consumer interest and other stakeholder groups. 
3 
4 
Members of the MSAC and the SSAC shall be appointed by the Philippine Trade 
5 
Representative upon the endorsement of various nongovernment organizations and stakeholders. 
6 
Members of the said Committees shall serve without either compensation or reimbursement of 
7 
expenses. The Chairperson of the MSAC and the SSAC shall be elected by its members. 
8 
9 
SEC. 21. Confidentiality Agreement. -
The members of the MSAC and its 
10 
Subcommittees shall: 
11 
12 
13 
(a) Enter into a confidentiality agreement with the Trade Office; and 
14 
(b) Comply with other requirements established by the Trade Office to protect from 
IS 
unauthorized disclosure all classified information and all information relating to trade policy 
16 
formulation and negotiations. 
17 
18 
SEC. 22. Joint Congressional Oversight Committee on Trade and Investment Matters. 
19 
- There shall be a Joint Congressional Oversight Committee on Trade and Investment Matters, 
20 
hereinafter referred to as the "Congressional Oversight Committee", to which the Trade Office 
21 
shall regularly report to ensure concurrence and authority regarding negotiating mandate and 
22 
parameters, and shall comply immediately to any order of the Congressional Oversight 
23 
Committee. The Congressional Oversight Committee shall be composed of five (5) Members 
24 
from the Senate which shall include the Senate President, the Senate Majority and Minority 
25 
Leaders, and five (5) Members from the House of Representatives which shall include the 
26 
Speaker of the House and the Majority and Minority Leaders. 
27 
28 
The Congressional Oversight Committee shall conduct a periodic review and evaluation 
29 
of the performance of the Trade Office, including its officials, every three (3) years. An 
17 


1 
independent panel composed of experts to be appointed by the Congressional Oversight 
2 
Committee shall review the activities and perfonnance of the Trade Office and shall make 
3 
recommendations, based on its findings, to the Congressional Oversight Committee. The 
4 
independent panel of evaluators shall likewise conduct consultations with stakeholders in the 
5 
conduct of the review. 
6 
7 
SEC. 23. Reportorial Requirements. -
The Trade Office shall comply with the 
8 
following: 
9 
(a) Report to the Congressional Oversight Committee and to the MSAC, as herein 
10 
created, any intention to negotiate any economic· treaty, be it bilateral, regional or multilateral. At· 
11 
the minimum, the report shall contain the subject matter for negotiations and the general 
12 
objectives of the government. The Trade Office shall update the Congressional Oversight 
13 
Committee and the MSAC on the negotiations, including the offers and counteroffers of all the 
14 
parties, and shall also notify the Congressional Oversight Committee and the MSAC of any 
15 
tentative or final agreement of the parties; 
16 
17 
(b) Report at least twice a year and as may be directed by the President or the 
18 
Congressional Oversight Committee and as may be requested by the MSAC on the developments 
19 
of any international trade and investment negotiation and/or agreement; and 
20 
21 
(c) Submit a biannual report directly to the President, the Congressional Oversight 
22 
Committee and the MSAC regarding the implementation, operation and effectiveness of any 
23 
trade and investment agreement entered into, including the status of ongoing trade and 
24 
investment negotiations in which the Philippines participates. 
25 
26 
SEC. 24. Administrative Fines and Penalties. -
27 
28 
(a) Noncompliance on the Issuance of Compulsory Processes. - Any person or entity who 
29 
fails to comply to the subpoena issued by the Trade Office within the thirty (30}-day de<tdline 
18 


<, 
shall suffer the penalty of imprisonment for a period of not less than six (6) months but not more 
2 
than one (I) year or shall be imposed a fine of not less than One hundred thousand pesos 
3 
(PHPI00,000.00) but not more than Five hundred thousand pesos (PHP500,000.OO), at the 
4 
discretion ofthe court. 
5 
6 
(b) Violation of Confidentiality of Agreement. - Any person or entity who shall violate 
7 
the confidentiality of agreement under this Act shall suffer the penalty of imprisonment for a 
8 
period of not less than six (6) months but not more than one (1) year or shall be imposed a fine of 
9 
not less than Two hundred fifty thousand pesos (PHP250,OOO.OO) but not more than Five 
10 
hundred thousand pesos (PHP500,OOO.OO), at the discretion of the court. The Trade Office shall 
II 
have the power to remove any member who violates this provision from membership in the 
12 
MSAC. 
13 
14 
(c) Other Violations. - After due notice and hearing, the Philippine Trade Representative 
15 
shall have the power to impose administrative fines against any person, organization or any other 
16 
entity in such amount as it may be reasonable which in no case shall be less than Fifty thousand 
17 
pesos (PHP50,OOO.00) but not more than Five million pesos (PHP5,OOO,000.00) for any violation 
18 
of any provision under this Act. 
19 
20 
SEC. 25. Transfer of Functions. - The functions of the Bureau of International Trade 
21 
Relations under the Department of Trade and Industry (DTI), Attaches and Permanent Mission to 
22 
the WTO, the Association of Southeast Asian Nations (ASEAN) and United Nations 
23 
International Organization (UNIO), and the trade negotiating and policy-making functions of the 
24 
Tariff and Related Matters Committee (TRMC) are hereby transferred to the Trade Office. 
25 
26 
The foregoing transfer of powers and functions shall include all applicable funds and 
27 
appropriations, records, equipment, property and personnel as may be necessary. 
28 
19 


I 
SEC. 26. Transitory Provision. - The TRMC created under Section 6 of Executive Order 
2 
No. 230, Series of 1987, together with the Technical Committee on WTO Matters, shall continue 
3 
to function for six (6) months or until the Trade Office is set up, whichever comes earlier, after 
4 
which they shall cease to function. 
5 
6 
SEC. 27. Implementing Rules and Regulations. -
The Trade Office shall, in 
7 
consultation with the DTI, the Department of Agriculture, the-Department of Foreign Affairs and-
8 
the NEDA, issue the rules and regulation necessary to implement the provisions ofthis Act sixty 
9 
(60) days from the date of appointment of the Philippine Trade Representative. 
10 
II 
SEC. 28. Appropriations. - The amount necessary to implement the provisions of this 
12 
Act shall be charged against the current year's appropriations of the Bureau of International 
13 
Trade Relations under the DTI, Attaches and Permanent Mission to the WTO, the ASEAN, the 
14 
UNIO, the TRMC and other concerned agencies. Thereafter, such sums as may be necessary for 
15 
its continued implementation shall be included in the annual General Appropriations Act. 
16 
17 
SEC. 29. Separability Clause. - If any section or provision of this Act shall be declared 
18 
unconstitutional or invalid, the other sections or provisions not affected thereby shall continue to 
19 
be in full force and effect. 
20 
21 
SEC. 30. Repealing Clause. - All laws, rules and regulations and other issuances 
22 
inconsistent with the provisions of this Act, including Section 6 of Executive Order No. 230, 
23 
Series of 1987 and relevant provisions of Executive Order No. 133, Series of 1987 are deemed 
24 
modified, revoked or repealed accordingly. 
25 
26 
SEC. 31. Effectivity Clause. - This Act shall take effect fifteen (15) days following its 
27 
complete publication in two (2) newspapers of general circulation or in the Official Gazette. 
Approved, 
20