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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.NO. 1084 
Introduced by Senator TEOFISTO "TG" GUINGONA III 
EXPLANATORY NOTE 
... Hv:_F-
International trade is a national concern. The subject, issues, and commitments 
covered by the ever-increasing number of international trade, commodity, and investment 
agreements are intricately intertwined with paramount national concerns which include, 
among others, job availability and security, food sovereignty, rural and industrial 
development, financial stability, and public revenue collection and management. 
It is within this context that this measure be considered with a deliberate and 
committed sense of urgency. 
This bill seeks to establish a singular entity called the Philippine Trade Representative 
Office (PTRO) to be responsible and accountable for positions developed and commitments 
made in international trade agreementsltreaties. The establishment of the Philippine Trade 
Representative Office seeks to improve and strengthen the negotiating capabilities of the 
Philippines in order to ensure that international trade, commodity, and/or investment 
agreements shall only be entered into only when these are beneficial to the Filipino people. 
In establishing the PTRO, the following objectives are sought: 
• 
Enhanced negotiation capacity for Philippine negotiators 
• 
Increased transparency and relevant participation for stakeholders 
• 
Accountability for officials involved in the process of trade, investment, and 
commodity agreement negotiations 
• 
Coherence and cohesiveness in the Philippine trade, commodity, and 
investment strategy in relation to agreements with international players 
• 
Participation of Congress in the processes relevant to international trade 
because of the clear recognition that while trade, investment, and commodity 
agreements involve foreign partners, the formulation of policies in relation to 


national economy, commerce, and development, whether these be purely 
domestic in application or international, is a shared duty of all different 
branches of the Philippine government. In other nations, the legislative branch 
plays an active role in treaty negotiation, In the United States, members of 
Congress can join the negotiation teams and actually be present during the 
negotiation process, They can propose provision to be included, modified, and 
even removed from the US commitments in the treaty, In the European Union, 
the European Parliament does not only give its assent to proposed free trade 
agreements, it is also required that they be given a copy of the negotiation 
proposals [i.e, negotiation mandate] and that they are regularly consulted 
during the course of the negotiations to ensure that the outcome commands 
broad support, 
For these reasons, let us enact this measure with dispatch, 
Senator 


Sl'rmtr 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF PHILIPPINES 
First Regular Session 
) 
) 
) 
{~th;t of tlti'- ,;*"nrt:Hl,J. 
'13 
JUL 23 P 4 :48 
SENATE 
S.B.NO. 1084 
Introduced by Senator TEQFISTO "TG" GulNGONA ITI 
AN ACT ESTABLISHING A FRAMEWORK FOR RESPONSIBLE AND 
ACCOUNTABLE TRADE NEGOTIATIONS BY CREATING THE PHILIPPINE 
TRADE REPRESENTATIVE OFFICE, APPROPRIATING FUNDS THEREFOR. 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. 
TITLE. 
This Act shall be known as the "Charter of the Philippine Trade 
2 
Representative Office". 
3 
4 
SECTION 2. 
DECLARATION OF POLICY. The State shall pursue a trade policy that 
5 
serves the general welfare, creates jobs, ensures food sovereignty, and supports rural and 
6 
industrial development. This envisioned trade policy must utiliZe all forms and arrangements 
7 
of exchange on the basis of fair trade, equality, and reciprocity. In trade and investment 
8 
negotiations, the State shall pursue greater market access in harmony with its duty to protect 
9 
Filipino citizens and enterprises against unfair foreign and trade practices. 
10 
11 
It is also the declared policy of the State to ensure the right of the people and/or their 
12 
organizations to be duly informed on matters of public concern and the right to effectively 
13 
and reasonably participate at all levels of social, political, and economic decision-making. 
14 
15 
Congress has the power to regulate commerce, including commerce with foreign nations, and 
16 
has the power to reorganize the bureaucracy in order to make it more responsive to the needs 
17 
of all the stakeholders in the Philippine economy and the exigencies of international 
18 
economic relations. Any international commodity, investment, economic, commercial and/or 
19 
trade agreement entered into by the government constitutes regulation of commerce and will 
20 
affect the different stakeholders in our economy. Hence, it is essential that any agreement is 
21 
harmonized with our existing domestic commercial laws and our Constitution. 
22 
23 
Moreover, Congress, as one of the three (3) political branches of the government, has power 
24 
over foreign relations, especially international economic relations. 
25 
26 
For this purpose, and pursuant to the power of Congress to regulate commerce, the State shall 
27 
ensure that a single office shall, with competence and accountability, lead, direct, formulate 
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and. ~oordinate government agencies towards formulating coherent and cohesive policies, 
posItions and measures, and conduct regular stakeholders' consultations with respect to 
international trade and investment relations and negotiations. 
SECTION 3. DEFINITION OF TERMS. 
(a) "Ambassador" refers to a diplomatic official accredited to a foreign sovereign or 
government, or to an international organization, to serve as the official representative 
of his or her own country. In everyday usage, it applies to the ranking plenipotentiary 
minister stationed in a foreign 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 society" refers to the totality of voluntary civic and social organizations and 
institutions that form the basis of a functioning society as opposed to the formal 
institutions and structures of a State. 
(c) "Civil society organizations" shall include non-government organizations (NGOs), 
cause-oriented 
groups, 
people's 
organizations, 
cooperatives, 
trade 
unions, 
professional associations, faith-based organizations, media groups, indigenous 
peoples movements, foundations, and other citizen groups formed primarily for social 
and economic development, which monitor government projects, engage in policy 
discussions, and actively participate in collaborative activities with Government. 
26 
(d) "Commerce" refers to the entire range of activities connected with the production, 
27 
manufacturing, accumulation, gathering, mining, raising, harvesting, exchange or 
28 
buying and selling of something of economic value such as agricultural products, 
29 
minerals, goods, services, information, debt instruments, shares of stock or equity, 
30 
derivatives and money. It also includes capital formation, either through debt or 
31 
equity, savings, and investments. Finally, it likewise includes the obligations, rights 
32 
and duties of all economic entities such as natural persons, corporations, partnerships 
33 
and governmental entities. 
34 
35 
(e) "Consultation mechanism" refers to the means by which stakeholders and sectors 
36 
could participate effectively and meaningfully in the governmental process of drawing 
37 
up our international trade policy, and in coming up with all other policies and rules 
38 
affecting all aspects of international trade. 
39 
40 
(f) "Fair trade" refers to a trading partnership based on dialogue, transparency and 
41 
respect, that seeks greater equity in international trade. It contributes to sustainable 
42 
development by offering better trading conditions to, and securing the marginalized 
43 
producers and workers. 
44 
45 
(g) "Investment" refers to the act of putting money to a business, either by directly 
46 
buying or leasing assets, hiring personnel, and entering into a whole gamut of 
47 
contracts needed to run an ongoing concern, or by buying equity in a business -
48 
typically in the form of shares of stock. 
49 
2 


1 
(h) "Legal" refers to the characterization of an act that is not contrary to Philippine laws, 
2 
including international commercial agreements to which the Philippines is a party, 
3 
and the accession ofthe parties to a trade and/or investment agreement. 
4 
5 
(i) "Multi-sectoral" refers to a grouping of different sectors of the economy. 
6 
7 
U) "Private sector" refers to that sector of the economy that is owned by or is composed 
8 
of private individuals, including natural persons doing business in their personal 
9 
capacities. 
10 
11 
(k) "Research" refers to the study of the potential or actual economic implications of a 
12' 
proposed or existing trade agreement and the validation of its findings among the 
13 
stakeholders. 
14 
15 
(I) "Sectors" refers to the different economic or commercial groups composed of 
16 
members with substantially common legitimate commercial interest, including but not 
17 
limited to business, labor, peasants, farmers, fisherfolk, consumers, private sector, 
18 
public sector, service sector and manufacturing sector. 
19 
20 
(m)"Stakeholders" refers to persons or groups of persons with legitimate interest in 
21 
commerce or whose economic well-being will be affected by any government policy 
22 
or law affecting commerce - either as factors in the production, sale, or distribution of 
23 
goods and services, or as consumers or beneficiaries thereof 
24 
25 
(n) "Trade" refers to the voluntary exchange of goods, services and all things of 
26 
economic value, whether or not across national borders. 
27 
28 
(0) "Trade and investment agreement or international trade and investment 
29 
agreement" refers to an accord whereby two (2) or more countries bind themselves to 
30 
a set of rules that govern the commercial and investment transactions of persons 
31 
originating from any of the parties to the agreement. When it is just between two (2) 
32 
countries, it is called a Bilateral Agreement. On the other hand, if it involves more 
33 
than two (2) countries, then it is called a Multilateral Agreement, 
Regional 
34 
Agreements are those among countries within the same geographical area as 
35 
contemplated by the agreement. Plurilateral Agreements are specialized agreements 
36 
included in a multilateral agreement, and where the parties have the option of 
37 
acceding. 
38 
39 
(p) "Trade dispute" refers to a disagreement between two (2) or more countries to a 
40 
trade agreement that arises when at least one country adopts a trade policy measure or 
41 
takes some action that one or more fellow members consider to be a breach of the 
42 
agreement, or a failure to live up to obligations under the agreement. 
43 
44 
SECTION 4. 
CREATION. 
There is hereby created the Philippine Trade Representative 
45 
Office, hereinafter referred to as the "Trade Office~' that shall be attached to the Office of the 
46 
President. 
47 
48 
The Trade Office shall be headed by the Philippine Trade Representative who shall be 
49 
appointed by the President and confirmed by the Commission on Appointments. Slhe shall 
3 


1 
hold a fixed term of six (6) years, shall be entitled to receive the same allowances as a Chief-
2 
of-Mission, and shall have the rank of Cabinet Secretary. 
3 
4 
Further, the Trade Office shall have three (3) Deputy Philippine Trade Representatives who 
5 
shall be appointed by the President upon the endorsement of various stakeholders and shall 
6 
have the rank of senior undersecretary. 
7 
8 
The deputies shall have a term of six (6) years each and can be re-appointed for no more than 
9 
a second term. Of those first appointed under this Act, one deputy shall serve for six (6) 
10 
years, another deputy for four (4) years and another deputy for two (2) years. 
11 
12 
SECTION 5. QUALIFICATIONS AND LIMITATION ON APPOINTMENTS. 
13 
14 
(a) Qualifications. -
The Philippine Trade Representative and Deputy Trade 
15 
Representatives must be natural-born citizens of the Philippines, and must be at least 
16 
forty (40) and thirty-five (35) years of age, respectively, of good moral character, 
17 
unquestionable integrity, and known probity and patriotism, and should possess the 
18 
academic training, experience, and competence in business, economics, international 
19 
trade law and policy or trade negotiations. 
20 
21 
The Philippine Trade Representative and Deputy Trade Representatives shall not, 
22 
during their tenure in office, engage in the practice of any profession, or intervene 
23 
directly or indirectly in the management or control of any private enterprise which 
24 
may, in any way, be affected by the functions of their office, nor shall they be 
25 
financially interested, whether directly or indirectly, in any contract with the 
26 
government, or in any franchise, or special privilege granted by the government or 
27 
any subdivision, agency or instrumentality thereof, including government-owned or -
28 
controlled corporations or their subsidiaries. They shall strictly avoid conflicts of 
29 
interest in the conduct of their office. 
30 
31 
(b) Limitations on Appointments; Disqualifications. No person shall be appointed 
32 
Philippine Trade Representative or Deputy Trade Representative if helshe has directly 
33 
represented, aided, or advised a foreign entity in any trade and/or investment 
34 
negotiation or trade dispute against the Philippines. 
35 
36 
Likewise, the Philippine Trade Representative, Deputy Trade Representatives, and all 
37 
members of the research and legal staff of the Office of the Philippine Trade 
38 
Representative shall not be allowed to be employed, commissioned, or retained by 
39 
foreign entities, or to do any kind of consultancy or related work for foreign clients on 
40 
trade and investment issues within two (2) years after the expiration or termination of 
41 
their service with the Office of the Philippine Trade Representative. They shall 
42 
likewise maintain at all times the confidentiality of all matters that they have handled 
43 
during their service with the Office of the Philippine Trade Representative. 
44 
45 
SECTION 6. PRESIDENT'S ANNUAL TRADE POLICY PLAN. The President, through 
46 
and with the Trade Office, shall submit an Annual Trade Policy Plan to the Joint 
47 
Congressional Oversight Committee on Trade and Investment Matters, on or before the 31st 
48 
of January every year. The Annual Trade Policy Plan shall include, among others, the 
49 
following: 
50 
4 


1 
(a) A summary of the President's trade agenda for the year, including the policy priorities 
2 
in relation to international trade, commodity, and or investment matters; 
3 
4 
(b) An outline of developments and plans in relation to engagements with the World 
5 
Trade Organization, including but not limited to, developments in the negotiations in 
6 
agriculture, services, non-agricultural market access (NAMA), trade facilitation, trade 
7 
in goods, intellectual property, and other related and relevant issues; 
8 
9 
(c) Updates and plans for proposed, on-going, and concluded negotiations of bilateral 
10 
and/or regional agreements; including an identification of possible, proposed, and 
11 
existing trade partners with respect to the bilateral andlor regional agreements; 
12 
13 
(d) Updates and plans for other multilateral activities and trade enforcement efforts; 
14 
15 
( e) Other relevant matters related to international trade, commodity, and investment 
16 
agreements. 
17 
18 
SECTION 7. FUNCTIONS AND RESPONSIBILITIES OF THE PHILIPPINE TRADE 
19 
REPRESENTATIVE OFFICE. 
The Trade Office, through the President's Annual Trade 
20 
Policy Plan, is responsible for developing, coordinating, and harmonizing Philippine trade 
21 
commodity, and investment policies, and leading negotiations, with other countries on these 
22 
same matters. Pursuant to this task, it shall: 
23 
24 
(a) Conduct research and legal studies related to trade and investments that will enhance 
25 
trade policy formulation; 
26 
27 
(b) Obtain, collate and maintain a database that shall include, but not be limited to, trade 
28 
and investment statistics, trade and investment-related laws, policies, trade and 
29 
investment agreements, and initiatives which have implications on the development of 
30 
the Philippine negotiating position in trade and investment agreements, and which 
31 
shall be accessible to the stakeholders; 
32 
33 
(c) Undertake consultations with stakeholders in all aspects of trade policy formulation 
34 
and negotiation, and execution. Stakeholders must also be directly involved in 
35 
formulating positions related to trade and investment negotiations in line with the 
36 
national development agenda; 
37 
38 
(d) Through regular and meaningful donsultation with relevant government agencies, and 
39 
various stakeholders, formulate the Philippine trade position aimed to support the 
40 
achievement of the economic goals defined in the Constitution; 
41 
42 
(e) Negotiate trade and investment agreements on the basis of the Philippine Constitution 
43 
and other laws, and represent the Philippines in all international trade negotiations, 
44 
including, but not limited to, any matter considered under the auspices of the World 
45 
Trade Organization, and other regional and bilateral commodity and direct investment 
46 
negotiations: in which the Philippines participates; 
47 
48 
(f) Advise the President and Congress on international trade and investment policies and 
49 
their implications on the domestic economy and the impact of domestic policies on 
50 
international trade and investment commitments; 
5 


1 
(g) Assert and protect the -rights and interests of the Philippines under all bilateral, 
2 
regional and multilateral trade and investment agreements by coordinating quick and 
3 
decisive inter-agency response including but not limited to cases of unfair trade 
4 
practices, import surges and rules on investment; 
5 
6 
(h) Provide the necessary staff support for the Multi-sectoral and Sub-sectoral Advisory 
7 
Committee and the Inter-agency Coordinating Committee; and 
8 
9 
(i) Subject to Civil Service Commission rules, elect, appoint, employ and fix the 
10 
compensation in accordance with the existing compensation laws of such officers and 
11 
employees as are necessary and prescribe their authority and duties; 
12 
13 
G) Employ and compensate, in accordance with the relevant laws, experts and 
14 
consultants; 
15 
16 
(k) Promulgate such rules and regulations as may be necessary to carry out the functions, 
17 
powers and duties vested herein; 
18 
19 
(I) Enter into and perform such contracts, leases, cooperative agreements, or other 
20 
transactions as may be necessary in the conduct of the work of the office and on such 
21 
terms as the Philippine Trade Representative may deem appropriate with any agency 
22 
or instrumentality of the Philippine government or with any public or private person, 
23 
firm, association, corporation or institution; 
24 
25 
(m)Adopt an official seal, which shall be judicially noticed; 
26 
27 
SECTION 8. FUNCTIONS OF THE PHILIPPINE TRADE REPRESENTATIVE. The 
28 
Philippine Trade Representative may, for the purpose of carrying out his functions in this 
29 
Act: 
30 
31 
(a) Create the organizational structute of Trade Office consistent with its mandate and 
32 
functions provided in this Act, and according to strategic needs, and review the same 
33 
regularly; 
34 
35 
(b) Head the Philippine Trade Representative Office and exercise control and supervision 
36 
over all its functions and activities and including its organization; 
37 
38 
( c) Serve as the chief trade negotiator of the Philippines in international trade and 
39 
investment agreements including, but not limited to, the WTO, regional, bilateral and 
40 
plurihiteral negotiations, in which the Philippines participates, and shall be 
41 
responsible for the conduct of such; 
42 
43 
(d) Create sectoral and thematic desks that will receive and facilitate referral to 
44 
appropriate agencies, as may be required in this Act, complaints, information and 
45 
concerns pertaining to trade and investment matters; 
46 
47 -
(e) Chair the Inter-agency Coordinating Committee on international trade and 
48 
investments; 
49 
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1 
(f) !'1onit?r a~d en~orce the implementation of Philippine international trade policy, 
2 
mcludmg direct mvestment matters to the extent that they are related to international 
3 
trade policy; 
4 
5 
(g) Coordinate with national agencies in connection with the performance of his 
6 
functions, subject to Section 15 of this Act; 
7 
8 
(h) Call upon and deputize, in times of trade policy formulation and negotiation, the 
9 
national agencies and its personnel, and correspondingly use the services of the 
10 
deputized agency, whose functions are related to or affect international trade policy, 
11 
including direct investment matters to the extent that they are related to international 
12 
trade policy; 
13 
14 
(i) Co-chair the Multi-sectoral Advisory Committee in their regular and special meetings; 
15 
and 
16 
17 
0) Perform such other functions inherent to his functions, and as the President may direct 
18 
pursuant to this Act. 
19 
20 
SECTION 9. EX-OFFICIO POSITIONS AND FUNCTIONS OF THE PHILIPPINE 
21 
TRADE REPRESENTATIVE. The Philippine Trade Representative shall be entitled to the 
22 
following ex officio positions and functions: 
23 
24 
(a) Senior representative on any office/committee/task force/similar bodies that the 
25 
President may establish for the purpose of advising the President on overall economic 
26 
policies in which international trade matters predominate; and 
27 
28 
(b) Participant in all economic summits and other international meetings at which 
29 
international trade is a major topic. 
30 
31 
SECTION 
10. 
FUNCTIONS 
AND 
DUTIES 
OF 
THE 
DEPUTY 
TRADE 
32 
REPRESENTATIVE. Each Deputy Philippine Trade Representative shall have as his 
33 
principal function the conduct of trade negotiations under this Act and shall have such other 
34 
functions as the Philippine Trade Representative may direct. 
35 
36 
(a) Lead the negotiations for their respective sectors and/or areaS of concern; 
37 
38 
(b) Convene and chair the Sub-sectoral Advisory Committees and the Inter-agency 
39 
Coordinating Subcommittee for their respective sectors andlor areas of concern; 
40 
41 
( c) Ensure proper coordination among the various government agencies involved in their 
42 
specific sectors of concern, and harmonize conflicting negotiating positions; 
43 
44 
(d) Prepare sector-specific proposals and negotiating positions and strategies; and 
45 
46 
(e) Perform all other functions as may be delegated by the Philippine Trade 
47 
Representative, or as may be required by the nature or exigencies of their foregoing 
48 
functions and responsibilities. 
49 
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1 
SECTION 
11. 
INTER-AGENCY 
COORDINATING 
COMMITTEES 
AN]) 
2 
SUBCOMMITTEES. 
In connection with the performance of his/her functions, the 
3 
Philippine Trade Representative shall, to the extent necessary for the proper administration 
4 
and execution of the trade and investment agreements of the Philippines, draw upon the 
5 
expertise of, and consult with national agencies. 
6 
7 
The Philippine Trade Representative shall consult with concerned agencies and any other 
8 
agency on trade and investment policy issues, without prejudice to the exercise by the 
9 
Bangko Sentral ng Pilipinas of its authority as an independent central monetary authority 
10 
under the Constitution and Republic Act No. 7653 or the New Central Bank Act. 
All 
11 
agencies consulted by the Philippine Trade Representative shall participate actively, 
12 
cooperate fully, and promptly provide to the Philippine Trade Representative all documents 
13 
and information requested. 
14 
15 
Further, there is hereby created Inter -agency Subcommittees to provide inputs and support to 
16 
the Deputy Trade Representatives. 
17 
18 
SECTION 12. MEMBERSHIP IN THE NEDA BOARD. 
The Philippine Trade 
19 
Representative shall be an additional member of the NEDA Board, which is created under 
20 
Executive Order No. 230. The Philippine Trade Representative shall have the same rights and 
21 
obligations as all the other members. 
22 
23 
SECTION 13. ORGANIZATION OF THE PHILIPPINE TRADE REPRESENTATIVE 
24 
OFFICE. Pursuant to the provisions of this Act and to function effectively, the Philippine 
25 
Trade Representative Office shall be internally supported by a Trade Research Service, Data 
26 
Collection, Analysis and Dissemination Office and a Legal Services and Programme Office. 
27 
28 
SECTION 14.' TRADE RESEARCH SERVICE, DATA COLLECTION, ANALYSIS 
29 
AND DISSEMINATION. The office shall improve and strengthen its capacity on research, 
30 
data collection, analysis, and dissemination of trade and investment statistics, laws and 
31 
policies, agreements and other related information. 
32 
33 
The trade and investment research office under the Office of the Philippine Trade 
34 
Representative shall have the following specific functions and responsibilities: 
35 
36 
(a) Generate, maintain, and update records/files of comprehensive national and 
37 
international trade statistics, tariff and non-tariff measures, and investment-related 
38 
data; 
39 
40 
(b) Conduct sectoral and macrolevel impact assessment and/or potential effects of the 
41 
country's trade negotiating positions or an eventual trade agreement and validate such 
42 
studies; 
43 
44 
( c) Provide the general public access to trade data and information and other relevant 
4S 
documents through online databases, journals, publications, etc.; 
46 
47 
(d) Collaborate with government and nongovernment research institutions in research 
48 
concerning trade and investment policies and programs in relation to the national 
49 
development program; 
50 
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(e) Tap the foreign trade service corps to get market intelligence information with regard 
2 
to commercial, industrial and general economic conditions, as well as non-economic 
3 
conditions affecting Philippine products both in the export and domestic markets; and 
4 
5 
(f) Perform other .functions as may be provided by law or assigned by the Trade 
6 
Representative or Deputy Trade Representative; 
7 
8 
(g) Conduct or facilitate the conduct of trainings and courses for the benefit of the 
9 
technical staff of the office and other government personnel directly or indirectly 
10 
engaged in trade and investment policy work in order to build, improve and enhance 
11 
their capacity and competence in trade and investment negotiations; 
12 
13 
SECTION 15. LEGAL SERVICES AND PROGRAMME. The Office shall have a Legal 
14 
Services arm with the following functions and responsibilities: 
15 
16 
(a) Provide legal advice to the Office of the Philippine Trade Representative, including 
17 
legal advice on trade and investment negotiations; 
18 
19 
(b) Interpret laws and rules affecting the operation of the office; 
20 
21 
( c) Prepare contracts and instruments to which the office is a party, and interpret 
22 
provisions of contracts covering work performed for the bffice by private entities; 
23 
24 
(d) Assist in the promulgation of rules governing the activities of the office; 
25 
26 
(e) Prepare comments on proposed legislation concerning the office; 
27 
28 
(f) Assist the Solicitor General in suits involving the office or its officers or employees, 
29 
or act' as their princlpar counsel in ail actions taken in their official capacity before 
30 
judicial or administrative bodies; 
31 
32 
(g) Assist the office in ensuring that the rights and interests of the Republic of the 
33 
Philippines are protected in the WTO agreements, other multilateral trade, regional, 
34 
plurilateral and bilateral trade and investment agreements, and ensure that counterpart 
3S 
countries comply with their obligations in the agreements; 
36 
37 
(h) Represent the Republic of the Philippines in any dispute settlement before the WTO, 
38 
other multilateral trade agreements, bilateral trade agreements, or in any other suit 
39 
involving international trade; and 
40 
41 
(i) Perform such other functions as may be directed by the Philippine Trade 
42 
Representative Office. 
43 
44 
SECTION 16. ISSUANCE OF COMPULSORY PROCESSES. Pursuant to Section 7 of 
45 
this Act, the Philippine Trade Representative Office, in aid of trade policy furmulation and 
46 
negotiation, shaH have the power and authority to invite or summon by subpoena ad 
47 
testificandum any public official, private citizen or any other person to testify before it, or 
48 
require any person by subpoena duces tecum to produce before it such records, reports, 
49 
documents or other materials as it may require. There shall be a compliance within 30 {lays to 
9 


1 
the subpoena issued otherwise any failure to comply is punishable under Section 24 of this 
2 
Act. 
3 
4 
SECTION 17. 
FILE CASES AGAINST VIOLATORS. 
The PTRO shall have the 
5 
authority to file cases and other appropriate legal actions to further its mandate under Section 
6 
7 (f) and (g), and collaborate, if necessary, with relevant government agencies and 
7 
stakeholders in order to protect the rights and interests of the Philippines in relation to trade 
8 
and trade-related investments. 
9 
10 
SECTION 18. MULTI-SECTORAL ADVISORY COMMITTEE, Membership. A Multi-
11 
Sectoral Advisory Committee (MSAC), presided over by the Trade Representative, shall be 
12 
established and it shall be' composed of representatives from civil society and the private 
13 
sector working on international trade, commodity, and/or investment policies. The 
14 
Committee shall consist of representatives of, among others but not limited to, industry, 
15 
agriculture, labor, small business, service industries, retailers, and consumers. Subcommittees 
16 
may be also organized to provide information and advice on specific matters. 
17 
18 
Members of the Committee and Subcommittees shall be appointed by the Philippine Trade 
19 
Representative, provided that they are representatives of civil society organizations and 
20 
private sector groups that are duly accredited in accordance with rules and regulations to be 
21 
established by the Trade Office. Members of the committee shall serve without either 
22 
compensation or reimbursement of expenses, 
23 
24 
SECTION 19. MSAC, Duties and Functions. The Philippine Trade Representative shall 
25 
seek information and advice from the MSAC on matters related to: 
26 
27 
(a) negotiating objectives and bargaining positions before entering into a trade and 
28 
investment agreement; 
29 
30 
(b) the operation, implementation, and monitoring of any trade and investment agreement 
31 
once entered into; 
32 
33 
(c) trade remedies, dispute settlements, noncompliance and/or violations to any trade and 
34 
investment agreement; and 
35 
36 
(d) other matters arising in connection with the development, implementation, and 
37 
administration of the trade and investment policy. 
38 
39 
Furthermore, it is the duty of the MSAC to: 
40 
41 
(e) Provide the Philippine Trade Representative overall policy advice on trade and trade-
42 
related matters; 
43 
44 
(f) Provide technical support to the Philippine Trade Representative; 
45 
46 
(g) Prior to any trade negotiation, participate in the development of the negotiation 
47 
objectives and bargaining positions of the country and at the conclusion of 
48 
negotiations for each trade agreement entered into, provide a report to the Philippine 
49 
Trade Representative to form part of the latter's report to the President and Congress, 
50 
pursuant to Section 5(g) hereof The report of the Committee shall include an 
10 


1 
assessment and evaluation of whether and to what extent the agreement promotes 
2 
Philippine economic interest and achieves the applicable overall and principal 
3 
negotiating objective set forth; and 
4 
5 
(h) As observers, be allowed to accompany and advise the Philippine delegation in trade 
6 
and investment negotiation missions. 
7 
8 
SECTION 20. 
THE PHILIPPINE TRADE REPRESENTATIVE OFFICE IN 
9 
RELATION TO THE MULTI-SECTORAL ADVISORY COMMITTEE. 
The Philippine 
10 
Trade Representative shall also perform the following functions on the Multi-sectoral 
11 
Advisory Committee: 
12 
13 
(a) Have the responsibility to approve and set the agenda for all Multi-sectoral Advisory 
14 
Committee meetings; 
15. 
16 
(b) Provide secretariat and other necessary staff support for the Multi-sectoral Advisory 
17 
Committee meetings; and 
18 
19 
(c) Call for a regular meeting ofMSAC during the First and Third Quarter of the year and 
20 
may call for special meeting as may be necessary depending on various factors such 
21 
as the level of activity of trade negotiations. 
22 
23 
SECTION 21. 
CONFIDENTIALITY AGREEMENT. 
Members of the Multi-Sectoral 
24 
Advisory Committee and its Sub-committees shall enter into a confidentiality agreement with 
25 
the Trade Office and shall be prohibited from disclosing information previously classified by 
26 
the Trade Office as confidential. 
27 
28 
SECTION 22. 
JOINT CONGRESSIONAL OVERSIGHT COMMITTEE ON TRADE 
29 
AND INVESTMENT MATTERS. 
There shall be a Joint Congressional Oversight 
30 
Committee on Trade and Investment Matters, hereinafter referred to as the "Congressional 
31 
Oversight Committee." The Oversight Committee shall be composed of five (5) members 
32 
from the Senate, which shall include the Chairpersons of the Committee on Trade and 
33 
Commerce and the Committee on Foreign Relations, and five (5) members from the House of 
34 
Representatives, which shall include the Chairpersons of the Committee on Trade and 
35 
Industry and the Committee on Foreign Affairs. 
36 
37 
The Congressional Oversight Committee, with the assistance of an independent panel of 
38 
appointed experts, shall conduct a period review and evaluation of the performance of the 
39 
Philippine Trade Representative Office, im;;luding its officials, every three (3) years. In 
40 
preparing its recommendatory assessment report for the Congressional Oversight Committee, 
41 
the independent panel of experts should conduct consultations with stakeholders. 
42 
43 
The Members of the Congressional Oversight Committee shall be part of the pool of official 
44 
advisors on international trade, commodity, and investment policy for the PTRO. Subject to 
45 
the rules and procedures of the negotiating panel, they may likewise sit as observers during 
46 
the negotiations oftreaties and other international trade and investment agreements. 
47 
48 
SECTION 23. 
REPORTORIAL REQUIREMENTS. 
The PTRO shall comply with the 
49 
following: 
50 
11 


1 
(a) In relation to intentions to negotiate any international trade, economic, and/or 
2 
investment treaty or agreement, provide the Congressional Oversight Committee and 
3 
to the Multi-Sectoral Advisory Committee a report which shall contain, at a 
4 
minimum, the subject matter for negotiations and the general objectives of the 
5 
government. 
6 
7 
(b) For ongoing negotiations, the PTR shall, on its own and/or upon request, regularly 
8 
update the Congressional Oversight Committee and the Multi-sectoral Advisory 
9 
Committee on the negotiations, including the offers, counter-offers and, tentative or 
10 
final agreements, of all the negotiating parties. 
11 
12 
( c) Report at least twice a year and as may be directed by the President or Congressional 
13 
Oversight Committee and as may be requested by MSAC on the developments of any 
14 
international trade and investment negotiations and/or agreements. 
15 
16 
(d) The Philippine Trade Representative shall submit a bi-annual report directly to the 
17 
President, Congressional Oversight Committee and the Multi-sectoral Advisory 
18 
Committee regarding the implementation, operation, and effectiveness of any trade 
19 
and investment agreement entered into including the status of ongoing trade and 
20 
investment negotiations, in which the Philippine participates. 
21 
22 
SECTION 24. PROVISION ON ADMINISTRATIVE FINES AND PENALTIES. 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
(a) Penalty for Non-compliance on Issuance of Compulsory Processes - Any person or 
entity who fails to comply to the subpoena issued by the PTRO within the 30-day 
deadline shall suffer the penalty of imprisonment for a period of not less than six (6) 
months nor more than one (1) year or shall be imposed a fine of not less than One 
hundred thousand pesos (Php 100,000.00) nor more than Five hundred thousand pesos 
(Php500,000.OO), at the discretion of the court. 
(b) Penalty for Violation of Confidentiality Agreement - Any person or entity who shall 
violate the confidentiality agreement under this Act shall suffer the penalty of 
imprisonment for a period of not less than six (6) months nor more than one (1) year 
or shall be imposed a fine of not less than Two hundred fifty thousand pesos 
(Php250,OOO.OO) nor more than Five hundred thousand pesos (php500,OOO.OO), at the 
discretion of the court. The PTRO shall have the power to remove the membership in 
the MSAC of any member in violation of this provision. 
( c) Power to Impose Administrative Fines and Penalties - After due notice and hearing, 
the Philippine Trade Representative shall have the power to impose administrative 
fines against any person, organizations, or any other entity, in such amount as it may 
deem reasonable, which in no case shall be less than Fifty thousand pesos 
(Php50,OOO.OO) nor more than Five million pesos (php5,OOO,OOO.OO) for violations of 
any provisions under this Act. 
46 
SECTION 25. 
TRANSFER OF FUNCTIONS. 
The functions of the Bureau of 
47 
International Trade Relations under the Department of Trade and Industry, Attaches and 
48 
Permanent Mission to the WTO, Association of Southeast Asian Nations (ASEAN) and 
49 
United Nations International Organization (UNIO), and the trade negotiating and policy-
12 


1 
making functions of the Tariff and Related Matters Committee (TRMC) are hereby 
2 
transferred to the Office of the Philippine Trade Representative. 
3 
4 
The foregoing transfer of powers and functions shall include all applicable funds and 
5 
appropriations, records, equipment, property and personnel as may be necessary. 
6 
7 
SECTION 26. TRANSITORY PROVISION. The Tariff and Related Matters Committee 
8 
(TRMC) created by Section 6 of Executive Order No. 230, series of 1987, together with the 
9 
Technical Committee on WTO Matters shall continue to function for six (6) months or until 
10 
the Office of the Philippine Trade Representative is set up whichever comes earlier, after 
11 
which they shall cease to function. 
12 
13 
SECTION 27. IMPLEMENTING PROVISIONS. 
Within 30 days from the effectivity of 
14 
this Act, the President shall appoint the Philippine Trade Representative, together with his 
15 
Deputies. 
16 
17 
The PTRO shall, in consultation with the Departments of Trade and Industry, Agriculture, 
18 
and Foreign Affairs and the National Economic Development Authority, issue the 
19 
implementing rules and regulations necessary to implement the provisions of this Act, 60 
20 
days from the date of appointment of the Philippine Trade Representative. 
21 
22 
SECTION 28. APPROPRIATIONS. The amount necessary to implement the provisions 
23 
of this Act shall be charged against the current year's appropriations of the Bureau of 
24 
International Trade Relations under the Department of Trade and Industry, Attaches and 
25 
Permanent Mission to the WTO, ASEAN and UNIO, the TRMC and other concerned 
26 
agencies. Thereafter, such sums as may be necessary for its continued implementation shall 
27 
be included In the annual General Appropriations Act. 
28 
29 
SECTION 29. 
SEPARABILITY CLAUSE. 
If any provision of this Act is declared 
30 
unconstitutional, the same shall not affect the validity and effectivity of the other provisions 
31 
hereof 
32 
33 
SECTION 30. 
REPEALING CLAUSE. 
All laws, rules and regulations and other 
34 
issuances inconsistent with the provisions of this Act, including Section 6 of Executive Order 
35 
No. 230, series of 1987 and relevant provisions of Executive Order No. l33, series of 1987 
36 
are deemed modified, revoked or repeflled accordingly. 
37 
38 
SECTION 31. EFFECTIVITY. This Act shall take effect fifteen (15) days following its 
39 
publication in at least two (2) national newspapers of general circulation. 
Approved, 
13