TRADE-RELATED ASSISTANCE FOR DEVELOPMENT PROJECT NOVEMBER 2013

T R A D E
This newsleter is made possible by the generous support of the American
People through the United States Agency for Internatonal Development
(USAID). The contents of this newsleter are the sole responsibility of the
TRADE Project and do not necessarily refect the views of USAID or the
United States Government.
(Left to right) TRADE staff led by Dr. Habito, Gigo Alampay and Dr. Clarete (partly hidden) discuss the project with the
House delegation led by Speaker Belmonte, Rep. Villar, Rep. Collantes, Rep. Cojuangco, Rep. Quimbo, and Rep. Ungab.
TRADE meets with Speaker, House committees chairmen BOC Forms Counterpart
Team to TRADE Project
In a special order issued by Bureau of Customs (BOC)
Commissioner Ruffy Biazon, the BOC TRADE
counterpart team has been created, led by three Deputy
Commissioners, to provide guidance and support to and
work together with TRADEs experts and advisers. The
special order also provides for the formation of a
secretariat and technical working groups to help
implement activities pursued in line with TRADEs
objectives. The order, dated 19 November, came soon
after TRADE gave an orientation session to BOCs newly
appointed Deputy Commissioners Primo Aguas, Edita
Tan and Agaton Uvero, and representatives of Deputy
Commissioners Jessie Dellosa and Myrna Chua. The
orientation session was also attended by USAID
representatives Kevin Sharp, Ryan Evangelista and Ria
Orca.
TRADEs objectives include supporting customs
modernization, trade facilitation and the effective
implementation of the National Single Window (NSW).
The project is designed to provide assistance to the
Bureau in the adoption of key and internationally
accepted trade facilitation measures, particularly via their
inclusion in the pending Customs Modernization and
Tariff Act (CMTA) as well as in appropriate executive
issuances. It also hopes to help ensure the prompt
formulation of appropriate implementing rules and
regulations once the CMTA is passed, and the setting up
of a modern, transparent and well-coordinated customs
clearance system. TRADE will help analyse the
effectiveness of the NSW initiative, and support the
development and implementation of an ATA Carnet
system in the Philippines. (continue to Page 2)
In a post-meeting huddle during TRADEs orientation (L-R)
are deputy commissioners Agaton Uvero, Edita Tan,
TRADEs Dr. Habito and Ms. Cecille Reyes, Collector John
Simon, USAID Kevin Sharp, and deputy commissioner
Primo Aguas.

Key personnel of TRADE, led by Chief of Party Dr. Ciel Habito, presented an overview of the project to House
Speaker Sonny Belmonte and Congressman and Committee on Trade and Industry chairman Mark Villar on 5
November at the House of Representatives. Also in attendance were the chairmen of other economic-affairs
related House committees: Reps. Enrique Cojuangco (Economic Affairs), Nelson Collantes (Banks and
Financial Intermediaries), Romero Quimbo (Ways and Means) and Isidro Ungab (Appropriations).
Dr. Habito explained TRADEs main objective of promoting higher inclusive economic growth for the
Philippines, particularly by way of achieving AEC 2015 compliance as well as the countrys eventual readiness
and participation in the Trans-Pacific Partnership agreement. He reiterated that TRADE is prepared to provide
technical assistance to legislators and their technical staff on key items in legislation, particularly the
Competition Policy law and the Customs Modernization and Tariff Act (CMTA). (continue to Page 2)


Former ministers share views on redefining public utilities
TRADE, through subcontractor Center for the Advancement of Trade Integration and Facilitation (CATIF), recently
invited three key economic policymakers in the 1970s to share their views on the topic of refning the defnition of
public utilities toward increasing investment activities open to foreign equity participation. In an informal roundtable
discussion with CATIF experts and TRADE staf last November 8 in Makati City, former ministers Cesar E. A. Virata
(Finance), Vicente Paterno (Industry) and Dr. Gerardo Sicat (NEDA) provided a historical perspective to the evolution
of foreign investment policies in the Philippines. CATIFs Dr. Emmanuel De Dios and Atty. Raphael Perpetuo Lotilla
steered the discussion, which was in line with TRADEs eforts to provide technical basis for the amendment of the
Public Service Act of 1936. The discussion was also attended by other CATIF professionals including Drs. Florian Alburo
and Joy Abrenica, Loreli de Dios and Atty. Elaine Collado, along with TRADE staf. (continue to Page 2)
(L-R) former Economic Planning Minister and NEDA Director General Dr. Gerardo Sicat, former Trade and Industry Minister Vicente
Paterno and former Prime Minister and Finance Minister Cesar Virata with competition policy specialists Justin Chan, Elaine Collado,
Isabela Villamil and Irish Almeida, and TRADE COP Ciel Habito. Also in photo is former Energy Secretary Raphael Perpetuo Loti lla
(lower right front).
2 TRADE / NOVEMBER 2013
TRADE PROJECT STAFF
Chief of Party: Dr. Cielito F. Habito Deputy
Chief of Party: Gareth J. Davies Senior
Adviser for Trade Policy: Dr. Ramon L.
Clarete Trade Policy Specialist: Myrene
Bedao Component Lead for Trade
Facilitaton: Cecilia V. Reyes Adviser for
Trade Facilitaton: Edmund C. Guamen
Component Lead for Competton Policy:
Gigo Alampay Monitoring and Evaluaton
Specialist: Miguel V. Guioguio
Communicatons Specialist: Kimi Tuvera
Research Assistant: Abigail Dumalus
Director of Operatons: Mitos Q. Aldave
Project Accountant: Imelda L. Mallari
Administratve Assistant: Rose Catndoy
TRADE meets with Speaker from Page 1
The Philippines can best enhance its membership
in the ASEAN Economic Community (AEC) by
ensuring that it meets its commitments under
the AEC Blueprint. Dr. Habito stressed to the
lawmakers that the economy is poised to
experience a breakout due to a resurgence in
manufacturing growth, and that the Philippines
could capitalize on atractng more investors to
setle here and grow their companies.
Opportunites in the AEC, he said, lie in the
regional value chains or producton networks.
Also discussed was the possible redefniton of
specifc laws, the alternatve to charter change if
the later would not be possible to ease foreign
entry in stll-restricted investment actvites.
Speaker Belmonte spoke of current eforts being
undertaken to relax foreign ownership
restrictons, such as a review of the Negatve List
in the Foreign Investments Act, and amendments
to the Public Service Act to redefne the scope of
defniton for public utlites, which are
partcularly restricted to Filipino ownership
under the Consttuton. Speaker Belmonte urged
TRADE and the Commitee Chairs to work
together toward the objectve of the 16th
Congress to achieve a truly investment grade
economy.
Former ministers from Page 1
TRADE aims to help identfy innovatve approaches
to ease ant-compettve regulatory burdens on
selected sectors of the economy. The discussion,
which was a trial run for a planned series of expert
discussions dealing on competton issues, sought to
examine the ratonale for classifying certain
industries as public utlites or public service facilites.
Redefning the scope of the term public utlity
through new legislaton is expected to encourage
greater investment and competton in, among other
areas, informaton and communicatons technology,
energy and transport services.
According to former Senator Paterno, there is no
ofcial defniton for public utlity in the law, as the
Public Service Act only defnes public utlity or
public service by enumeratng examples. Redefning
or liberalizing the defniton of public utlity is
relevant to the formulaton of a natonal competton
policy framework, a key actvity being pursued by
TRADE. Dr. Sicat observed that foreign capital has
been used as an engine of growth in our neighboring
economies, whereas the Philippine economy has
been lef behind. Traditonal lack of domestc savings
should have been compensated by foreign capital to
propel overall investment and economic growth.
The three former ministers agreed that technological
change has made the re-defniton of public utlity
necessary. They discussed alternatve approaches by
which existng foreign ownership restrictons on
investment may be eased, thereby make the
Philippines ready to partcipate in more ambitous
trade agreements like the Trans Pacifc Partnership.
Scenes from TRADE and i3 Offices Blessing Last November 20
Father Ram Rigunay of Greenbelt Makat reads the
opening prayer at the entrance of the TRADE/i3 ofces .
i3s Maricor dela Cruz and TRADE staf led by COP Habito,
DCOP Davis, Rose Catndoy and Dr. Clarete with Father
Rigunay .
Father Rigunay blesses the TRADE/i3 Christmas tree .
Blessing of the technical staf cubicles.
Dr. Gilbert Llanto of PIDS, Dr. Clarete. Father
Rigunay and Dr. Habito
BOC from page 1
TRADE is conductng a peer review of the CMTA
for consistency with the provisions of the
Revised Kyoto Conventon (RKC) and the
Philippines-US Trade Facilitaton Protocol
(PUSTFP). The Bureaus Internatonal Afairs
Chief, John Simon, was tasked to be the regular
direct point of contact for TRADE on behalf of the
counterpart team.