The Philippines is a country that practices a market economy, implementing unified management and laws and regulations for domestic commerce and industry, foreign trade, domestic investment, and foreign investment. Since joining the General Agreement on Tariffs and Trade in 1979 and becoming a founding member of the WTO in 1995, the relevant provisions and principles of the WTO have become the legal basis for the Philippines to protect its national interests and resolve trade disputes in WorldWay competition.
Currently, the laws related to foreign trade and the utilization of foreign capital in the Philippines mainly include the following three categories:
1. Fair Trade Laws
The main purpose of these laws and regulations is to maintain fair competition in the domestic market and protect the legitimate rights and interests of domestic consumers. They mainly include regulations on the labeling of goods sold in the Philippine market (RA ACT 71), regulations on retail operations (RA ACT 1180), regulations on consumer rights protection (RA ACT 7394), regulations on stabilizing the prices of essential goods (RA ACT 7581), regulations promoting foreign investment in commerce (RA ACT 7042), and penalties for violations of the above regulations.
Additionally, the Philippine government has recently issued regulations to relax restrictions on foreign enterprises investing in the retail sector (RA ACT 8762) and extensively raised environmental requirements for products (RA ACT 8749).
2. Trade Protection Regulations Established According to WTO Principles and Rules
The main purpose of these regulations is to maximize the protection of domestic industries and markets from the impact of foreign goods based on the relevant principles of the WTO. They mainly include the Anti-Dumping Law (RA ACT 8752), the Countervailing Law (RA ACT 8751), and the Safeguard Measures Law (RA ACT 8800).
3. Investment Regulations
To create a favorable investment environment and make the Philippines an ideal area for foreign investment, the Philippine government has successively issued a series of laws and regulations to attract foreign investment. This mainly includes the Foreign Investment Act (RA ACT 8179), which was enacted in 1991 to lift restrictions on foreign investment, and the Special Economic Zone Act to attract foreign investment in economic zones, as well as the Investment Lease Law and laws providing investment incentives for the export sector, such as the Export Development Act.
