Council for Trade in Services - Notification pursuant to article III:3 of the General Agreement on Trade in Services - Philippines

NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES

The following notification, dated 10 December 2024, from the delegation of the Philippines, is being circulated to Members of the Council for Trade in Services.

 

_______________

 

 

1  MEMBER NOTIFYING:

Philippines

2  NOTIFICATION UNDER:

Article III:3 of the General Agreement on Trade in Services

3  DATE OF ENTRY INTO FORCE:

4 April 2023

3.1  Duration:

Indefinite

4  AGENCY RESPONSIBLE FOR ENFORCEMENT OF THE MEASURE:

Administrative Agencies under Section 3 (Recognition of Transfer of Jurisdiction to Various Administrative Agencies) of Republic Act No. 11659 – An Act Amending Commonwealth Act No. 146, Otherwise Known as the Public Service Act, as amended. Based on the Implementing Rules and Regulations of RA 11659, this Section also includes all other Administrative Agencies that have, or may be authorized to exercise a similar function as approved by Congress or other responsible authority, as appropriate.

5  DESCRIPTION OF THE MEASURE:

Republic Act No. 11659 or “An Act Amending Commonwealth Act No. 146, Otherwise Known as the Public Service Act, as Amended” and its Implementing Rules of Regulation (IRR).

The law, which amends the Public Service Act, enables full foreign ownership of key public services that are not classified as public utilities. Foreign ownership in public services that are classified as public utilities, such as electricity transmission and distribution; water and wastewater pipeline distribution systems including sewerage; petroleum and petroleum products pipeline transmission systems; seaports, and public utility vehicles is permitted up to 40 percent. This now allows full foreign ownership of businesses in public services, such as shipping, airports, railways, expressways, and telecommunications. Prior to the approval of the amendments, foreign ownership in all public services was limited to 40 percent.

6  MEMBERS SPECIFICALLY AFFECTED, IF ANY:

None

7  TEXTS AVAILABLE FROM:

https://www.officialgazette.gov.ph/2022/03/21/republic-act-no-11659/ and https://neda.gov.ph/irr-ra11659-psa/

 

__________