All fishery activities in municipal waters shall be utilized by municipal fisherfolk and their cooperatives or organizations who are listed as such in the registry of municipal fisherfolk.
Commercial Fishing
No commercial fishing vessel license shall be issued except to citizens of the Philippines, partnerships or to associations, cooperatives or corporations duly registered in the Philippines at least 60 per cent of the capital stock of which is owned by Filipino citizens, subject to requirements and compliance with certain conditions.
Foreign owned vessels are not allowed to conduct fishing operations in all Philippine waters.
Note: There is a moratorium on the issuance of commercial fishing vessel and gear licenses and other clearances.
Fishpond
No fishpond lease agreements may be issued for public lands that may be declared available for development primarily except to citizens of the Philippines, or fisherfolk cooperatives or associations. In the absence of such citizens or fisherfolk cooperatives of associations, corporations duly incorporated in the Philippines at least 60 per cent of the capital stock of which is owned by Filipino citizens may be granted fishpond lease agreement subject to requirements and compliance with certain conditions.
Aquaculture
Aquaculture is reserved for citizens of the Philippines and corporations or associations duly incorporated under the laws of the Philippines where at least 60 per cent of the capital stock or interest belongs to citizens of the Philippines, subject to requirements and compliance with certain conditions.
Source of Measure
- R.A No. 8550, the Philippine Fisheries Code of 1998, as amended by R.A. No. 10654
- Presidential Decree No. 704 (May 16, 1975), the Fisheries Decree of 1975
- R.A. No. 7160, the Local Government Code of 1991
- Administrative Issuances
4. Sector: Mining and Quarrying
Subsector: Salt Production
Industry Classification: ISIC 1422 Extraction of salt
Level of Government: All levels
Type of Obligation: National Treatment. Most-Favoured-Nation Treatment. Senior Management and Board of Directors
Description of Measure
Only Filipino citizens of legal age, a corporation, association or cooperative duly constituted under the laws of the Philippines, 60 per cent of the capital of which is owned by Filipino citizens may enter into a Salt Production Sharing Agreement with the Philippine Govemment, subject to compliance with requirements and terms and conditions.
Source of Measure
- The 1987 Philippine Constitution
- Department of Environment and Natural Resources Administrative Order No. 1998- 67, as amended
5. Sector: Mining and Quarrying
Subsector: Small Scale Mining
Industry Classification:
Level of Government: All levels
Type of Obligation: National Treatment
Description of Measure:
Small-scale mining is reserved to Filipino citizens who, individually or in the company of other Filipino citizens, voluntarily form a cooperative duly licensed by the Philippine Government. The processing of mineral ores and minerals they produced is reserved to Filipino citizens.
Source of Measure
- The 1987 Philippine Constitution
- R.A. No. 7942, the Philippine Mining Act of 1995
- R.A. No. 7076, the People's Small-Scale Mining Act of 1997
- RA. No. 7586, the National Integrated Protected Areas System of 1992
- RA. No. 7160, the Local Government Code of 1991
- Administrative Issuances
6. Sector: Manufacturing
Subsector: Defense-related manufacturing and repair activities, manufacture of firecrackers and other pyrotechnic devices, and dangerous drugs
Industry Classification: ISIC Division 24, Manufacture of chemicals and chemical products
ISIC 242 Manufacture of other chemical products n.e.c.
ISIC Group 2927, Manufacture of arms and ammunitions
ISIC Division 35, Manufacture of other transport equipment
Level of Government: All levels
Type of Obligation: National Treatment. Most-Favoured-Nation Treatment. Prohibition of Performance Requirements
Description of Measure:
Defense-related activities, such as_ the manufacture, repair, storage or distribution of firearms, ammunition, lethal weapons, military ordinance, explosives, pyrotechnics and similar materials, shall be limited only to Filipino citizens, corporation, association or cooperative duly constituted under the laws of the Philippines, 60 per cent of the capital of which is owned by Filipino citizens, subject to prior clearance and authorization from the Philippine Government.
A license or permit to manufacture or to deal in wholesale or retail of firecrackers and pyrotechnic devices shall be issued only to: (a) Filipino citizens of good moral character; or (b) entities with 100 per cent capitalization owned by Filipino citizens.
Manufacture of dangerous drugs is limited only to Filipino citizens, corporation, association or cooperative duly constituted under the laws of the Philippines, 60 per cent of the capital of which is owned by Filipino citizens, subject to prior clearance and authorization from the Philippine Government.
Source of Measure
- The 1987 Philippine Constitution
- RA. No. 11647, An Act Promoting Foreign Investments, Amending Thereby R.A. No. 7042, Otherwise Known as the "Foreign Investments Act of 1991," as Amended, and for Other Purposes
- RA. No. 9165, the Comprehensive Dangerous Drugs Act of 2002
- R.A. No. 7183, An Act Regulating the Sale, Manufacture, Distribution and Use of Firecrackers and other Pyrotechnic Devices
7. Sector: Manufacturing
Subsector: Atomic Energy Facility
Industry Classification: ISIC Division 29 Manufacture of machinery and equipment n.e.c.
Level of Government: All levels
Type of Obligation: National Treatment. Most-Favoured-Nation Treatment. Prohibition of Performance Requirements
Description of Measure:
No license to acquire, own or operate any atomic energy facility shall be issued to an alien, or any corporation or other entity which is owned or controlled by an alien, a foreign corporation, or a foreign goverment, subject to compliance requirements and terms and conditions. A corporation or entity is not owned or controlled by an alien, a foreign corporation or a foreign government if at least 60 per cent of its capital stock is owned by Filipino citizens.
Note:
"Atomic energy facility" means any equipment or device which the Philippine Government may determine from time to time, by regulation, to be capable of producing or utilizing atomic energy material in such quantity or in such manner as to be of significance to the national interest or to the health and safety of the public.
Source of Measure
- RA. No. 5207, the Atomic Energy Regulatory and Liability Act of 1968
- Presidential Decree No. 1484, Amending Certain Sections of Republic Act Numbered Fifty-Two Hundred and Seven Enltitled "An Act Providing for the Licensing and Regulation of Atomic Energy Facilities and Materials, Establishing the Rules on Liability for Nuclear Damage, and for Other Purposes"
8. Sector: Manufacturing
Subsector: Mass Media, Printing and Publishing
Industry Classification: ISIC Division 22
Level of Government: All levels
Type of Obligation: National Treatment
Description of Measure:
The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations or associations wholly owned and managed by such citizens.
Note:
"Mass Media" refers to the print medium of communication, which includes all newspapers, periodicals, magazines, joumals, and publications and all advertising therein, and billboards, neon signs and the like, and the broadcast medium of communication, which includes radio and television broadcasting in all their aspects and all other cinematographic or radio promotions and advertising.
Source of Measure:
- The 1987 Philippine Constitution
- Presidential Decree No. 1018, Limiting the Ownership and Management of Mass Media to Citizens of the Philippines and for Other Purposes
- Presidential and Administrative Issuances
8. Sector: All sectors
Subsector: -
Industry Classification :-
Level of Government: All levels
Type of Obligation: National Treatment. Senior Management and Board of Directors. Prohibition of Performance Requirements
Description of Measure:
Any employer who desires to engage an alien for employment in the Philippines shall obtain approval of the government and be subject to compliance with certain conditions relating to the following: (1) duration; (2) employment position; (3) non-availability of a local person; (4) understudy training for Filipinos; and (5) percentage of employment of foreign nationals vis-a-vis the total workforce.
Source of Measure
-The 1987 Philippine Constitution
- RA. No. 11232, the Revised Corporation Code of the Philippines
- Commonwealth Act No. 108, An Act fo Punish Acts of Evasion of Laws on the Nationalization of Certain Rights, Franchises or Privileges, as amended by Presidential Decree No. 715, otherwise known as "The Anti-Dummy Law", as may be amended
- RA No. 11647, An Act Promoting Foreign Investments, Amending Thereby R.A. No. 7042, Otherwise Known as the "Foreign Invesiments Act of 1991," as Amended, and for Other Purposes
- Presidential No. 442, the Labor Code of the Philippines
- RA No. 7916, The Special Economic Zone of 1995, as amended
- RA. No. 8756, An Act Providing for the Terms, Conditions and Licensing Requirements of Regional or Area Headquarters, Regional Operating Headquarters, and Regional Warehouses of Multinational Companies, Amending for the Purpose Certain Provisions of Executive Order No. 226, the Omnibus Investments Code of 1987
- Securities and Exchange Commission Issuances and Opinions
10. Sector: Manufacturing
Subsector: -
Industry Classification :-
Level of Government: All levels
Type of Obligation: National Treatment. Most-Favoured-Nation Treatment. Senior Management and Board of Directors. Prohibition of Performance Requirements
Description of Measure
The processing of the following products is limited only to Filipino citizens, or corporations or associations at least 60 per cent of whose capital is owned by Filipino citizens, subject to compliance of requirements, terms and conditions:
1. copper wires;
2. copper bars, sheets and strips;
3. brass, bronze and other alloys of copper;
4. nickel pig iron; and
5. ferronickel.
Source of Measure:
- The 1987 Philippine Constitution
- RA. No. 7942, the Philippine Mining Act of 1995
- Executive Order No. 79, Series of 2012, Institutionalizing and Implementing Reforms in the Philippine Mining Sector Providing Policies and Guidelines to Ensure Environmental Protection and Responsible Mining in the Utilization of Mineral Resources
- Executive Order No. 226, the Omnibus Investments Code of 1987, as amended
- Presidential and Administrative Issuances
11. Sector: All sectors
Subsector -
Industry Classification :-
Level of Government: All levels
Type of Obligation: Prohibition of Performance Requirements
Description of Measure
The adoption of a given rate or amount of royalty under a license contract is subject to approval, terms and conditions and compliance requirements imposed, by the relevant government agency under Philippine laws and regulations.
Source of Measure: Administrative Issuances
LIST B . EXPLANATORY NOTES
1. This List B sets out, pursuant to Article 13 (Reservations and Non-Conforming Measures) of Chapter 11 (Investment), measures that the Philippines may maintain existing, or adopt new or more restrictive measures that do not conform to the obligations under:
(a) Article 3 (National Treatment) of Chapter 11 (Investment);
(b) Article 4 (Most-Favoured-Nation Treatment) of Chapter 11 (Investment);
(c) Article 5 (Senior Management and Board of Directors) of Chapter 11 (Investment); and
(d) Article 6 (Prohibition of Performance Requirements) of Chapter 11 (Investment).
2. This List B and List A follow the negative list with two list approach as follows:
(a) List A sets out commitments in relation to existing non-conforming measures which will be subject to standstill obligations but not subject to ratchet mechanism; and
(b) This List B sets out policy flexibility in relation to measures in sectors, subsectors and activities.
3. Each reservation shall set out the following elements, where applicable:
(a) Sector refers to the sectors for which a reservation is taken;
(b) Subsector refers to specific industries, products, or activities in which a reservation is taken;
(c) Industry Classification refers to the activities covered by the reservation according to International Standard Industrial Classification ("ISIC") Revision 3 for manufacturing, agriculture, fishery, forestry, mining and quarrying. If the reservation does not exactly conform to the ISIC, the Philippines specified the coverage of the reservation, as necessary and appropriate;
(d) Level of Government specifies the level of government maintaining the measure for which a reservation is taken;
(e) Type of Obligation refers to the obligation of National Treatment, Most-Favoured-Nation Treatment, Senior Management and Board of Directors and Prohibition of Performance Requirements, as the case may be, which does not apply to the listed measure;
(f) Description of Measure refers to measures that do not conform to National Treatment, Most-Favoured-Nation Treatment, Senior Management and Board of Directors and Prohibition of Performance Requirements, for which a reservation is taken; and
(g) Source of Measure refers to existing measures that apply to the sector, subsector or activities covered by the reservations and is identified for transparency purposes only.
4. In the interpretation of a reservation, all elements of a reservation shall be considered. The Description of Measure element shall prevail over all other elements.
5. These Explanatory Notes shall form part of this List B.