Department of Trade and Industry
The DTI logo symbolizes the vision and values of Team DTI. The neat, simple yet
bold, typeface connotes stability. It also signifies willingness and ability to take
pro-active measures and clearly-defined approaches to achieve measurable
results. The connected letters (dti) stand for a unified team working as
one with all instrumentalities of the government and the private
sector to build a strong nation that is one in purpose and
aspiration.
The Philippine map within the dot of the letter i signifies a
country with a strong presence in the global marketplace. The colors
represent the Philippine flag: red, for moral courage and strength of vision;
blue, for integrity and loyalty to country; and white, for transparency in governance
and the quest for justice, prosperity, and peace.
Legal Basis
l Presidential Decree 488 (June 21, 1974) created the Department of Industry whose principal
function was to promote and enhance the growth of the countrys existing and thriving industries.
l Presidential Decree 721 (June 2, 1975) created the Department of Trade to pursue efforts
of the government toward strengthening the countrys socio-economic development, particularly
in the area of commercial activities. It also established a Bureau of Foreign Trade to push for
domestic trade and marketing programs.
l Executive Order 709 (July 27, 1981) created the Ministry of Trade and Industry which took
over the functions of the subsequently abolished Departments of Trade and of Industry.
l Executive Order 133 (February 27, 1987) reorganized the Ministry of Trade and Industry,
and renamed it the Department of Trade and Industry.
Mandate
The Department of Trade and Industry (DTI serves as the primary coordinative, promotive,
facilitative, and regulatory arm of the government for the countrys trade, industry, and investment
activities. It acts as catalyst for intensified private sector activity to accelerate and sustain economic
growth through a comprehensive industrial growth strategy, a progressive and socially responsible
liberalization and deregulation program, and policies designed for the expansion and diversification
of both domestic and foreign trade.
Central to our global engagement and hence our development agenda is trade. Trade is not an
end in itself but a means to social and human development. Properly employed, trade policies
enhance our access to a wider range of goods, services, technologies and knowledge. More trade
stimulates entrepreneurship, creates jobs, attracts capital, increases foreign earnings and fosters
vital learning processes. These are the tools for sustainable development and the reduction of poverty.
- PGMA, May 30, 2002
LOGICAL FRAMEWORK (DTI)
Societal Goals Economic Growth and Poverty Reduction
Sectoral Goals Job Generation Global Competitiveness
Organizational
Outcomes
Increased Export Increased Increased Ensured Consumer
of Goods and Investments Competitiveness Welfarre
Services of MSMEs
Major Final
Outputs
(MFOs) 1 2 3 4
International Trade Industry Development and Consumer Welfare
Policy Negotiation, Development Promotion and Protection
Facilitation, and and Investment Services for Services
Promotion Services Promotion and MSMEs
Facilitation Services
Major P/A/Ps
Formulation of plans, programs, Formulation of plans, programs Formulation of plans, programs, Formulation of plans, programs,
and policies for the promotion and policies for industry and policies for MSME and policies for consumer
and facilitation of exports development, and investment development and promotion
Policy advocacy/enabling welfare and protection
environment promotion and facilitation
Policy advocacy/enabling Policy advocacy/enabling
Implementation of trade
remedy measures against unfair Policy advocacy/enabling environment
environment
trade practices and/or surges in environment
imports Conduct of business matching
Negotiation of bilateral/ activities Price and supply stabilization
multilateral/international Conduct of focused investment Business regulation (e.g., business
agreement promotion campaign, investor Conduct of selling missions and name registration)
Commercial intelligence servicing, and awareness domestic/local trade fairs
Accreditation of certifying activities Enforcement/promotion/
bodies/conformity assessment Operation of trade houses/
bodies/testing and calibration monitoring of Fair Trade Laws
Registration of investment centers
laboratories
Participation in international/ projects Consumer assistance/response
Organization of product
regional standardization and mediation/arbitration of
program (e.g. International showcase
Operation and maintenance of consumer complaints/cases
Organization for Standardization/ Build - Operate -Transfer
International Electrotechnical Promotion of indigenous raw
Commission) Center (BOT) materials Development of PNS
Provision of information through
servicing of trade inquiries, Development of new Conduct of resource mapping Product certification scheme and
rendering export advisory approaches to enhance labor- activities product testing
services, developing info in management cooperation for
products and markets, and Conduct of training/seminars
conducting information sessions quality and productivity Accreditation of freight
Alignment of Phil. National Conduct of business counseling forwarders
Standards (PNS) with Activation of quick reaction and consultancy services to Implementation of PD 1466
international standards teams (Cargo Reservation Law)
Resolution of trade complaints MSMEs
Issuance of export clearance and
accreditation of exporters Conduct of plant-level Facilitation in the conduct of Consumer protection advocacy,
Participation in conduct of local/ productivity training/seminars product research, development training, and education/
international fairs, trade missions Administration of Philippine and design services information programs
and exhibits Quality Award/s Program
Conduct of business matching Monitoring of industrial training Facilitation in the conduct of
activities Organization/strengthening of
design promotion activities
Provision of cargo consolidation programs consumer organizations
networking services Facilitation in accessing credit for
Participation/coordination with MSMEs Regulation of importation of used
international counterparts for motor vehicles and spare parts
policy coordination and
formulation relative to shipping/ Maintenance/operation of SME
logistics interests Centers
SECTOR GOALS
Job Creation. Global Competitiveness. Stable Prices. Value for Money. These are the primary
goals and objectives of the government. To ensure their achievement is the duty of the Department
of Trade and Industry, an agency with the dual mission of facilitating the creation of a business
environment where participants could compete, flourish, succeed and, at the same time, ensuring
the utmost welfare of consumers.
The Department of Trade and Industry is, therefore, expected to contribute to the attainment of the
sectoral goals of job generation and global competitiveness by expanding exports; increasing
investments; and promoting and developing micro, small, and medium enterprises (MSMEs). To
preserve public interest, the DTI is likewise mandated to promote consumer protection and welfare,
consistent with the government policy to nurture an environment that is conducive to doing business.
ORGANIZATION OUTCOMES
The DTI Roadmap subscribes to a market-driven economic growth, which harnesses potential
MSMEs, promotes trade as well as domestic and foreign investments, and ensures value for
money, through globally competitive exports and industries and a bureaucracy that is committed to
operational efficiency.
These priorities are expected to contribute to the achievement of national goals of sustained economic
growth and an improved quality of life of every Filipino, through poverty reduction.
Given its mandate and priorities, which are recurring themes that overall make up DTIs thrusts,
the following are the Departments organizational outcomes:
Export of Goods and Services Increased
Increased exports is the key to economic growth. The nature of global trade is changing amidst
moderate world economic growth. To embark on this goal, the DTI must enhance trade expansion
through policy negotiations and export trade promotion.
Investments Increased
The investment-led growth strategy espoused in the 2004-2010 Medium Term Philippine
Development Plan (MTPDP) is expected to boost industry and services, the key growth drivers of
the economy. Attraction of foreign and domestic investments, through a positive investment climate,
would translate to increased capital, infusion of new technologies, and generation of more jobs.
Competitiveness of MSMEs Increased
Developing MSMEs means creation of employment which gives a tremendous boost to the
diversification of industries and equitable distribution of wealth. It is nationally significant to properly
address Philippine micro, small, and medium enterprise development by creating dynamic and
progressive MSMEs, given their critical contribution to economic growth.
Consumer Welfare Ensured
The proliferation of uncertified products, both locally-manufactured and imported; increasing
violations of Fair Trade Laws; rising number of consumers seeking redress due to a more informed
citizenry; the high cost of distribution, resulting in higher prices of basic commodities; and the
evolving complexity of consumer transactions all necessitate more pro-active government initiatives.
The challenge is to create an environment where the interest of consumers is protected through a
fair and competitive marketplace. The DTIs role is to ensure a market that is more receptive to the
standards of conduct of business and industry, that allows the efficient distribution of basic
commodities and the speedy resolution of consumer concerns.
MAJOR FINAL OUTPUTS
The Major Final Outputs (MFOs) of the DTI highlight the Departments contributions to the
achievement of the countrys key societal goals of national economic growth and poverty
reduction; and to the twin sectoral (industry and services) goals, which are job generation and
global competitiveness.
The functions of the DTI are performed with improved delivery of services by transparency and
accountability consistent with the Departments mantra: Consumer Matters, Business Gains.
It has adopted four (4) MFOs:
1. International trade policy negotiation, facilitation, and promotion services
The DTIs crucial role in trade policy negotiation, facilitation, and promotion is clear and
evident. In recent years, the Philippines took a more pro-active stance in trade policy
negotiations, making sure we protect and further our national interests and aligning our product
and market strategies with the dynamics of the world trading system. We need to expand our
exports through market access and product diversification. We need to face the challenges in
the international front. The Department recognizes that it should avoid fully embracing unbridled
liberalization but instead face the legitimate challenge of international competitiveness.
The Department, together with other government agencies and the private sector, as enshrined
in the Philippine Export Development Plan (PEDP) 2004-2007, shall intensify the linkage
between market access negotiations and trade promotion activities. Effective combination of
these two enables better matching between RP export supply capabilities and market demand.
Such alignment would maximize the countrys limited resources and have a higher impact on
export performance. Geographic markets would be ASEAN, China, Japan, USA, and EU.
In addition to the key markets as specified in the PEDP, secondary markets shall be addressed
based on the opportunities that are presented by trade agreements, business matching, and
those resulting from developmental activities of government and the private sector. Opportunities
provided by specific market segments such as those defined along cultural bounds shall likewise
be tapped. These culture-based markets that will provide opportunities to Philippine exports
include, but are not limited to, halal, kosher, and overseas Filipinos. Also, as provided in the
PEDP, the key concern from the supply side is the countrys capability to meet the demands of
markets. Specific interventions are necessary along the supply chain of each Revenue Stream
(priority sector) to ensure one or combinations of the following:
§ Compliance with market regulations;
§ Achievement of critical supply levels;
§ Integration of widely-accepted technological innovations;
§ Improvement of competitiveness; and
§ Creation of high-impact strategic partnerships.
Other specific strategies and interventions would include: promoting service-oriented exports
and nurturing the capabilities of globally competitive enterprises that produce high quality
products; accelerating industry clustering programs to enhance competitiveness; pursuing a
country branding program to promote the Philippines as a source of quality and competitive
products; and strengthening strategic alliances and partnerships with the export sector, business
support organizations, other government entities, and embassies and foreign trade offices to
address the proper valuation of exports and imports, thereby increasing revenues. The
Department shall also guarantee a policy and financing environment that is conducive to export
growth.
Programs/Activities/Projects (PAPs)
§ Formulation of plans, programs, and policies for the promotion and facilitation of exports
§ Policy advocacy/enabling environment
§ Implementation of trade remedy measures against unfair trade practices and/or surges in
imports
§ Negotiation of bilateral/multilateral/international agreement
§ Commercial intelligence
§ Accreditation of certifying bodies/conformity assessment bodies/testing and calibration
laboratories
§ Participation in international/regional standardization program (e.g. International Organization
for Standardization/International Electrotechnical Commission)
§ Provision of information through servicing of trade inquiries, rendering export advisory
services, development of information of products and markets, and conduct of information
sessions
§ Alignment of Philippine National Standards (PNS) with international standards
§ Resolution of trade complaints
§ Issuance of export clearance and accreditation of exporters
§ Participation in conduct of local/international fairs, trade missions and exhibits
§ Conduct of business matching activities
§ Provision of cargo consolidation networking services
§ Participation/coordination with international counterparts for policy coordination and
formulation relative to shipping/logistics interests
2. Industry development and investment promotion and facilitation services
The DTIs agenda is to create economic activity. The focus is to make the economy more
robust by implementing measures that shall attract more investments and allow businesses to
grow and expand.
As the vanguard of investment promotion, the Department undertakes initiatives to address
investor concerns in the areas of labor, immigration, bureaucracy and red tape, security and
peace and order, taxation, and tariff. It continuously contributes to the creation of a conducive
business environment by developing measures and action plans to attract more investors in the
country. Through public and private partnerships, the DTI aggressively pursues the provision
of necessary infrastructure support to entice more investors and to retain them in the country.
To enhance the countrys investment promotion program, the DTI aggressively pursues the
Retention, Expansion, and Diversification (RED) Program to encourage the growth and stability
of businesses. Other strategies include: rationalization of the incentives system; revitalization
of the mining industry; focus on high-end, high-value investments; aggressive promotion of the
country as a provider of services in IT, medical tourism, eco-tourism, and logistics hubs; and
completion of ongoing and pipeline infrastructure projects (through the Philippine Infrastructure
Corporation) to spur further economic activity; and initiating policy reforms, among others.
Programs/Activities/Projects (PAPs)
§ Formulation of plans, programs and policies for industry development and investment
promotion and facilitation
§ Policy advocacy/enabling environment
§ Conduct of focused investment promotion campaign, investor servicing and awareness
activities
§ Registration of investment projects
§ Operation and maintenance of Build - Operate -Transfer Center (BOT)
§ Development of new approaches to enhance Labor-Management Cooperation for Quality
and Productivity
§ Activation of quick reaction teams
§ Conduct of plant-level productivity training/seminars
§ Administration of Philippine Quality Award/s Program
§ Monitoring of industrial training programs
3. Development and promotion services for MSMEs
The DTI is the primary agency in the promotion and development of MSMEs through the
provision of various assistance and interventions, e.g., financing, marketing and promotion,
human resource development, product development, and advocacy. The focus on MSME
promotion and development is geared towards the graduation to higher levels of undertaking,
from micro to small and from small to medium enterprises. A stable framework has been
developed for the proper implementation of MSME development policies, programs, and
strategies consistent with the provisions of the Small and Medium Enterprise (SME)
Development Agenda.
Programs/Activities/Projects (PAPs)
§ Formulation of plans, programs, and policies for MSME development and promotion
§ Policy advocacy/enabling environment
§ Conduct of business matching activities
§ Conduct of selling missions and domestic/local trade fairs
§ Operation of trade houses/centers
§ Organization of product showcase
§ Promotion of indigenous raw materials
§ Conduct of resource mapping activities
§ Conduct of training/seminars
§ Conduct of business counseling and consultancy services to MSMEs
§ Facilitation in the conduct of product research, development, and design services
§ Facilitation in the conduct of design promotion activities
§ Facilitation in accessing credit for MSMEs
§ Maintenance/operation of SME Centers
4. Consumer welfare and protection services
Guaranteeing consumer welfare entails an unyielding quest for strategic policies and interventions
that would result in better consumer protection. To attain this goal, the DTI serves as a
catalyst in promoting a vibrant and sustainable trading environment through the development
and enforcement of policies, trade regulations, and world class product standards while
promoting the efficient distribution of goods and services through regular monitoring of supply
and price levels of basic and prime commodities.
The DTI goes beyond the traditional scope of consumer welfare by being an advocate on
behalf of consumers. Over the past years, the Department has been strengthening its linkage
with private consumer organizations, increasing media awareness of the general public on
specific consumer issues, and providing speedy resolution on consumer complaints. The
Department also undertakes aggressive price monitoring and conducts regular market visits to
ensure that basic and prime commodities are made available to consumers at reasonable
prices.
Programs/Activities/Projects (PAPs)
§ Formulation of plans, programs, and policies for consumer welfare and protection
§ Policy advocacy/enabling environment
§ Price and supply stabilization
§ Business regulation (e.g., business name registration)
§ Enforcement/promotion/monitoring of Fair Trade Laws
§ Consumer assistance/response and mediation/arbitration of consumer complaints/cases
§ Development of PNS
§ Product certification scheme and product testing
§ Accreditation of freight forwarders
§ Implementation of PD 1466 (Cargo Reservation Law)
§ Consumer protection advocacy, training, and education/information programs
§ Organization/Strengthening of consumer organizations
§ Regulation of importation of used motor vehicles and spare parts
It is emphasized that the DTI functions using the soup-to-nuts approach where the whole
gamut of required services, from enterprise formation to production, sale/distribution of goods
in either the domestic and/or export markets, shall involve the intervention of the appropriate
operating units in the entire business process. The services, which range from investments
facilitation, generation and promotion, MSME development and promotion, trade negotiation,
development and promotion, as well as consumer protection, highlight the equal importance
given by the Department to both the producers (firms) and consumers of the goods and services.
To reiterate: in DTI, Consumer Matters, Business Gains.
Performance Measures and Targets
Particulars FY 2007 Targets
MFO 1
International trade policy negotiation, facilitation, and promotion services
No. of policy proposals approved/endorsed by the Secretary 14
Amount of export sales generated from DTI-initiated events
(USD, in millions) 217.03
% of total PNS aligned with international standards 85
Reduced processing time (%) 50
Client satisfaction feedback 90
MFO 2
Industry development and investment promotion and facilitation services
No. of policy proposals approved/endorsed by the Secretary 2
Amount of investments generated from DTI-initiated events
(Ph Peso, in millions) 6,634.18
Client satisfaction feedback (%) 90
MFO 3
Development and promotion services for MSMEs
No. of policy proposals approved/endorsed by the Secretary 5
Amount of domestic sales generated from DTI-initiated events
(Ph Peso, in millions) 2,255
No. of SMEs assisted 23,129
Client satisfaction feedback (%) 90
Particulars FY 2007 Targets
MFO 4
Consumer welfare and protection services
No. of policy proposals approved/endorsed by the Secretary 20
Percentage of compliance with Fair Trade Laws (%) 100
No. of PNS developed 500
No. of Philippine Standards (PS) licenses and Import
Commodity Clearances (ICC) issued
No. of PS mark issued 500
No. of ICC issued 1,500
Reduced processing time (%) 50
Client satisfaction feedback (%) 90
FY 2007 OPIF-Based Budget
FY 2007 Budget by MFO, Expense Class
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MFO 2
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Budget Highlights
Priority Programs and Projects
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