WHEREAS, a critical need exists for further integrating under one ministry the authority and responsibility for export trade promotion, particularly in the formulation of policies and programs;

WHEREAS, the Ministry of Trade is the logical repository of the functions and authority required to render operational the national export strategy in a manner consistent with the Philippine Socio-Economic Development Plans;

WHEREAS, the private sector must parallel governmental efforts to generate foreign currency earnings through exports, an objective which is best accomplished through the participation of the private sector in the process of determining policy directions and identifying necessary changes in such directions whenever required for the purpose of formulating appropriate measures to meet changing foreign market patterns;

WHEREAS, by virtue of its linkages to the private sector, the Ministry of Trade possesses the necessary means for relating itself to the requirements and needs of the export industry and for encouraging the private sector to participate in the national effort to expand and diversify foreign markets for Philippine-made or processed products; and

WHEREAS, under Presidential Decree No. 1416, the President is empowered to undertake such organizational and related improvements as may be appropriate in the light of changing circumstances and new developments.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, and the authority vested in me by Presidential Decree No. 1416, do hereby order and ordain.

SECTION 1. Declaration of Policy. - It is hereby declared to be the policy of the government to promote and develop its foreign trade and, towards this end, encourage, expand and diversify export to existing and prospective foreign markets in order to generate additional employment and income, improve the balance of payments, and accelerate the economic development of the nation.

It is hereby further declared to be the policy of the government to assist and support private sector producers and traders in the development and promotion of Philippine commodities and services for export, and to optimize private sector participation in the formulation and implementation of government export development and promotion programs.

SEC. 2. Creation of the Philippine Export Advisory Council. - There is hereby created a Philippine Export Advisory Council, hereinafter referred to as the Council, which shall be attached to the Ministry of Trade. The Council shall be composed of the Minister of Trade, as ex-officio Chairman, and eight members from the private sector to be appointed by the President of the Philippines for a term of three (3) years from among the qualified candidates nominated by industry or trade associations whose members are involved in the production, marketing or financing of exports: Provided, however, That for the initial appointments to the Council, two members shall be appointed for one (1) year, two shall be appointed for two (2) years, and four shall be appointed for a full term of three (3) years. Thereafter, all succeeding appointments shall be made for a term of three years except appointments made to replace a member who for any reason whatsoever does not serve his full term, in which case the appointment of his replacement shall be coterminous with the unexpired term of the member replaced. The present members from the private sector of the Governing Council of the Philippine Export Council shall continue to serve as members of the Philippine Export Advisory Council until their successors have been appointed.

SEC. 3. Functions of the Council. - The Council shall render advice and counsel to the Minister of Trade with respect to Philippine products the export potential of which can be further developed; projects and programs on export promotion and market diversification; facilitation of trade procedures; and areas of possible collaboration between the Government and the private sector. The Council shall likewise adopt policy recommendations for submission to the Minister of Trade who shall, if he deems it appropriate or where other agencies are involved, present the same to the Cabinet or directly to the President of the Philippines for approval.

On its own initiative or on the basis of the recommendation of the various Product Committees created Section 5 hereof, the Council shall recommend ways and means of improving the operating environment for export producers and traders to the Minister of Trade who shall, if he deems it appropriate or where other agencies are involved, present the same to the Cabinet or directly to the President.

SEC. 4. Rules of Proceedings. - The Council shall adopt such rules as may be necessary to govern its proceedings.

SEC. 5. Product Committees. - The Council shall create Product Committees to be composed principally of members from the private sector to be appointed by the Chairman of the Council with the concurrence of a majority of the members thereof.

SEC. 6. Functions of the Product Committees. - The Committees shall conduct policy studies, formulate position papers on policy issues; gather, process, and disseminate export trade information; and adopt recommendations for submission to the Council, which shall submit them to the Minister of Trade. The Minister of Trade shall, if he deems it appropriate or where other agencies are involved, present the same to the Cabinet or directly to the President.

SEC. 7. Chairmanship and Proceedings of the Committees. - Each Committee shall elect a Chairman from among its members with the concurrence of the Council. The rules or proceedings for the Committee shall be prescribed by the Council.

SEC. 8. Secretariat for the Council. - The Council shall have a Secretariat which shall be under the supervision and control of the Chairman of the Council.

The Chairman of the Council shall appoint the personnel of the Secretariat subject to existing applicable rules and regulations, except as may otherwise be provided by law or Presidential directives: Provided, however, That contractual personnel of the Council who are to be wholly paid from funds contributed by the private sector shall be exempt from Office of Compensation and Position Classification and Civil Service rules and regulations.

SEC. 9. Abolition of the Philippine Export Council. - The Philippine Export Council including the Committee on Accredited Trading Companies and the Export Advisory Board, is hereby abolished and its appropriate functions, together with applicable appropriations, records, equipment, property and such personnel as may necessary are transferred to the Ministry of Trade: Provided, That part of the appropriations of the abolished Philippine Export Council as may be determined by the Minister shall be made available to the Philippine Export Advisory Council for its initial operating expenses.

SEC. 10. Contributions from the Private Sector. - The Chairman of the Council may arrange for contributions or donations from the private sector to augment the funds of the Council: Provided, however, That disbursements from these funds shall be in accordance with policies and guidelines as may be prescribed by the Council as well as with applicable laws.

SEC. 11. Repealing Clause. - Any and all acts, statutes, decrees, orders, rules and regulations, or parts thereof inconsistent herewith are hereby repealed or modified accordingly.

SEC. 12. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 7th day of December, in the year of Our Lord, Nineteen Hundred and Seventy-Nine.


By the President:

(SGD.) JACOBO C. CLAVE
Presidential Executive Assistant