ABSTRACT
As countries internationalise and expand their reach in the global value chain, economies are also intensifying their participation in regional integration and free trade agreements (FTAs). The FTAs have become important instruments in increasing the economies’ participation and foothold in the global value chain. With the world economy also entering a new phase and increasingly becoming more interconnected, the FTAs have been reshaped to adapt to these changes and address the concerns in earlier versions. The legal system regulating foreign investors and investments consists of the Philippine Constitution, national statutes or laws, and departmental rules and regulations. The national treatment obligation requires parties to extend equal treatment between foreign and domestic investors and their investments. Discrimination against foreign investors in the Philippines is usually in the form of ownership, whereby participation of foreign capital is limited in terms of the maximum foreign shareholding.
