This paper is part of a larger effort between the De La Salle University-Angelo King Institute for Economic and Business Studies (DLSU-AKIEBS) and the United States Agency for International Development (USAID) to provide inputs to policies in relation to the basic question of whether the Philippines should push through with a Free Trade Agreement (FTA) with the United States and if so, how can the country leverage such an FTA in terms of capability building, industrial and institutional adjustment, and others, for the various Philippine sectors.