Domestic regulation is a major element that defines the global trade in services under the rules of GATS. The study traces the various perspectives in the formulation of domestic regulation from market imperfections, exclusion of the markets and asymmetric information. it identifies the regulatory functions, and assessed the powers of the Commission on Higher Education (CHED) and Professional Regulation Commission (PRC) pertaining to the entry of foreign professionals and service providers. The assessment includes comparison with the GATS prescription that domestic regulation should be reasonable, objective, transparent, not burdensome than necessary and should not be used as restriction on trade. Drawing from the need to address the problem of asymmetric information in the delivery of professional services for public interest and consumer protection, the study recommends various ways of refocusing the regulatory functions of CHED and PRC.
