The services sector, as shown in this article, is outpacing traditional industries, specifically in developing countries. With a possibility of forging an RP-US free trade agreement (FTA), two specific areas stand out as the biggest potential earners for the Philippines--the telecommunications and financial services sectors. However, there are certain problems to be addressed before a possible FTA with the US materializes. In the financial sector, it is hampered by strict provisions in the Philippine Constitution that limit the ownership of foreign entities in the country and the number of their representatives in the company. This is a contentious issue that would require further commitment from the Philippines' side. Undeniably, an FTA with the US is an opportunity for the Philippines but a firm commitment on the part of the government is needed so that the positive intent gets through as policies get implemented.