[{"bbox": [97, 153, 1135, 285], "category": "Text", "text": "population. Given the country's natural beauty and rich cultures, tourism is seen as a potential sector for future economic growth. However, Timor-Leste has a narrow export basket, as oil and gas exports constitute more than 90% of total exports. Timor-Leste only has a few non-oil products exported to other countries, such as coffee and vanilla. Main imports are capital goods which are required to rebuild the underdeveloped infrastructure of the country."}, {"bbox": [97, 298, 1135, 509], "category": "Text", "text": "To further develop its economy and reduce poverty in the country, the Government of Timor-Leste seeks to better integrate its economy into the rest of the Southeast Asian region and with the rest of the world. It has applied to join the Association of South-East Asian Nations (ASEAN) and the World Trade Organization (WTO). It is also negotiating with the European Union (EU) to join the EU-Pacific Economic Partnership Agreement (EPA). Integration into ASEAN, WTO accession and joining the EU-Pacific EPA are political and economic objectives set down by the Government. They were key topics discussed at the Political Dialogue between the EU and Timor-Leste in January 2021 and there was a full-day discussion on these issues during the Development Partners Meeting of July 2021."}, {"bbox": [97, 522, 1135, 681], "category": "Text", "text": "The European Union is a strong supporter of Timor-Leste's effort in regional integration and international trade, in support of a sustainable, green, inclusive economy and revenue generation. This effort goes in line with the Indo-Pacific Strategy that will deepen the engagement of the EU with partners in the Indo-Pacific, to respond to emerging dynamics that are affecting regional stability. The EU's approach is designed to foster a rules-based international order, a level playing field, as well as an open and fair environment for trade and investment, tackling climate change and supporting connectivity with the EU."}, {"bbox": [97, 694, 1135, 906], "category": "Text", "text": "In this sense, the Multiannual Indicative Programme (MIP 2021-2027) has by main objective to support economic development and poverty reduction. Under Priority Area 1 (Green and Sustainable Economic Recovery and Development), the EU and Timorese partners have identified that one of the actions under the Annual Action Plan (AAP 2022) is to assist Timor-Leste in preparations for its integration into ASEAN, particularly through the fulfilment of the ASEAN Economic Community (AEC) pillar requirements, for accession to the WTO, and in negotiations for membership of the Economic Partnership Agreement (EPA). Therefore, EU has allocated EUR 3 million to support regional integration and trade development of Timor-Leste, particularly the preparation to the ASEAN WTO and the EPA accession and implementation."}, {"bbox": [97, 918, 1135, 1578], "category": "Text", "text": "**ASEAN Membership Application** - Since before the restoration of independence in 2002, Timor-Leste has pursued the goal of becoming a member of ASEAN and formally applied for membership on 4 March 2011. However, after more than 11 years, the ASEAN's ten existing members are still evaluating Timor-Leste's membership application. In accordance with the \"consensus\" principle, all ten existing members must agree to Timorese membership. In particular, since ASEAN is moving forward its internal integration process under three ASEAN Communities (i.e. Political and Security Community, Economic Community, and Social and Cultural Community), Timor-Leste will have to be in a position to integrate those ASEAN Communities, each of which entails a number of commitments and agreed ambitions. For example, under the ASEAN Economic Community (AEC) pillar, the ASEAN leaders envisage a single market and production base, with free flow of goods, services, investment, capital and labour allowing for the development of production networks in the region and the enhancement of ASEAN's capacity in the global supply chain. As a result, the members have negotiated and concluded the ASEAN Trade in Goods Agreement (ATIGA), ASEAN Trade in Services Agreement (ATISA), ASEAN Comprehensive Investment Agreement (ACIA), and other sectoral and thematic regional agreements in the areas of sectoral mutual recognition, e-commerce, the movement of natural persons, etc. ASEAN member states are also working together to harmonise their trade rules and practices in the areas of customs, standards, conformity assessment, and mutual recognition, etc. As a new applicant country, Timor-Leste will have to sign on and/or negotiate its terms and conditions with other members to participate in those trade and investment agreements as well as the harmonisation of its trade rules and practices with other members in order to become a full member. The ASEAN membership application have been led and coordinated by the Ministry of Foreign Affairs and Cooperation (MFAC) in Timor-Leste. An assessment of Timor-Leste's readiness to accede to ASEAN with a particular reference to the economic pillar is to be completed by the ASEAN Secretariat and Member States in July 2022. The economic fact finding mission will propose a roadmap with clear orientations and actions for the ASEAN accession that the country needs to prepare and follow to be accepted as member. This action will be focused on the Economic pillar of the ASEAN membership requirements that are also linked with the negotiations with WTO and EPA."}, {"bbox": [1038, 1681, 1144, 1705], "category": "Page-footer", "text": "Page 4 of 22"}]