Anya Chung, Research Analyst
Taiwan ASEAN Studies Center, CIER
This brief examines the latest developments surrounding Timor-Leste’s accession to the World Trade Organization (WTO), with a focus on the country’s commitments and its strategies and vision following accession. Timor-Leste officially became the 166th WTO member in February 2024, after submitting its membership application in 2015. The WTO accession process, facilitated by special guidelines for Least Developed Countries (LDCs), involved multiple rounds of negotiations, culminating in the approval of the country’s commitments in goods and services. The accession entails significant tariff commitments, particularly for non-agricultural products such as electronics, with a phased reduction of tariffs over the next decade, ultimately aiming for zero tariffs by 2030 on many items owing to Timor-Leste's participation in Information Technology Agreement and its Expansion approved.
Additionally, Timor-Leste has committed to opening several service sectors, including part of telecommunications, finance, and tourism, although restrictions on foreign ownership remain in services supplied in support of the petroleum and mining industry. While WTO membership presents an opportunity to stimulate economic growth through deeper integration into the global trading system, it also presents challenges, including infrastructure deficiencies, the need for economic diversification, the development of a competitive private sector, and the transition to the digital trade. The Timor-Leste government has prioritized sectors such as agriculture, tourism, fishery, light industry, petroleum, and mining to attract private investment, while focusing on essential infrastructure development.
This brief also identifies potential opportunities for Taiwanese businesses, particularly in construction, information technology, and services, as Timor-Leste pursues economic diversification. With both Taiwan and Timor-Leste now WTO members, the enhanced trade relations and more equitable business environment are expected to benefit Taiwanese enterprises entering Timor-Leste’s emerging market.
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