The UK continues to show its commitment to support Timor-Leste’s accession into the ASEAN Economic Community (AEC)
Most recently, working together with Cowater International, the UK has provided in-depth technical assistance to the government of Timor-Leste on meeting ASEAN free trade agreement (FTA) requirements, including through a five-day workshop on developing preferential rules of origin (ROO) legislation. This has enabled Timor-Leste to make substantial progress towards implementing an origin certification scheme for ‘Made in Timor-Leste’ products to benefit from trade preferences, bringing them one step closer to AEC accession.
This UK’s flagship project supporting Timor-Leste’s accession into the ASEAN Economic Community was launched in December last year during the visit of the Foreign, Commonwealth and Development Office’s (FCDO) Chief Economist, Professor Adnan Khan. The project aims help the Timor-Leste government to implement a preferential rules of origin regime, including the development of a nationwide ‘country of origin’ certification scheme, which will enable Timor-based companies to benefit from regional and global trade agreements as the country looks to deepen its economic integration with its neighbours and beyond.
Rules of origin empower countries like Timor-Leste to fully leverage their comparative advantages and participate meaningfully in global value chains. By providing clarity and certainty regarding the origin of goods, these rules will enable Timor-Leste to access preferential trade agreements and tap into new markets. This, in turn, stimulates investment, creates jobs, and spurs economic diversification, laying the foundation for sustainable development.
British Deputy Ambassador to Indonesia and Timor-Leste Matthew Downing said:
I am delighted that this project has enabled Timor-Leste to make substantial progress towards developing a certificate of origin scheme, which in turn will help it access new markets and trade agreements. I look forward to continuing our support for Timor-Leste’s accession to ASEAN. This project is one part of our growing partnership with Timor-Leste, which will continue to deepen following the announcement that the UK will reopen its embassy in Dili.
UK Ambassador to ASEAN Sarah Tiffin said:
This project is a strong demonstration of our commitment as an ASEAN Dialogue Partner to support Timor-Leste throughout the process of its accession to ASEAN. It is good to see the progress Timor-Leste has made towards AEC membership. The UK stands with Timor-Leste and supports its journey towards an open, connected, and prosperous future.
Further Information
The UK is supporting Timor-Leste’s accession into the ASEAN Economic Community (AEC) through a project on rules of origin (ROO), including issuing and receiving preferential certificates of origin under ASEAN free trade agreements. Following virtual conversations with the Government of Timor-Leste and development partners in August and September 2023, we were able to narrow down our work last financial year to one specific project. The project is run through the UK’s FCDO (Foreign, Commonwealth & Development Office) Trade and Investment Advocacy Fund (TAF2+) and managed by Cowater International – a large international development company with previous experience advising Timor-Leste on their WTO accession.
Developing a nationwide certificate of origin scheme is a pre-requisite for accession to the ASEAN Trade in Goods Agreement (ATIGA), a core element of the AEC (ASEAN Economic Community). A certificate of origin is a document widely used in international trade transactions which confirms that the product listed has met certain criteria to be considered as originating in a particular country. Currently, Timor-Leste does not have a system for issuing these certificates, and there are existing barriers around calculating the percentage of content originating in Timor-Leste, as well as ascertaining quality. The absence of a certificate makes it very difficult for Timorese exporters, and for Timor-Leste more broadly, to integrate into global value chains. The Government of Timor-Leste has thus identified the UK as the single development partner to provide support in this area.