Timor - Australia Relations
The Australian people have a special affinity with Timor-Leste stretching back decades. Australia has a strong interest in a prosperous and stable Timor-Leste. Australia and Timor-Leste are close neighbours, with a shared history and strong people-to-people links. Since Timor-Leste's independence in 2002, Australia has been its largest development partner. The Australia–Timor-Leste Strategic Planning Agreement for Development articulates our shared commitment to achieving Timor-Leste’s development goals.
As a post-conflict state, Timor-Leste has made considerable progress in the past thirteen years. Timor-Leste has recently enjoyed a fast-growing economy and its longest period of stability since independence. Human development indicators continue to improve – but challenges remain. Revenues are narrowly based on oil and gas and the rate of population growth is high.
Australia was in the front-line of support for Timor-Leste's transition to independence and led the multinational INTERFET force which restored security in Timor-Leste following the 1999 post-independence ballot violence. Australia also led the 2006-2013 International Stabilisation Force (ISF), comprised of Australian and New Zealand Defence Force members. The ISF provided security back-up to the UN Integrated Mission in Timor-Leste (UNMIT) and remained in Timor-Leste at the invitation of the Timorese Government. Australia's defence and police engagement with Timor-Leste continue through Australian Defence Cooperation Program and Australian Federal Police’s Timor-Leste Police Development Program.
Australia is committed to being an effective, responsive and long-term partner in Timor-Leste’s development. By helping to improve livelihoods, enhance human development, and strengthen governance and institutions, we will contribute to our shared goal of a prosperous and secure nation, enabling the people of Timor-Leste to overcome poverty. Across all programs, we will focus on improving nutrition, empowering women and girls and supporting disability-inclusive development.
Australia is a significant partner of Timor-Leste’s in the oil and gas industry. Existing treaty arrangements provide 90 per cent of petroleum in the Joint Petroleum Development Area (JPDA) goes to Timor-Leste. Revenue of the yet to be developed Greater Sunrise field, 80 per cent of which is outside the JPDA, is split 50-50. In 2014-15, total merchandise trade between Australia and Timor-Leste was valued at $37 million. Australian exports to Timor-Leste were valued at $34.5 million with major items including passenger motor vehicles and vehicle parts. Imports from Timor-Leste were valued at $2.6 million, with over half consisting of coffee. Timor-Leste has had preferential duty free access and quota free access to the Australian market since July 2003.
Australia remains Timor-Leste’s largest development partner. Australia’s aid program aligns with Timor-Leste’s own development priorities as reflected in its Strategic Development Plan 2011-2030. Aid is becoming a smaller proportion of Timor-Leste’s national budget – in 2015 Official Development Assistance accounted for less than six per cent of the budget compared to 75 per cent in 2002. Australia responded by focusing on assisting Timor-Leste to use its own resources to develop the economy and alleviate poverty. Australia will continue to support a range of sectors that address constraints to Timor-Leste’s critical development needs.
Australia will intensify its focus on improving nutrition, particularly for women and children. Australia’s multi-sector response included agriculture, health, food security and water and sanitation; as well as discrete support for the President’s Annual Nutrition Awards. Following the release of the 2015-16 budget, Australia scaled back the number of Australia Awards recipients from 25 to 15 in the 2016 academic year and focused on assisting Timor-Leste to maximise its USD31.2 million human capital development fund. Australia’s budget support to the Ministry of Finance will reduce by 50 per cent, although advisory support will continue.
The people of Australia and Timor-Leste share deep personal connections forged through shared experiences during the Second World War, the Timorese journey to independence, and the growth of the Timorese diaspora in Australia. Many Australians remain actively connected to Timor-Leste, including through the Australia-Timor-Leste friendship group network, and community and church groups.
Through the Australia Awards initiative, Australia provides scholarships for Timorese students, researchers and professionals to study in Australia. The Awards are an important part of the aid program in Timor-Leste and aim to: develop capacity and leadership skills so that individuals can contribute to development in Timor-Leste, and develop personal connections with Australia. Timorese nationals are eligible for long-term Awards (Australia Awards Scholarships and the Australia Awards Leadership Program) and short-term Awards (Australia Awards Fellowships).
The Australian Volunteers for International Development (AVID) program promotes economic growth and poverty reduction in the Indo-Pacific region by assisting host organisations to deliver effective and sustainable development outcomes. Australia’s overseas volunteer program, Australian Volunteers for International Development, has a one-stop entry point to Australian volunteering.
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