GENEVA, Switzerland – Timor-Leste officially became the 166th member of the World Trade Organization (WTO) on August 30, marking a significant milestone after over seven years of negotiations. With this accession, Timor-Leste is recognized as the 11th least-developed country (LDC) to join the WTO since its inception in 1995. Additionally, the nation has expressed its formal acceptance of the WTO Agreement on Fisheries Subsidies.
During a General Council meeting on July 22, 2024, Deputy Prime Minister Francisco Kalbuadi Lay presented the instrument of acceptance of Timor-Leste’s Protocol of Accession to WTO Director-General Ngozi Okonjo-Iweala.
In a strategic move, the formal deposit of the Protocol was dated July 31, allowing the 30-day countdown to membership to conclude on August 30.
WTO Director-General Ngozi Okonjo-Iweala stated:
“I am thrilled to welcome Timor-Leste as a new member of the WTO, shortly after the accession of Comoros,” which joined on August 21, 2024. “This historic achievement coincides with the 25th anniversary of Timor-Leste’s 1999 independence referendum, and WTO membership is poised to enhance the nation’s economic diversification efforts, as well as supporting its ambitions to join ASEAN (the Association of Southeast Asian Nations).”
Furthermore, the Director-General emphasized:
“The addition of these two members is a testament to the WTO’s core values of openness, transparency, good governance, and the rule of law. The Secretariat is committed to assisting both new LDC members on their journeys to maximize the benefits of their accession.”
Timor-Leste’s accession was formally approved during a special ceremony at the 13th Ministerial Conference (MC13) held in Abu Dhabi on February 26.
The journey to WTO membership for Timor-Leste began with its application on April 7, 2015, followed by the establishment of the Working Party on December 7, 2016. Negotiations concluded on January 11, 2024, and the National Parliament of Timor-Leste endorsed the Protocol of Accession on June 3, 2024.
On July 10, 2024, Timor-Leste also adopted the Fisheries Subsidies Agreement and submitted its instrument of acceptance alongside its Accession Protocol, bringing the total acceptances of the WTO Agreement on Fisheries Subsidies to 83.
Fisheries Subsidies Agreement
Unanimously adopted at the WTO’s 12th Ministerial Conference (MC12) in June 2022, the Agreement on Fisheries Subsidies introduces crucial multilateral rules designed to reduce detrimental subsidies, which significantly contribute to the global depletion of fish stocks.
For the Agreement to take effect, two-thirds of WTO members must deposit their acceptance instruments. The Agreement addresses the needs of developing countries and LDCs, and establishes a Fund to provide technical assistance and capacity-building for its implementation.
The Agreement forbids subsidies related to illegal, unreported, and unregulated (IUU) fishing, as well as for overfished stocks and fishing on unregulated high seas. Furthermore, members have agreed to continue negotiations on outstanding issues, aiming to adopt additional provisions to strengthen the Agreement’s regulations.
