BANGKOK (The Nation/Asia News Network): Thailand stands to benefit from exports and investments once Timor-Leste joins the Association of South-East Asian Nations as the 11th member after Asean leaders endorsed the roadmap for welcoming the new member country.
Oramon Supthaweetham, director-general of the Trade Negotiation Department, said the roadmap for Timor-Leste to receive full membership was endorsed during the 42nd Asean Leaders Summit in Labuan Bajo, East Nusa Tenggara, Indonesia, on June 10.
The roadmap specifies three working plans on politics and security, economy, and social and cultural ties that Timor-Leste has to carry out before it will be granted full Asean membership, Oramon said.
In November 2022, Asean leaders agreed to grant observer status to Timor-Leste, allowing the country to participate in all Asean meetings, including summits.
Timor-Leste applied for full membership in 2011, but has not yet met all of the required criteria.
In terms of economic criteria, Timor-Leste is required to ratify 66 economic cooperation contracts among Asean members, Oramon added.
The 66 agreements that Timor-Leste must first sign include Asean Trade in Goods Agreement, Asean Trade in Services Agreement, and Asean Comprehensive Investment Agreement.
After receiving full membership, Timor-Leste can later sign other agreements within two years and it must also join free trade agreements with other Asean nations within five years, Oramon said.
With the 11th member, the Asean group will become a larger manufacturing base and Thai exports will have duty-free access to Timor-Leste, she said, adding that Thai companies will also be able to invest in the country’s infrastructure.
With the new member, Asean's supply chain will expand and the size of its market size will rise to 673.8 million consumers.
Although Timor-Leste is a small market, its growing economy requires numerous agricultural products from Thailand, including rice, canned and processed seafood, canned fruits and rubber products, as well as drinks.
Oramon said Timor-Leste requires a great amount of investment in infrastructure, including roads and buildings.
Thai businesses will have an opportunity to invest in growing the country’s growing tourism businesses, she added.
Its Growing Tourism to 2030 policy aims to increase the number of foreign tourists to 200,000 a year by 2030.
Thai investors can invest in restaurants, spa, massage and auto parts businesses in Timor-Leste, she said.
Thailand and Timor-Leste have had diplomatic and trading ties for over 21 years.
Timor-Leste is the 129th trading partner of Thailand. Bilateral trade between the countries totalled US$52.50 million last year, up 349.31% from 2021.
In 2022, Thai exports to Timor-Leste totalled $14.87 million last year, while imports from Timor-Leste totalled $37.63 million.
Timor-Leste gained independence on May 20, 2002, after more than two decades of occupation by Indonesia when it was called East Timor.
The country had been a Portuguese colony until 1975, when it declared independence. Nine days after independence, Indonesia invaded East Timor and annexed its territory.
