Government says Arbitration, Mediation and Conciliation Law good for business

On the 20^th of December the Council Ministers approved the draft law on Arbitration, Mediation and Conciliation with the aim of improving Timor-Leste’s business environment, promoting investment and boosting economic growth. The drafting and Government approval of this law, which is now to go before National Parliament, sees the achievement of yet another reform set out in the Government’s Guide for Economic Reform and Growth 2015-2017.

The law on Arbitration, Mediation and Conciliation creates alternative means of resolving trade disputes and is set to increase legal certainty and speed in resolving conflicts, in turn giving greater confidence to investors and business entities. The preamble of the legislation explains that the law is based on the ‘best practice’ and widely adopted Model International Arbitration Law [2006] recommended by the United Nations Commission on International Trade Law. Timor-Leste’s law extends its scope beyond international arbitration to include mediation and conciliation, taking into account the growing role of these methods of conflict-resolution as important avenues for both international and domestic business entities.

The Guide for Economic Reform and Growth 2015-2017 focuses on measures that will boost private investment, economic diversification and sustainable employment in Timor-Leste. Seven areas of reform and five priority sectors for growth are central to the guide. The recent granting of observer status to Timor-Leste by the World Trade Organization, the establishment of a new Customs Authority, the passing of a modern Customs Code based on international conventions and the adoption of the Arusha Declaration revised to promote integrity and transparency in the new Customs Authority are just some of many measures undertaken to attract investment and promote private sector activity.

Land and property regulation, economic infrastructure development, labour regulation and workforce development, business environment reform, fiscal reform, private investment system reform and private sector development and reform are all priority action areas for the Sixth Constitutional Government.

Spokesperson, Minister of State Agio Pereira, commended the new legislation saying “This law will give confidence to investors and business people, providing a way for commercial disputes to be resolved properly and promptly. The Government continues to focus on providing the very best business environment to attract investment, encourage diversification and energize the private sector development of Timor-Leste.”ENDS