Meeting of the Council of Ministers on 25th September 2025
Presidency of the Council of Ministers
Spokesperson of the Government of Timor-Leste
Ninth Constitutional Government
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Press Release
Meeting of the Council of Ministers on 25th September 2025
The Council of Ministers met at the Government Palace in Dili and approved four draft Resolution Proposals from the National Parliament, presented by the Vice-Minister for ASEAN Affairs, Milena Maria da Costa Rangel, as part of fulfilling the commitments made in the Roadmap for Timor-Leste's full membership of ASEAN, for the approval of membership of the following instruments:
1. ASEAN Agreement on Trade in Goods (ATIGA), the First Amending Protocol to the ATIGA, the Protocol on Trade in Rice and Sugar, and its Addendum. The ATIGA, signed in Thailand in 2009, constitutes the main legal instrument regulating the liberalization and facilitation of trade in goods among ASEAN Member States, through the progressive elimination of tariff and non-tariff barriers, the strengthening of rules of origin, the harmonization of customs procedures, and the promotion of an integrated regional market. The First Amending Protocol, signed in Malaysia in 2015, introduced technical updates and procedural improvements, particularly in the area of rules of origin and certification of origin mechanisms, promoting greater efficiency and transparency in intra-ASEAN trade flows. The Protocol on Trade in Rice and Sugar, signed in the Philippines in 2007, and its Addendum, signed in 2009 in Thailand, grant special and differentiated treatment to these sensitive products, through specific commitments between Member States, safeguarding national interests in terms of food security and protection of the agricultural sector.
Adherence to these instruments, in addition to fulfilling a requirement of the Roadmap for ASEAN Accession in the Economic Pillar, will allow Timor-Leste to benefit from regional integration, attract investment, diversify its economy and strengthen the competitiveness of the national productive sector.
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2. ASEAN Framework Agreement on Services (AFAS), its Protocol, and ASEAN Agreement on Trade in Services (ATISA). The AFAS, signed in Thailand in 1995, constitutes ASEAN's main legal instrument for the progressive liberalization of trade in services among member states through the elimination of restrictions, the strengthening of regional cooperation, and the gradual opening of economic sectors. The 2003 Protocol introduced mechanisms that allow two or more member states to advance more quickly in the liberalization of specific sectors.
In 2019, ASEAN Member States signed the ATISA, which progressively replaced the AFAS regime, introducing the negative list approach, expanding regulatory disciplines, and ensuring greater predictability and transparency for trade in services. The ATISA provides for differentiated transition periods, allowing Timor-Leste to begin adaptation in 2026 and fully implement the negative list in 2036, simultaneously with Cambodia, Laos, Myanmar, and Vietnam.
Adherence to these instruments, in addition to fulfilling a requirement of the Roadmap for ASEAN Accession in the Economic Pillar, will allow Timor-Leste to fully integrate into the regional services regime, strengthen competitiveness and legal certainty, attract investment, diversify the economy and promote job creation, in line with sustainable development objectives.
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3. ASEAN Agreement on the Movement of Natural Persons (MNP). Signed in 2012 in Cambodia, this Agreement aims to facilitate the temporary presence of service providers—such as business visitors, intra-corporate transferees, and contractual service providers—between ASEAN Member States, in accordance with the Framework Agreement on Services (AFAS).
The MNP establishes transparent and predictable immigration procedures, respecting the sovereignty of Member States in protecting borders and safeguarding the national labor market. It is important to emphasize that it does not apply to unskilled workers and does not confer rights of permanent residence, naturalization, or access to permanent employment, thus ensuring that each State maintains autonomy over its labor and migration policies.
Adherence to this instrument, in addition to fulfilling a requirement of the Roadmap for ASEAN Accession in the Economic Pillar, will ensure the safe and regulated mobility of Timorese service providers in the region's markets, while simultaneously ensuring the protection of the national labor market and the harmonization of migration policies regarding the temporary entry of professionals from other Member States, based on principles of transparency, predictability and non-discrimination.
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4. ASEAN Comprehensive Investment Agreement (ACIA) and its four Protocols. Adopted in 2009 in Thailand and in force since 2012, the ACIA constitutes ASEAN's main legal framework for investment liberalization, facilitation, promotion, and protection. The Agreement was updated by four Protocols, adopted between 2014 and 2020, which clarify reservations and commitments, redefine legal concepts, adjust performance rules, and reinforce the principle of non-discrimination.
Under the ACIA, each Member State must submit a Reserve List, identifying strategic sectors to be safeguarded. Timor-Leste submitted its national List, which protects sensitive areas such as real estate, strategic agricultural, fishing, mining, and industrial sectors, as well as support measures for micro, small, and medium-sized enterprises, ensuring a balance between openness to investment and the defense of national interests.
Timor-Leste's accession to ACIA and its four Protocols, in addition to being a requirement set out in the Roadmap for ASEAN Accession in the Economic Pillar, will strengthen the country's legal certainty, predictability and attractiveness for foreign direct investment, while simultaneously promoting sustainable development and economic diversification.
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The Council of Ministers also approved eight draft Government Resolutions, also presented by Vice-Minister Milena Maria da Costa Rangel, as part of fulfilling the commitments made in the Roadmap for Timor-Leste's full membership of ASEAN, for membership of:
1. Revised Memorandum of Understanding on the Establishment of the ASEAN Foundation and its Amending Protocols. Signed in Thailand in 2000, this Memorandum and its subsequent Protocols establish the legal and institutional foundations of the ASEAN Foundation, which constitutes an essential platform for strengthening regional identity, promoting active citizenship, building institutional capacity, and reducing development disparities among Member States.
Timor-Leste's accession to this instrument, in addition to constituting a requirement of the ASEAN Accession Roadmap under the Political and Security Pillar, will enable full integration into the Foundation's activities, benefiting from training, education, youth, and social inclusion programs. Timor-Leste's involvement will strengthen regional cooperation, ensuring opportunities for young people, women, and vulnerable groups, in line with the sustainable development goals and the Program of the 9th Constitutional Government.
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2. Ministerial Understanding on ASEAN Cooperation in Finance and its Amending Protocol. Adopted in 1997 and amended in 2000, this instrument establishes the basis for collaboration between the Ministries of Finance of ASEAN Member States in the field of public finance, including cooperation on taxation, capital market development, public financial management, and macroeconomic stability.
Timor-Leste's accession to the Understanding and its Protocol will enable participation in dialogue, consultation, and technical cooperation mechanisms, promoting the progressive alignment of national fiscal and financial policies with regional standards. This is a political and strategic instrument that does not impose binding legal obligations or mandatory financial commitments but rather strengthens the country's institutional credibility and its integration into the ASEAN regulatory framework.
With this decision, Timor-Leste meets another requirement of the Roadmap for Full ASEAN Membership in the Economic Pillar, strengthening transparency, predictability and the confidence of regional and international partners in the management of its public finances.
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3. Understanding Criteria for Classification in the ASEAN Harmonized Tariff Nomenclature (AHTN). Adopted in Malaysia in 2003, this instrument establishes common technical criteria for the classification of goods in the AHTN, particularly in situations involving modification or creation of tariff subcodes, ensuring uniformity, predictability, and coordination in the application of the tariff nomenclature among Member States.
Timor-Leste's accession to this Understanding, as provided for in the Roadmap for Full Membership of ASEAN, will allow full participation in the technical deliberations of the ASEAN Customs Directors-General, ensure the coherence of the national customs tariff with regional criteria and reinforce transparency and predictability in trade.
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4. Agreement on the Recognition of Commercial Vehicle Inspection Certificates for Goods Vehicles and Public Service Vehicles Issued by ASEAN Member States. Concluded in Singapore in 1998, this Agreement establishes the mutual recognition of commercial vehicle inspection certificates issued by the competent authorities of ASEAN Member States, with the exception of vehicles carrying dangerous goods.
Timor-Leste's accession will facilitate the cross-border movement of commercial vehicles, eliminate duplication of road inspections, harmonize technical and administrative procedures, and enhance road safety, promoting greater trust between the region's traffic and transport authorities.
This instrument integrates Timor-Leste into regional transport and logistics chains, will reduce costs and operating times for national operators, as well as contribute to national economic competitiveness, in accordance with the objectives defined in the Roadmap for ASEAN Accession.
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5. Agreement on the Recognition of Domestic Driving Licenses Issued by ASEAN Countries. Concluded in Malaysia in 1985, this Agreement establishes the mutual recognition of driving licenses issued by ASEAN Member States, apart from temporary, provisional or learner's licenses.
Timor-Leste's accession will allow citizens with driving licenses issued in ASEAN countries to temporarily drive within the country with their valid license, and Timorese citizens will benefit from the same regime in other Member States. The Agreement simplifies administrative procedures, reduces barriers for visitors, facilitates mobility, and promotes regional socioeconomic integration.
With this decision, Timor-Leste harmonizes its legal framework with ASEAN road traffic regulations, strengthens mutual trust between the region's traffic authorities, and creates conditions to boost tourism and passenger mobility within the region.
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6. Memorandum of Understanding on the Association of Southeast Asian Nations' Air Services Engagement with Dialogue Partners. Adopted in 2010, this Memorandum establishes the principles and conditions for the coordinated participation of ASEAN Member States in air services agreements with third states or international organizations, ensuring ASEAN's centrality and regional coherence.
The instrument stipulates that any Member State concluding air services agreements with Dialogue Partners must grant other ASEAN States treatment no less favorable than that granted to the external partner, strengthening the coherence of the regional civil aviation legal framework. Accession is conditional upon prior ratification of ASEAN air transport agreements (MAAS, MAFLPAS, and MAFLAFS).
By adhering to this Memorandum, Timor-Leste fulfills a fundamental requirement of the Roadmap for Full ASEAN Membership in the Economic Pillar, consolidating its participation in the ASEAN Single Aviation Market and creating conditions to strengthen connectivity, attract investment, boost tourism and contribute to the country's sustainable economic growth.
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7. Agreement on the Establishment of the ASEAN Energy Centre (ACE) and Amending Protocol. Adopted in Manila in 1998, this Agreement established the ASEAN Energy Centre, headquartered in Jakarta, to coordinate, facilitate, and promote national and joint energy activities, support the implementation of the ASEAN Agreement on Energy Cooperation (1986) and the ASEAN Plan of Action for Energy Cooperation (APAEC), and enhance regional energy security.
The 2013 Amendment Protocol introduced governance and management improvements, particularly in the selection of the Executive Director, the management of the ACE Fund and the updating of dispute resolution mechanisms, aligning the Center's operations with regional best practices.
Timor-Leste's accession to ACE will allow the country to fully integrate into ASEAN's energy cooperation mechanisms, benefiting from access to data, studies, knowledge networks and technical training programs, as well as investment and cooperation opportunities in energy efficiency and the transition to clean energy. This accession also reinforces national energy security and resilience, in accordance with the objectives of the Roadmap for ASEAN Accession in the Economic Pillar and with the priorities of the Program of the 9th Constitutional Government.
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8. Agreement on the Establishment of the ASEAN Coordination Center for Animal Health and Zoonoses (ACCAHZ). Adopted in 2020, this Agreement creates a permanent technical and institutional platform aimed at strengthening regional cooperation in the prevention, control and eradication of transboundary animal diseases and zoonoses, in line with the integrated “One Health” approach, which articulates the dimensions of animal, human and environmental health.
The Center provides technical assistance to Member States, coordinates research activities, promotes the harmonization of health policies, supports the development of early warning systems and strengthens national and regional capacities for epidemiological surveillance and response to health emergencies.
Timor-Leste's accession to ACCAHZ, in addition to being a requirement set out in the Roadmap for Full Accession to ASEAN in the Sociocultural Pillar, represents a strategic step to strengthen the resilience of the national animal health and public health system, consolidate food security and contribute to the stability of the agricultural sector. By integrating this regional mechanism, the country will also benefit from technical assistance, training, technology transfer and access to information networks and scientific cooperation.
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The Council of Ministers approved the draft Decree-Law, presented by the Minister of Finance, Santina José Rodrigues F. Viegas Cardoso, for the regulation of Law No. 3/2025, of April 23, on the Framework of the General State Budget and Public Financial Management.
This diploma establishes, in detail and operationally, the rules and procedures that guarantee the full implementation of the new Framework Law, reinforcing the principles of transparency, budgetary discipline, accountability and fiscal sustainability. This is a decisive step towards ensuring that public resources are managed more efficiently and for the direct benefit of the population.
The Decree-Law introduces a comprehensive set of standards that organize and structure the entire budget cycle, from strategic and participatory planning to execution, control and accountability. Among the main innovations are the regulation of the Budget Strategy Declaration, the definition of expenditure ceilings, the strengthening of the role of public consultations and Budget Days, and the adoption of a dual accounting system – budgetary and financial – to promote greater rigor and reliability in the State's financial information. The diploma also regulates the financial autonomy of Indirect State Administration entities, the procedures for executing expenditure and revenue, and establishes clear rules for budget changes and use of the contingency reserve.
With this regulation, the 9th Constitutional Government reaffirms its commitment to responsible governance, oriented towards results and sustainable development. The new legal framework strengthens control and accountability mechanisms, promotes citizen participation in the budget process and creates the institutional and technical conditions necessary for modern and effective public management, in line with best international practices.
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Lastly, the draft Government Resolution was approved, also presented by the Minister of Finance, Santina José Rodrigues F. Viegas Cardoso, for the accession of the Democratic Republic of Timor-Leste to the Open Government Partnership – OGP).
The Open Government Partnership is an international initiative, which brings together more than 75 countries and hundreds of local government entities, aimed at promoting transparency, accountability, inclusion and participation of citizens in governance practices, fostering more resilient and prosperous societies. By joining this initiative, Timor-Leste is committed to complying with the international requirements, standards and good practices established by the Partnership, reinforcing transparency, the fight against corruption and the active participation of civil society and other partners in the public decision-making process.
The Resolution determines that the Ministry of Finance takes the lead in the process of joining and implementing the Open Government Partnership, being responsible for formally submitting the required documents, establishing a multisectoral dialogue mechanism and coordinating the preparation of the Open Government National Action Plan, with the involvement of ministerial lines and relevant partners. The Ministry of Finance must present to the Council of Ministers, within 90 days from the publication of this resolution, a preliminary report on the status of accession and the subsequent steps for the formulation of the Action Plan. END
