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TRADE AND ENVIRONMENT
DIMENSIONS IN TIMOR-LESTE
Afonso A.J. Candido
Mario F.C Ximenes
SUB-REGIONAL WORKSHOP ON THE TRADE AND ENVIRONMENT DIMENTIONS
IN THE FOOD AND FOOD PROCESSING INDUSTRIES IN SOUTH –EAST AND
NORTH-EAST ASIA 26-27 JULY 2006, JAKARTA INDONESIA
TIMOR-LESTE: A country to be discovered
At the Crossroads of Southeast Asia and South Pacific
TIMOR-LESTE:
Area
TIMOR-LESTE:
in brief, based on 2004 data
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Geographic Size:
Population:
Currency:
GDP:
GDP Grwoth
GDP per capita:
Commercial Imports:
Exports:
Inflation rate:
15,007 km2.
925,000
USD
$339M
1.8%
$366
$113.5M
$7M
1.8%
TIMOR-LESTE:
GDP by Economic Sectors, 2004
Sectors
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Agriculture, Forestry & Fisheries
Public Administration and Defense
Civil Construction
Trade, Hotels & Restaurants
Transport & Communication
Finance, Rents & Services
Manufacturing
Mining
Electricity, Gas & Water
Other Services
TOTAL (*)
(*) Excludes Oil & Gas
(% GDP)
30%
23%
16%
9%
8%
7%
3%
1%
1%
1%
100%
TIMOR-LESTE:
Imports by Product Categories in 2004
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Categories
Petroleum Products
Machinery and Equipment
Vehicles and Spare Parts
Food Products & beverages
Construction Materials
Tabacco, etc.
Others
TOTAL
(% Import)
32.0%
15.0%
13.0%
10.6%
5.0%
1.9%
22.5%
100%
TIMOR-LESTE:
Predicted Areas Of Investment
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Oil and Gas
Mineral Resources
Agriculture and Agro-industry
Forestry
Fisheries
Tourism
Industry
Economic Infrastructure
TIMOR-LESTE:
Top 10 Import Market in 2004
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Markets
Indonesia
Australia
Singapore
Viet Nam
Italy
Portugal
Denamark
Thailand
Japan
China
(% Import)
53%
18%
13%
4.6%
1.8%
1.5%
1.4%
1,1%
1,1%
1.0%
TIMOR-LESTE:
Export by Product in 2004
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Category
Coffee
(% Export)
100%
Summary of Strenghts
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Natural Resources Endowment
Stable Macro Political-Economy
Low Rate of Inflation
Strong and Stable Currency
Government with Vision and Courage
Sound National Petroleum Management Plan
Suitable Climate for Agro-production and Tourism
Strong Public-Private Leadership
Rich Culture and Political History
Well Known Public Personalities
International Goodwill from Donors
Democratic Society with Broad Political Participation
Making Rapid Progress Toward Modern State Based on Rule of Law
Favorable Location in a Fast Growing Sub-region
Summary of Weaknesses
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Weak and inadequate infrastructure
Enduring negative legacy of recent history
Small domestic market and limited purchasing power
High degree of centralization of government services
High rate of unemployment
High labor costs compared to competing countries
Lack of skilled labor & small labor pool
Weak business legal and regulatory framework
Incipient judicial and weak court system
High transportation, communication and power costs
Incipient financial sector with high interest rates
Lack of business support services
TRADE LAWS
•Government Decree Number 7/2005
Of 27th of July 2005 on That created the Foreign Investment and Export
Promotion Institute
•Government Decree Nº 6/2005
27th of July
Procedural Regulation for External Investment
ENVIRONMENTAL LAWS FRAMEWORK (EXISTING)
1. Indonesian Law
(According to UNTAET Regulation nº 1/1999):
Ministry of Environment Decree on Guidelines on Coastal Water Quality
Standards (1988)
Regulation on the Control of Water Pollution (1990)
Regulation on Environmental Impact Assessment (1993)
Regulation on Hazardous and Toxic Waste Management (1994)
Environmental Management Act (1997)
Government Regulation on Marine Pollution and Degradation Control
(1999)
2. UNTAET Regulations (Environment)
Regulation Nº 17/2000 – Illegal Logging
Regulation Nº 19/2000 – Protected Places
3. UNTAET Guidelines (Div.Environment)
GUIDELINE#1 - Environmental Requirements for Development Proposals
GUIDELINE #2 - Mechanised Sand and Gravel Extraction from Rivers and Borrow
Pits
GUIDELINE #3 - Small Landfill Siting Guidelines (Environmental)
GUIDELINE #4 - Interim Tibar Landfill Operation Guidelines
GUIDELINE #5 - Prescribed Activities for Pollution
GUIDELINE #6 - Environmental Screening
GUIDELINE #7 - Storage of Fuel and Oil
GUIDELINE #8 - Ambient Noise from Stationary Sources
4. DSMA Guidelines (New)
GUIDELINE#1 – An overview of the Environmental Impact Assessment process and
guidelines
GUIDELINE #2 – Development proposals and Pollution License application
GUIDELINE #3 – Screening of development proposals
GUIDELINE #4 – Scoping and preparation and Terms of Reference
GUIDELINE #5 – Public engagement
GUIDELINE #6 – Preparation of Environmental Impact Statements
GUIDELINE #7 - Preparation of Environmental Management Plans
GUIDELINE #8 – Issuance of Pollution Licenses
GUIDELINE #9 – Issuance of enforcement notice and legal proceedings
GUIDELINE #10 – Standards and best management practices
5. Timor Leste Environmental Law (New, for approval)
Pollution Control
Environmental Impact Assessment
Environmental Issues
•Types of FOOD and FOOD PROCESSING Products
Coffee
Rice
Coconut Oil and sub-products
Aquaculture and Fish processing (future)
Environmental Issues
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Work in field and project face
Problems :
Water Pollution
Waste (Wet and Dry Processing)
Solution:
Environmental management (team, database)
Relation Trade and Environment
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Monitoring
 Policy
Conclusion
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Timorese environment law is still not in effect so creates difficulties for
control
Environmental prosecution not yet establish
Technical expertise in the country is still small
Equipment both for government entities and private sector is still scarce
BUT
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Environment (DNSMA) is producing new Timor-Leste laws and forming
guidelines with Prosecutor General
Environmental (DNSMA) team expanding to all districts with equipment
Food and food processing growing but still in time to control from the
beginning, reflected by investment proposals evaluation also with
environmental criteria.
Food and food processing part of Timor-Leste future but in sustainable
manner
Bayu-Undan:
US $1.65bn, the Largest Investment in Timor-Leste
OBRIGADO
Thank You