ITC and TradeInvest Convened a Session on Investment Treaty Obligations and Their Effective Management

The session was conducted as part of ITC’s ongoing project supporting the Government of Timor-Leste funded by the European Union and aimed to strengthen TradeInvest’s institutional understanding and management of investment treaty commitments effectively.

The session was held as Timor-Leste advances its regional and multilateral economic integration, including its signing of ASEAN Comprehensive Investment Agreement (ACIA) as well as any future trade and investment agreement that Timor-Leste may become a party. This milestone expands the country’s engagement in international investment frameworks and brings new obligations that require careful management.

During the opening session, TradeInvest underscored that effective management of investment treaty obligations is essential not only for honoring international commitments but also for supporting investment promotion and safeguarding national interests. As the agency responsible for investment and export promotion, TradeInvest emphasized the importance of ensuring coherent inter-agency coordination, sound implementation of treaty commitments, and effective management of potential investor claims and disputes.

The European Union Delegation to Timor-Leste, further, reaffirmed its continued partnership beyond accession milestones, emphasizing that effective implementation of regional and multilateral commitments is critical to unlocking the full benefits of membership. The EU Delegation further, highlighted that investment protection, when effectively managed, strengthens confidence, promotes sustainable partnerships, and contributes to inclusive economic development.

The discussions provided an overview of the scope and impact of investment protection treaties, their relevance to domestic law, the risk of investor claims, and the need for structured government processes to manage treaty negotiations, dispute prevention, and dispute management. It demands coordinated government processes, institutional preparedness, and proactive dispute prevention mechanisms to ensure that Timor-Leste safeguards its national policy space while maintaining credibility as an investment-friendly destination. 

The session concluded with an interactive discussion with TradeInvest officials. It highlighted that investment treaties apply across all branches and levels of government and across all sectors of the economy. It also emphasized that arbitration cases can be lengthy and costly, with global data indicating significant financial and administrative implications.

TradeInvest reaffirmed its commitment to working closely with the ITC and the European Union to ensure that Timor-Leste investment protection frameworks contribute to sustainable, inclusive, and long-term growth for Timor-Leste.