East Timor-Australia ties are at a crossroads

Significance

He urged Australia’s Prime Minister Anthony Albanese to help resolve a long-running impasse over whether gas from the Greater Sunrise gas field should be refined in East Timor or Australia. The IMF has warned that East Timor faces a “fiscal cliff” unless it secures new revenue streams, as active oil and gas fields are drying up.

Impacts

• China is unlikely to try to undermine Australia’s interests in the region, despite its development ambitions.
• The IMF and World Bank will continue to press East Timor to undertake structural reforms to create new private revenue streams.
• East Timor will hope to increase its international profile by gaining membership of ASEAN.