East-Timor: Trade Profile
Timor-Leste is a country open to foreign trade, which represented 100% of its GDP in 2021 (World Bank, 2023) a decrease of 63% since 2020. Crude petroleum (70.7%) and Petroleum Gas (19.8%) represented more than 90.5% of total exports in 2021 (OEC, 2023). The main non-oil export product is limited to coffee (5.51%), which does not compensate for the bill of food imports. Imports are led by Refined Petroleum (14% of all imports in 2021), Coal briquettes (4.97%), rice (4,7%), Iron structures (3.12%) and cars with 2.67% (OEC, 2023).
According to 2023 figures from OEC, the country's principal import sources in 2021 were China (32.1%), Indonesia (30.6% of total imports), Singapore (12.8%) and Australia (9.2%). Principal export destinations were China (33.5%), Singapore (30.9%), Japan (20.1%) and Malaysia (7.88%). The factors that limit trade include poor infrastructure, weak development of its financial sector, high interest rates in private banks and the lack of a skilled labour force. The country has very few trade barriers and customs duties are low (the average applied tariff rate is 2.5%). Timor-Leste is a member of the IMF, the World Bank and the Asian Developmental Bank, and is currently pursuing negotiations to become a member of the ASEAN.
Timor-Leste has a structural trade deficit. Imports (excluding services) reached 873 million USD in 2021, while exports (in sharp increase from the previous year) were still only 616 million USD, resulting in a reduced trade balance of 257 million USD in 2021 (WTO, World Bank, 2023).
| Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Imports of Goods (million USD) | 554 | 520 | 591 | 625 | 873 |
| Exports of Goods (million USD) | 23 | 45 | 154 | 264 | 616 |
| Imports of Services (million USD) | 316 | 344 | 320 | 209 | 391 |
| Exports of Services (million USD) | 77 | 82 | 76 | 33 | 28 |
| Imports of Goods and Services (Annual % Change) | -9 | 3 | 6 | 11 | 10 |
| Exports of Goods and Services (Annual % Change) | -39 | 17 | 1,051 | 207 | 8 |
| Trade Balance (million USD) | -664 | -589 | -566 | -510 | 1,488 |
| Foreign Trade (in % of GDP) | 58 | 64 | 71 | 85 | 100 |
| Imports of Goods and Services (in % of GDP) | 56 | 62 | 49 | 48 | 36 |
| Exports of Goods and Services (in % of GDP) | 2 | 3 | 21 | 37 | 64 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
To go further, check out our service Import Export Flows
| 0.1 bn USD of services exported in 2018 | |
|---|---|
| 79.76% | |
| Personal travelPersonal travel | 64.17% |
| Business travelBusiness travel | 15.59% |
| OtherOther | 15.59% |
| 16.10% | |
| 2.24% | |
| 1.21% | |
| Telecommunications servicesTelecommunications services | 1.21% |
| 0.70% | |
| 0.5 bn USD of services imported in 2018 | |
|---|---|
| 28.24% | |
| Construction in the compiling...Construction in the compiling economy | 28.24% |
| 25.76% | |
| Personal travelPersonal travel | 24.69% |
| Business travelBusiness travel | 1.07% |
| 23.03% | |
| 15.07% | |
| Sea transportSea transport | 11.44% |
| FreightFreight | 11.44% |
| Air transportAir transport | 3.63% |
| PassengerPassenger | 3.52% |
| FreightFreight | 0.10% |
| 3.94% | |
| Freight insuranceFreight insurance | 3.94% |
| 1.94% | |
| 1.44% | |
| Miscellaneous business,...Miscellaneous business, professional, and technical services | 1.44% |
| 0.33% | |
| Computer servicesComputer services | 0.33% |
| 0.25% | |
| Telecommunications servicesTelecommunications services | 0.25% |
| 0.01% | |
Source: United Nations Statistics Division, Latest Available Data
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Latest Update: September 2023
