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Intervention of the General Coordinator of MCAE, regarding the (Public Consultation on the Draft National Compliance Law)

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Intervention by the General Coordinator of the Office of the Coordinating Minister for Economic Affairs (MCAE) regarding the Public Consultation on the National Compliance Law, held at the Dili Convention Center (CCD), Mercado Lama area, on March 2, 2025

Today, I stand here to talk about an issue that affects each and every one of us — as consumers, business owners, and government officials. This matter is of great importance: the compliance law, which aims to ensure the quality of goods and services in our nation, Timor-Leste. This law is essential for our country because it guarantees adherence to national and international standards, promotes economic growth, facilitates trade, and builds investor trust and investment confidence. That is why we expect this law to cover and strengthen several future aspects.

It will boost our trade and Timor-Leste’s access to markets. As we have discussed on several occasions, Timor-Leste’s accession to the World Trade Organization (WTO) presents a major challenge for integration into both current and future markets. Additionally, our process of becoming a member of ASEAN also requires compliance with international and regional trade rules.

The compliance law will also help ensure that Timor-Leste’s goods and services meet global standards and reduce technical trade barriers.

This law is important for increasing investment and business confidence. Investors and businesses seek legal certainty and a regulatory environment that attracts them. The compliance law, along with other related laws such as the insolvency law (approved by the Council of Ministers and awaiting ratification by the National Parliament), and the intellectual property law (already approved by the Ministry of Commerce and Industry), will help create a “level playing field.” This allows Timor-Leste to play its role in markets at the levels we aim for and to attract Foreign Direct Investment (FDI), which we call MTI.

This law will also protect consumer rights and our environment. We expect the law to ensure that the products we have meet quality and safety standards and protect consumers from harmful goods and services. Related laws — such as veterinary medicine and environmental protection — help prevent ecological damage and promote sustainable development. Through this compliance law, we also expect to strengthen governance and the state itself. It will help reduce corruption and eliminate arbitrary decisions by establishing a clear legal framework. The decree-law on administrative infractions ensures that companies and individuals follow regulations, thereby strengthening good governance.

I also believe that parts of this law will support economic diversification and compliance with manufacturing standards, enhancing local industries, especially micro, small, and medium enterprises (MSMEs). This will help Timor-Leste move away from dependence on extractive industries. Moreover, the compliance law in sectors like fisheries, agriculture, and renewable energy aligns with the country’s “blue economy” and “green economy” strategies.

The compliance law is expected to facilitate customs and trade regulations. The law on import licensing and export promotion, already approved by the Council of Ministers, and future regulations will ensure that goods move efficiently across borders and reduce unnecessary trade challenges. The implementation of national regulations will help Timor-Leste benefit from regional and global trade agreements.

Finally, the MCAE hopes that the compliance law will help raise Timor-Leste’s reputation internationally and align the country with levels and standards used in the global market. As a future WTO member, Timor-Leste must comply with obligations related to trade, including WTO agreements on subsidies and fisheries, as well as intellectual property protection. The compliance law is expected to help the government align these matters with clarity and dignity, reinforcing national credibility in international trade and economic diplomacy.

I also hope that IQTL (Institute for Quality and Technical Regulation) will take responsibility for developing and implementing quality standards for products and services in our country. Through inspections and testing, it will ensure that companies follow the rules and provide certification for those that meet quality standards, allowing them to export their products with confidence. It will also educate businesses and consumers about the importance of quality control.

Without an institution like this, we will not have the means to ensure that what we produce and sell in Timor-Leste meets national and international standards. Therefore, it is extremely important to support and strengthen this institution to help our products grow and succeed.

Timor-Leste has great potential to succeed in global markets, but this success depends on our commitment to quality — to ensure that all goods and services in our nation meet high standards. We can then build a strong economy that benefits everyone. Businesses, government agencies, and consumers all share the responsibility to support and respect our compliance law.

The compliance law is vital for economic stability, trade facilitation, growth and investment, consumer protection, and environmental sustainability. It is designed to position Timor-Leste as a trusted and credible partner in global trade and regional integration.

Let us work together to support quality in every aspect of our economy. Let us make Timor-Leste a name that is trusted in international trade, and let us ensure that our people always have access to better, high-quality goods and services.

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