Proposal for a COUNCIL DECISION establishing the position to be taken on behalf of the European Union in the World Trade Organization’s 13th Ministerial Conference on the accession of the Democratic Republic of Timor-Leste to the WTO
Date: 2023-12-11
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: East Timor, World Trade Organisation, accession to an agreement, enlargement of an international organisation, ministerial meeting, multilateral agreement, trade cooperation, trade relations

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   EUROPEAN COMMISSION  Brussels, 11.12.2023  COM(2023) 776 final 2023/0458 (NLE)  Proposal for a COUNCIL DECISION establishing the position to be taken on behalf of the European Union in the World Trade Organization’s 13th Ministerial Conference on the accession of the Democratic Republic of Timor-Leste to the WTO  
 
EXPLANATORY MEMORANDUM 

1. 

SUBJECT MATTER OF THE PROPOSAL 

This  proposal  concerns  the  Council  decision  establishing  the  position  to  be  taken  on  the 
Union's behalf in the 13th Ministerial Conference of the World Trade Organization (‘WTO’) 
in connection with the envisaged adoption of a decision on the accession of the  Democratic 
Republic of Timor-Leste to the WTO.  

2. 

2.1. 

CONTEXT OF THE PROPOSAL 

The  Agreement  Establishing 
Agreement’)  

the  World  Trade  Organization 

(‘WTO 

The Agreement Establishing the World Trade Organization (‘the WTO Agreement’) aims to 
achieve the objectives mentioned in  the preamble to  the Agreement. The  agreement  entered 
into force on 1 January 1995. 
The European Union (‘EU’) is a party to the Agreement.1 All 27 EU Member States are also 
parties to the Agreement. The WTO may take decisions in accordance with the procedures set 
out in the WTO Agreement. 

2.2. 

The Ministerial Conference of the World Trade Organization 

The  Ministerial  Conference  is  the  highest  decision-making  body  of  the  WTO  and  meets  at 
least once every two years. As a matter of law and practice, decisions are taken by consensus.  

The  next  meeting  of  the  Ministerial  Conference  will  take  place  in  Abu  Dhabi,  United  Arab 
Emirates on 26-29 February 2024.  

2.3. 

The envisaged act during the WTO Ministerial Conference and reason for and 
objective of the proposal 

During  the  WTO’s  13th  Ministerial  Conference  (‘MC13’)  a  decision  may  be  adopted 
regarding the WTO Accession of the Democratic Republic of Timor-Leste (Timor-Leste). 

Members of the WTO and Timor-Leste have reached the concluding stage of an agreement on 
the terms for the accession of Timor-Leste to the organization. This comes after several years 
of negotiations, which began when Timor-Leste submitted its application to join the WTO in 
2016.  

In submitting the terms of Accession of Timor-Leste to the WTO for approval by the Council, 
the Commission  considers  these terms  as  representing a balanced  and ambitious  package of 
market  opening  commitments,  which  will  bring  substantial  benefits  to  Timor-Leste  and  its 
WTO  trading  partners  alike.  Timor-Leste’s  request  for  accession  has  been  examined  in 
accordance with the guidelines set out by the WTO General Council on the accession of least-
developed countries (LDCs). 

2.4. 

Consistency with existing policy provisions in the policy area 

Multilateralism is at the heart of EU's trade policy and the EU supports the WTO accession of 
third countries on right terms.  

1 

Council  Decision  94/800/EC  of  22  December  1994  concerning  the  conclusion  on  behalf  of  the 
European  Community,  as  regard  matters  within  its  competence,  of  the  agreements  reached  in  the 
Uruguay Round of multilateral negotiations (1986-1994) OJ L 336 23.12.1994, p. 1. 

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2.5. 

Consistency with other Union policies 

Consistent  with  the  EU  external  action  and  development  policy,  the  proposal  will  anchor 
Timor-Leste in the multilateral trading system in accordance with the guidelines set out by the 
WTO General Council on the accession of LDCs.  

3. 

POSITION TO BE TAKEN ON THE UNION'S BEHALF 

General Notes 

The objective of this proposal is to enable the EU to join a possible consensus in the WTO on 
the  adoption  by  the  Ministerial  Conference  of  the  envisaged  act,  consisting  of  a  decision 
regarding the accession of Timor Leste to the WTO.  

While it is not yet clear if, and to what extent, WTO Members will be able to reach consensus 
on  the  envisaged  act,  the  EU  position  at  MC13  has  to  be  established  in  advance  by  the 
Council pursuant to Article 218(9) TFEU.2  

The current proposal concerns a possible decision at MC13 on the accession of Timor-Leste 
to the WTO. In 2016, the Government of Timor-Leste applied for accession to the WTO. A 
Working  Party  on  the  accession  of  Timor-Leste  was  established  on  7  December  2016.  The 
sixth Working Party meeting took place on 11 October 2023. The multilateral negotiations on 
additional trade related areas are still ongoing. In March 2023, the Commission, on behalf of 
the  EU,  finalised  bilateral  negotiations  on  a  comprehensive  series  of  market  opening 
commitments  on  the  part  of  Timor-Leste.  Accession  to  the  WTO  is  expected  to  make  a 
positive  and  lasting  contribution  to  the  process  of  economic  reform  and  sustainable 
development in Timor-Leste. The EU should support the accession of Timor-Leste. 

Since negotiations are currently ongoing, the Commission expects that the Council will take 
its decision on the EU position on the outcome of the negotiations once the situation regarding 
the relevant texts becomes clear, either at the beginning or during the Ministerial Conference 
itself.  

The  initiative  is  fully  consistent  with  existing  policy  provisions.  Similar  decisions  were 
prepared  for  previous  WTO  Ministerial  Conferences,  including  most  recently  for  the  10th 
WTO Ministerial Conference in 2015.3  

Summary of terms of WTO accession 

Schedule of commitments: goods and services 

Tariffs for Goods  

The  tariff  schedule  of  Timor-Leste  consists  of  10,810  tariff  lines.  Timor-Leste  is  binding 
100% of its schedule and will implement the final bound rates as from the date of accession, 
with the exception of some tariff lines for information technology products (378 in 2027 and 
27 in 2030).  

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Industrial goods: The average final bound rate for non-agricultural products is 10.0% 
(highest tariff peaks are at 80% for fresh fish and bamboo). 

To the extent that, contrary to the current expectations, the consensus was formalised in an international 
agreement  amending  the  WTO  Agreement  or  in  a  plurilateral  international  agreement  among  some 
WTO  Members,  the  Commission  would  make  the  necessary  proposals  in  accordance  with  Article 
218(6) TFEU following the adoption of the texts and their opening for acceptance by the MC13 or by 
the WTO Members concerned during MC13.  
pdf (europa.eu) 

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• 

Agricultural goods: The average final bound rate for agricultural products is  15.7% 
(highest tariff peaks are at 80% for coffee and cocoa). 

These  average  levels  for  tariffs  are  very  ambitious  for  an  LDC,  especially  taking  into 
consideration the small size and vulnerability of the economy of Timor-Leste.  

Services 

Timor-Leste's  services  schedule  of  specific  commitments  in  services  is  very  comprehensive 
and  ambitious  considering  its  LDC  status.  Timor-Leste  will  undertake  market  access  and 
national treatment commitments in a broad range of services sectors, including professional, 
computer  and  other  business  services,  communication  services,  construction  services, 
distribution  services,  educational  services,  environmental  services,  financial  (insurance  and 
banking)  services,  health-related  and  social  services,  tourism  and  travel-related  services, 
recreational,  cultural  and  sporting  services  and  transport  services.  Timor-Leste  will  also 
commit to the reference paper on services domestic regulation. 

4. 

LEGAL BASIS 

4.1. 

Procedural legal basis 

4.1.1.  Principles 

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for 
decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by 
an  agreement,  when  that  body  is  called  upon  to  adopt  acts  having  legal  effects,  with  the 
exception of acts supplementing or amending the institutional framework of the agreement.’ 

The concept of ‘acts having legal effects’ includes acts that have legal effects by virtue of the 
rules of international law governing the body in question. It also includes instruments that do 
not  have  a  binding  effect  under  international  law,  but  that  are  ‘capable  of  decisively 
influencing the content of the legislation adopted by the EU legislature’4. 

4.1.2.  Application to the present case 

The  WTO  Ministerial  Conference  is  a  body  set  up  by  an  agreement,  namely  the  WTO 
Agreement, which according to Article IV:1 of the WTO Agreement has the authority to take 
decisions  on  all  matters  covered  under  any  of  the  multilateral  trade  agreements,  including 
decisions having legal effects. 

The envisaged acts  mentioned above constitute acts  having  legal  effects,  as they may affect 
the rights and obligations of the Union by virtue of international law. 

The  envisaged  acts  do  not  supplement  or  amend  the  institutional  framework  of  the 
Agreement. 

Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU. 

4.2. 

Substantive legal basis 

4.2.1.  Principles 

The  substantive  legal  basis  for  a  decision  under  Article  218(9)  TFEU  depends  primarily  on 
the objective and content of the envisaged act in respect of which a position is taken on the 
Union's  behalf.  If the  envisaged act  pursues two  aims or has two components  and if one of 
those  aims  or  components  is  identifiable  as  the  main  one,  whereas  the  other  is  merely 

4 

Judgment  of 
ECLI:EU:C:2014:2258, paragraphs 61 to 64.  

the  Court  of  Justice  of  7  October  2014,  Germany  v  Council,  C-399/12, 

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incidental, the decision under Article 218(9) TFEU must be founded on a single substantive 
legal basis, namely that required by the main or predominant aim or component. 

4.2.2.  Application to the present case 

The main objective and content of the envisaged act relate to the common commercial policy. 

The substantive legal basis of the proposed decision, therefore, is Article 207 TFEU. 

4.3. 

Conclusion 

The  legal  basis  of  the  proposed  decision  should  be  Article  207  TFEU  in  conjunction  with 
Article 218(9) TFEU. 

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2023/0458 (NLE) 

Proposal for a 

COUNCIL DECISION 

establishing the position to be taken on behalf of the European Union in the World 
Trade Organization’s 13th Ministerial Conference on the accession of the Democratic 
Republic of Timor-Leste to the WTO 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(4), first subparagraph, in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The  Marrakesh  Agreement  Establishing  the  World  Trade  Organization  (‘the  WTO 
Agreement’)  was  concluded  by  the  Union  by  Council  Decision  94/800/EC  of  22 
December 19945 and entered into force on 1 January 1995.  

Pursuant to Articles IV:1 and IX:1 of the WTO Agreement, the Ministerial Conference 
of the World Trade Organization (‘WTO’) may adopt decisions by consensus. 

The  WTO  Ministerial  Conference,  during  its  13th  meeting  on  26-29  February  2024, 
may adopt a decision on the accession of Timor-Leste to the WTO. 

It is appropriate to establish the position to be taken on the Union's behalf in the WTO 
Ministerial Conference, as the decisions are binding on the Union. 

Negotiations  for  the  WTO  accession  of  Timor-Leste  started  in  2016.  The  Working 
Party on the accession of Timor-Leste was established on 7 December 2016. The sixth 
Working Party meeting took place on 11 October 2023. The multilateral negotiations 
on additional trade related areas are still ongoing. In March 2023, the Commission, on 
behalf of the EU, finalised bilateral negotiations on a comprehensive series of market 
opening commitments on the part of Timor-Leste. Accession to the WTO is expected 
to  make  a  positive  and  lasting  contribution  to  the  process  of  economic  reform  and 
sustainable  development  in  Timor-Leste.  The  EU  should  support  the  accession  of 
Timor Leste, 

HAS ADOPTED THIS DECISION: 

Article 1 
The position to be taken on the Union's behalf in the 13th WTO Ministerial Conference shall 
be: 

To  join  the  consensus  reached  among  WTO  Members  with  a  view  to  adopting  a  decision 
regarding the accession of Timor-Leste to the WTO. 

5 

OJ L 336, 23.12.1994, p. 1. 

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This Decision is addressed to the Commission. 

Done at Brussels, 

Article 2 

For the Council 
The President 

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