The DTIS covers five main areas. Section I looks at macro and trade policies as they relate to external competitiveness and market access. Section II analyzes the export potential in the agriculture sector. Section III looks at structural constraints to trade and recommends possible measures to help improve productivity and reduce costs. Section IV examines the critical infrastructure needs to facilitate trade. Section V looks at implementation arrangements and next steps.
The objective of the Timor-Leste Diagnostic Trade Integration Study (DTIS) is to agree on priority actions to help overcome constraints to expanding agricultural exports in the near-term. It supports the government's efforts to develop a broader international trade strategy, which may include strategic sectors such as tourism and fisheries. The focus of the DTIS is on short-term results in areas with immediate export potential. It therefore looks only at the agriculture sector.
Achieving export growth and diversification are essential for supporting overall economic growth and employment generation. Non-oil export growth is critical in light of the external sustainability risks of depending on exhaustible petroleum exports. Expanding output for domestic consumption is also a priority and may help reduce dependence on imports. Policy actions to expand exports will impact positively on domestic trade as well. Timor-Leste faces the challenge of having to mostly create a non-oil export sector, rather than reviving one that is stagnant or destroyed because of conflict. This context is quite unique even when compared to similar small-island or post-conflict countries.