Grant Wyeth – With the Parseria Foun ba Era Foun declaration, Australia and Timor-Leste hope to build a partnership grounded in equality, shared regional interests, and respectful cooperation between neighbors.

In late-January, Australian Prime Minister Anthony Albanese and Timor-Leste Prime Minister Xanana Gusmao announced a Joint Declaration on establishing a Parseria Foun ba Era Foun ("new partnership for a new era"), hoping to expand the friendship between the two countries, and move past recent diplomatic friction – over the maritime boundary and Australia's alleged espionage – that has prevented greater cooperation.

The declaration identifies three pillars for the relationship: peace and regional integration, prosperity and resilience, and people-to-people and institutional links. It commits the two countries to deepening cooperation on security, economic development, labor mobility, disaster response, and institutional exchange, while acknowledging mutual respect for sovereignty and support for international law.

Central to the declaration is the enhancement of economic and development cooperation. The agreement focuses on boosting Timor-Leste's development capacity, recognizing Australia's role in providing technical assistance, trade partnerships, and investment. Timor-Leste, in turn, stands to gain vital expertise and resources, which will empower the nation to become more self-sufficient. The expansion of educational exchanges and collaborative research initiatives is also anticipated, strengthening the ties between the two countries' future generations.

Alongside this, Australia and Timor-Leste have committed to strengthening their defense relations. The partnership addresses shared concerns over regional security challenges, including natural disasters, maritime security, and the rise of new geopolitical dynamics. Through joint training exercises, intelligence sharing, and coordination in multilateral forums, the partnership aims not just to enhance Timor-Leste's own defense capabilities, but to foster trust and mutual understanding. Ultimately, this will contribute to broader regional stability.

These security challenges are extended to environmental sustainability and climate action. The declaration emphasized collaboration on sustainable development practices, resource management, and disaster risk reduction. Timor-Leste is heavily reliant on its natural resources, and Australia's expertise in environmental management can be vital to advancing and maintaining Timor-Leste's agriculture and fisheries sectors.

Central to the declaration is forging stronger people-to-people links. There is a significant Timorese diaspora in Australia of around 20,000 people, many of whom arrived following Indonesia's invasion of Timor-Leste in 1975. However, the declaration highlights the need for greater mobility and engagement between citizens of each country. Increased cultural exchange programs, tourism, and enhanced education opportunities are key areas of focus.

The declaration highlights the importance of Community Friendship Groups, the Australian Volunteers Program, the Australian NGO Cooperation Program, and Australia Awards scholarships in enhancing these links. It also states the objective of boosting labor mobility through Australia's Pacific Australia Labor Mobility (PALM) scheme, which Timor-Leste participates in alongside Pacific countries. The goal is to see 10,000 Timorese workers in Australia by 2027-28.

The declaration's emphasis on mutual respect is an attempt by Australia to shift public perceptions in Timor-Leste, which have been shaped by past disputes. Although the maritime boundary was resolved in 2018, following a U.N.-led conciliation process, there remains some dispute over the Greater Sunrise oil and gas fields that lie upon it. While royalty ownership has been decided, discussions remain ongoing about how the gas should be transported, and whether it should be piped to Timor-Leste or to an Australian facility.

Timor-Leste sees the development of industry and capabilities as essential to its future, and therefore wishes to build processing facilities on-shore. Australia argues that pumping oil and gas to facilities in Darwin would mean Timor-Leste would be able to have an immediate cash injection from royalties. The dispute has created a stalemate, with the companies negotiating to exploit the field far keener on processing its resources in Darwin.

As part of the new declaration, Australia will create an infrastructure fund for Timor-Leste that will be financed from 10 percent of Australia's share of the revenue from the Greater Sunrise Project. The caveat is that this money will only appear once the companies involved agree on a viable plan for developing the project.

The Parseria Foun ba Era Foun declaration is more than a diplomatic communique; it's a blueprint for a bilateral relationship that hopes to build a partnership grounded in equality, shared regional interests, and respectful cooperation between neighbors. Of course, this relies on the Greater Sunrise Project moving forward, where Dili has bet much of its future.

Source: https://thediplomat.com/2026/02/australia-and-timor-leste-a-new-partnership-for-a-new-era