Timor-Leste

📊 Overview

Timor-Leste stands as the world's #190 largest exporter and #182 largest importer, demonstrating emerging market dynamics.

The trade profile reveals a deficit of 825.50 million, reflecting import dependencies for growth.

The country maintains active trading relationships with 20 major partners, creating a highly diversified trade network.

Monthly trade flows average $95.90M, generating continuous economic activity across logistics, finance, and trade services.

🚢 Export Markets

Export concentration shows China as the dominant market at 45.9%. The top three markets control 85.2% of exports.

Regional patterns reveal strong East Asian integration. Secondary markets (Canada, Australia, Portugal) provide $7.30M in additional trade.

📦 Import Sources

Timor-Leste relies heavily on Indonesia for imports (34.4%),creating supply chain concentration risk.

Energy suppliers including United Arab Emirates (3.50M) collectively provide 3.50 million or 0.4% of imports, highlighting the economy's dependence on imported energy resources.

Manufacturing inputs come primarily from Indonesia, China, Malaysia, Thailand, reflecting deep integration into Asian production networks. China's dominant position at 261.74 million encompasses electronics components, textiles, machinery parts, and consumer goods, creating both efficiency benefits and concentration risks.

The USA provides 18.95 million (1.9%) in imports, concentrated in agricultural products, aircraft, pharmaceuticals, and advanced technology.The top 10 import sources account for 96.0% of total imports, with the remaining 4% distributed among 10 other suppliers.

Regional sourcing patterns reveal strong ASEAN integration with 4 Southeast Asian nations providing 508.72 million (51.5%) of imports. European suppliers including Belgium (1.95M), Netherlands (1.44M) focus on luxury goods, machinery, and specialized chemicals.

Supply chain resilience strategies increasingly emphasize "China Plus One" approaches, with India, Thailandemerging as alternative manufacturing bases. The geographic proximity of major suppliers balances efficiency with risk diversification.

📦 Product Composition

🚀 Export Products

Timor-Leste's export economy centers on diversified industrial production, with the leading export being petroleum oils and oils obtained from bituminous minerals, crudeat $112.86 million, accounting for 69.4% of total exports.

Electronics, semiconductors, and machinery contribute 866.47 thousand or 0.5% of exports.

The automotive sector's dominance is evident in the export portfolio, with . This automotive specialization reflects decades of manufacturing excellence, continuous innovation in fuel efficiency and hybrid technology, and established global brand recognition.

The transition to electric and hybrid vehicles is captured in export data, with 0 categories specifically related to alternative propulsion systems, totaling $0.

Beyond automotive, Timor-Leste maintains strong positions in specialized equipment, electronic components (866,467), and Oils, Petroleum gases and other gaseous hydrocarbons, Coffee.

The top 20 export products collectively account for 98.1% of total exports, revealing moderate concentration with room for further diversification.

🛒 Import Products

Energy dominates Timor-Leste's import profile, with fossil fuels accounting for 138.35 million or 14.0% of total imports. Crude oil leads at 138.35 million (14.0%), followed by natural gas and coal. This energy import dependency shapes economic policy, inflation dynamics, and strategic relationships with supplier nations.

Beyond energy, critical imports include rice, semi-milled or wholly milled, whet... (60.44M, 6.1%), of an unladen weight exceeding 15,000kg (26.00M, 2.6%), palm oil and its fractions, other than c... (17.95M, 1.8%), pasta (excluding stuffed), cooked or oth... (16.59M, 1.7%), tubes, pipes and hollow profiles (not se... (15.69M, 1.6%).Electronic components and devices total 11.07 million (1.1% of imports), supporting domestic manufacturing and assembly operations.

The import product mix reveals structural characteristics of Timor-Leste's economy: food security dependencies, and sophisticated consumption patterns.

The ratio of raw materials to finished goods in imports (10 : 10among top 20 products) indicates balanced import composition. Import substitution potential exists in agriculture and technology sectors through targeted industrial policies and investment.

Product diversification metrics reveal focused product specializationwith implications for economic resilience and growth potential. The technology ladder progression from 15 primary products to 3 high-tech goods indicates the economy's structural transformation and industrial upgrading trajectory.

Value addition opportunities exist in transitioning from raw material exports to processed goods, from components to finished products, and from standard to customized offerings. The product space connectivity, measuring relatedness between current exports and potential new products, suggests need for capability building to enter new product categories.

⚖️ Trade Balance Dynamics

Export-to-import ratio of 0.165 means exports cover 16.5% of import costs.

🔗 Key Relationships

The Timor-Leste-Indonesia relationship leads at 348.40 million in bilateral trade.View detailed analysis →

Additional major partnerships include Singapore (126.31M total trade), Other Asia, nes (45.72M total trade), India (43.26M total trade). Regional integration through Asian supply chains facilitates technology transfer, market access, and production efficiency. The diversity of trading relationships—1.09B across top 10 partners—provides resilience against bilateral tensions and regional disruptions.

🏆 Competitive Position

Global rankings position Timor-Leste as the #190 exporter worldwide,in the developing trader category. The country's share of global exports at approximately 0.002%offers opportunities for market share expansion.

Export sophistication, measured by the dominance of primary commodities, indicates potential for value chain upgrading. The revealed comparative advantage (RCA) index shows strongest competitiveness in sectors where Timor-Leste's global market share exceeds its overall trade share by factors of 2 or more.

Competitive advantages emerge in sectors where export concentration exceeds import share, particularly inpetroleum oils and oils o, liquefied, butanes, not roasted or decaffeina. The revealed comparative advantage is strongest in product categories representing91.2% of exports. Market positioning against regional competitors shows niche specialization opportunities.

Trade complementarity with major partners suggests deep integration into global supply chains. The export quality ladder, comparing unit values to world averages, indicates competitive pricing strategies.

Competitive dynamics are shaped by factor endowments including cost advantages and resource availability, infrastructure quality, and business environment. The export survival rate, measuring the persistence of export relationships over time, suggests need for relationship strengthening.

Innovation capacity, reflected in the technology content of exports and R&D intensity, determines long-term competitiveness trajectories. The competitive threat from emerging exporters in similar product categories requires continuous upgrading and differentiation strategies to maintain market position. Regional integration through trade agreements provides preferential access to0 markets, creating competitive advantages over non-member competitors.

🎯 Strategic Outlook

The trade profile presents both opportunities and challenges for economic development strategy. Key strengths include strong import capacity enabling technology transfer and consumption growth,diversified market access reducing concentration risk, and competitive positions in essential commodities.

Vulnerabilities include excessive reliance on single export markets. The intersection of these factors creates a complex strategic landscape requiring careful navigation to maximize opportunities while mitigating risks.

Strategic priorities should focus on export promotion and import substitution to enhance trade competitiveness. Opportunities exist in expanding trade with Other Asia, nes, Senegal, Malaysia, developing new product capabilities in higher technology sectors, and strengthening regional integration through new partnership frameworks.

The digital transformation of trade, including e-commerce, digital services, and blockchain-based trade finance, offers new avenues for market access and efficiency gains. Green trade opportunities in renewable energy, sustainable products, and carbon markets represent growing segments aligned with global sustainability goals.

The evolving global trade environment, characterized by technological disruption, geopolitical realignment, and sustainability imperatives, will fundamentally reshape Timor-Leste's trade prospects. Success requires balanced policies addressing both improving export capacity while ensuring sustainable import financing.

Investment in infrastructure, education, and innovation ecosystems will determine the ability to climb value chains and capture larger shares of global value addition. The resilience agenda, emphasizing supply chain robustness, strategic autonomy in critical sectors, and economic security considerations, must be balanced with efficiency and openness principles.

As global trade patterns continue evolving, Timor-Leste's position as the world's #190 exporter provides a platform for continued growth, requiring adaptive strategies, institutional strengthening, and sustained commitment to competitiveness enhancement in an increasingly complex and interconnected global economy.