Australia Signs New Defence Pact With Timor-Leste

East Timor President Jose Ramos-Horta (L), Prime Minister Xanana Gusmao (R), and Australia’s Deputy Prime Minister and Defence Minister Richard Marles attend a military parade marking the 24th anniversary of the Restoration of Independence in Tasitolu, Dili, on May 20, 2026. Valentino Dariell De Sousa/AFP via Getty Images

Australia has signed a new defence agreement with Timor-Leste (also known as East Timor) as Canberra works to shore up ties in a region where Beijing is expanding its influence.

Deputy Prime Minister and Defence Minister Richard Marles and Timor-Leste Prime Minister Xanana Gusmão signed the Defence Cooperation Framework in the capital, Dili, on Oct. 22.

It covers maritime security, disaster relief, peacekeeping, infrastructure and English-language training, and strengthens a defence partnership that dates back to Timor-Leste’s independence in 2002.

“Australia is proud to be Timor-Leste’s largest defence and security partner, and we remain committed to supporting [its] defence capability,” Marles said.

Australia will also spend $62 million (US$43.6 million) over five years to bolster Timor-Leste’s cybersecurity and disaster response, as well as provide its national police new vessels to patrol its waters and fight cross-border crime.

He also noted that the world was becoming “much more complicated” as the rules-based order came under pressure.

“This is a time to double down on friendship, to double down on family, and that’s certainly how we regard our relationship with Timor‑Leste,” he said.

A Target of Beijing’s Influence

Though home to just over 1.4 million people, Timor-Leste lies around 700 kilometres from Darwin and is seen by Canberra as a vital buffer against hostile foreign influence and a key to safeguarding maritime security in the Timor Sea.

That position has drawn Beijing’s attention. In 2023, China and Timor-Leste upgraded their relationship to a “comprehensive strategic partnership,” with Chinese state media reporting that the deal included military exchanges.

At the time, President José Ramos-Horta denied the claims, while assuring that Australia and Indonesia could “always sleep at peace.”

But in August, Chinese Defence Minister Dong Jun made his first visit to Timor-Leste, where the two countries agreed to deepen military ties, according to the regime’s defence ministry.

A Not-So-Smooth Relationship

Australia remains Timor-Leste’s largest development and security partner.

In January, Prime Minister Anthony Albanese visited Dili and signed a new partnership agreement, pledging $220 million for health, education and disability services and $80 million to help grow local businesses.

But the relationship has not always been smooth. In 2004, Australia’s overseas spy agency allegedly planted listening devices next to the Timorese prime minister’s office to gain an advantage in negotiations over the Greater Sunrise gas field in the Timor Sea.

Timor-Leste later took its maritime boundary dispute with Australia to a UN-backed conciliation process. The Turnbull government challenged the commission’s jurisdiction, but its objections were rejected.

Foreign Minister Penny Wong conceded in 2023 that this “was not in the spirit of our friendship,” and Albanese told Timor-Leste’s parliament in January that some actions by Australian governments “did not honour—and were not worthy of—the close friendship between our nations.”

The two countries settled their maritime boundary through a treaty in 2018. Timor-Leste is now pushing to have gas from the Greater Sunrise fields piped to its southern coast for processing, with production currently expected to begin in 2034–2035.

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A Target of Beijing’s Influence A Not-So-Smooth Relationship