The Timor Sea Conciliation: The Unique Mechanism of Dispute Settlement

Abstract

Abstract The maritime boundary dispute between Timor-Leste and Australia was submitted to the compulsory conciliation procedure under the United Nations Convention on the Law of the Sea (UNCLOS). This is the first instance of conciliation, whether voluntary or compulsory, under UNCLOS. The Timor Sea conciliation led to the successful settlement of the long-standing deadlock between the parties that had hitherto not been settled by negotiation and had no possibility of being settled by litigation (within, for example, International Tribunal for the Law of the Sea or International Court of Justice proceedings) or arbitration (within the context of an UNCLOS Annex VII tribunal). This article aims to elucidate the unique mechanism of conciliation and, to this end, analyses both the procedural particularities of conciliation under UNCLOS and the substantive considerations in conciliation proceedings. The author places emphasis, in particular, on the fundamental importance of the economic factor in the Timor Sea maritime delimitation – namely, the sharing ratio of the natural resources in the Greater Sunrise gas fields. Being a definitive factor for the success of this conciliation, it was the economics of this dispute that incentivized the parties to compromise and settle. Furthermore, given that conciliation is a most elucidating piece in the rather complicated puzzle that is the UNCLOS dispute settlement mechanism, the Timor Sea conciliation offers valuable insights into this mechanism.