Hague court to arbitrate in East Timor-Australia maritime border dispute

Australia had previously argued that the Permanent Court of Arbitration (PCA) based in The Hague - the world’s oldest international tribunal - had no jurisdiction in the row

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Protestors rally in front of the Australian embassy in Jakarta in March. Photo: AP

Published: 8:00pm, 26 Sep 2016Updated: 11:02pm, 26 Sep 2016

The tribunal that ruled China’s extensive claims to the South China Sea were invalid is taking up another regional sea border row.

In a blow to Australia, the world’s oldest international court has agreed to take up a case pitting tiny East Timor against its giant neighbour stepping into a decade-long dispute over a maritime border which cuts through lucrative oil and gas fields.

The Permanent Court of Arbitration (PCA) “held that it was competent to continue with the conciliation process” initiated by East Timor against Australia in April, the court based in The Hague said.

East Timor last month urged the panel - the world’s oldest arbitration tribunal - to help end the dispute that has soured relations between the two countries, saying negotiations have so far failed.

The boundary dispute between East Timor and Australia centres on a demand from East Timor that the border of the oil field between the two countries be redrawn. File photo: AFP

Australia in return argued it had no jurisdiction in the battle as Canberra had already signed a treaty with Dili ruling out recourse to the court.