Now that Australia has handed back disputed documents, Timor-Leste is challenging the 2006 treaty after accusations of spying

Timor-Leste is set to resume a formal challenge against an oil and gas treaty that became mired in controversy following claims Australia bugged the cabinet room in Dili to gain the upper hand in negotiations.

But the government of Timor-Leste has decided to withdraw an International Court of Justice case against Australia relating to evidence seized by the Australian Security Intelligence Organisation (Asio) in raids in December 2013.

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