What happened 2007 AD in Timor-Leste

Gusmão declined to run for another term in the April 2007 presidential election.

The CNRT placed second in the June 2007 parliamentary election, behind Fretilin, taking 24.10% of the vote and 18 seats. He won a seat in parliament as the first name on the CNRT's candidate list.

The CNRT allied with other parties to form a coalition that would hold a majority of seats in parliament. After weeks of dispute between this coalition and Fretilin over who should form the government, Ramos-Horta announced on 6 August that the CNRT-led coalition would form the government and that Gusmão would become Prime Minister on 8 August.

Gusmão was sworn in at the presidential palace in Dili on 8 August.