Guam Country Brief - April 2008
Introduction
Guam is a self-governing territory of the United States of America, with Hon. George W. Bush Head of State and Governor Felix P. Camacho Head of Government.
Political Overview
Guam's Legislature consists of 15 members (reduced by referendum from 21 members in 1996), elected by popular vote every two years. It is empowered to enact legislation on local matters, including taxation and fiscal appropriations. Executive power is vested in a civilian governor who is elected by popular vote every four years.
Elections were last held in 7 November 2006 in which Felix P. P. Camacho (Republican) was re-elected Governor and Dr. Michael W. Cruz was elected Lieutenant Governor. The principal parties in Guam are the Democrats and the Republicans, but their linkages with the mainland US parties are tenuous and members often vote across party lines.
The judiciary consists of the Federal District Court of Guam, whose judge is appointed by the US President for a term of eight years. There are two levels of local trial courts: the Superior Court of Guam, for criminal and civil cases, and the traffic, juvenile, and small-claims courts. Judges are appointed by the Governor with consent of the Legislature and are reconfirmed by majority public vote every four years. Appeals may be made to the US Court of Appeals for the Ninth Circuit and to the U.S. Supreme Court.
Each of the island's villages is headed by a popularly elected Commissioner. A Chief Commissioner, elected by the Commissioners, acts as liaison between the Governor and the districts.
Economic Overview
Guam is prosperous, with a GDP per capita of $15,000 (2005 est.) and western consumption patterns. The U.S. armed forces own one-third of the land in Guam and provide about 60 per cent of its income. The second most important source of revenue is tourism, primarily from Japan, South Korea and Taiwan. Industrial enterprises (a petroleum refinery, textile and garment firms) were established in the early 1970s but the fisheries and services sectors are more important. Major imports are petroleum products, machinery, automobiles and transport vehicles, manufactures, and food. Major export partners are Japan 67.2%, Singapore 11.6% and the UK 4.8%. Major import sources are Singapore 50%, South Korea 21.4% and Japan 14%.
A US-Japan agreement released on 29 October 2005 provides for the transfer of personnel and equipment from US military bases in Okinawa to Guam. As a result, US military personnel in Guam are projected to rise from 14,000 to 40,000 over the next decade. The greater presence will lead to significantly increased revenues for the Guam Government, in the order of an additional US$100 million per year, and approximately US$15 billion in new infrastructure projects for Guam. Planning for the transfer includes environmental impact studies between 2007-2012 and construction design from 2008-2012, with the main construction phase from 2009-2014.
Bilateral relationship
Australia enjoys good relations with Guam and there is a commitment to look constructively at expanding these contacts where feasible.
The Governor of Guam visited Australia in February 2008, under the Department of Foreign Affairs and Trade's Special Visits Program. The visit served to identify opportunities for increased cooperation and trade linkages between Australia and Guam on education, healthcare, construction and waste management infrastructure.
Australia is a popular tourist destination for Guamanians, and contact has been enhanced by direct flights between Guam and Cairns which are four and half hours apart by air.
Guam is an active participant in the international sporting arena and sporting contacts between Guam and Australia have been substantial.
Bilateral economic and trade relationship
The ANZ Bank, which recently purchased Guam's fourth largest bank, the Citizens Security Bank, and Australian infrastructure company Leightons together represent half of the multi-national business community on Guam.
The Australia-US Free Trade Agreement (AUSFTA) does not apply to Guam because it is outside the US Customs territory. Contracts with the US Department of Defence may, however, be covered by AUSFTA. Australian exports to Guam totalled A$14,759 million in 2005-06, consisting mainly of building materials, foodstuffs and pharmaceuticals. Imports totalled A$254,000 in 2005-06, consisting mainly of printing machinery.
Visitor Information
Australians travelling to Guam are advised to consult the Smartraveller travel advice.