America in Asia: Guam envisioned as a free trade zone

By Pacific Island Times News Staff

Anthony Ada

 Vice Speaker V. Anthony Ada has introduced a bill aimed at transforming Guam into a strategic logistics hub for U.S. exports to Asia, leveraging the island’s geographical advantage as America’s gateway to the Asia-Pacific region.

The proposed “Guam Free Trade Zone Act of 2025,” Ada said, would formally establish a Free Trade Logistics Zone.

“This legislation begins what will be a lengthy but needed process, which will eventually help diversify our economy,” Ada said.

“We need to leverage Guam’s location, existing federal investments, and our unique customs zone status to promote trade, investments, and job creation," he added.

The legislation would authorize the Guam Economic Development Authority to work with local and federal entities to initiate the process of designating a free-trade zone on island.

GEDA would also be required to coordinate with U.S. Customs and Border Protection and Guam Customs to discuss rules for pre-clearances and bonded warehouses, establish tax incentives, and streamline permitting and licensing to attract investors, as well as formulate a marketing plan.

Guam lies within direct proximity to major Indo-Pacific markets, including Japan, Korea, Taiwan, and the Philippines, and is outside the U.S. Customs Zone, making it an ideal jurisdiction for an export zone.

“Guam is America’s front door to Asia,” Ada noted. 

The proposed FTLC would enable goods to be routed through Guam for repackaging, value-added processing and transshipment. This would enhance efficiency while reinforcing America’s regional trade capacity.

“We are talking about producing training and high-skilled jobs in various industries, opportunities for federal investments in government-owned infrastructure, an expansion of Guam’s role in U.S. trade, private investments, and a new tax base,” Ada said.

“This is about creating sustainable development, but this legislation is just the starting point, and the work is far from over.  Our office is also engaging in conversations with federal partners to concurrently pursue this endeavor.”

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The vice speaker has written to the chairpersons of the congressional House and Senate Committees overseeing the territories, specifically the Natural Resources Committees, to consider legislation designating Guam as a Regional Export Zone, which is necessary for this endeavor. 

He has also written to the CBP to seek technical assistance for the local government, along with certain approvals for pre-clearances, cold storage, and bonded warehouses. 

“We need to conduct all these endeavors concurrently.  The legislation allows Guam to establish the framework, but we are also engaging federal partners in the process now to ensure this is a collective effort which will eventually see positive results for Guam,” Ada said.

Sen. William Parkinson earlier introduced a similar proposal, titled “Guam Tariff Advantage Development Act,” which would enable manufacturers to bring materials to Guam duty-free, add and transform them locally, and then export the end-products duty-free into the U.S. mainland.

Parkinson’s bill aims at setting up Guam as a primary hub in the Asia-Pacific region for tariff-free importation, manufacturing, assembly, and re-exportation to the U.S. mainland.

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