Group of 3 - G3

AAA

DEFINITION of 'Group of 3 - G3'

A free trade agreement between Colombia, Mexico and Venezuela. Together, these three countries comprise 70% of the entire population of the Greater Caribbean region. The three countries enacted the accord on January 1, 1995. The agreement covered numerous issues including intellectual property rights, public sector investments and easing of trade restrictions including a 10% lowering of tariffs between the three countries for 10 years (between 1995 and 2005). Venezuela opted to not continue the relationship in 2006 and instead joined the South American trade group Mercosur. Colombia and Mexico agreed to continue the agreement.

Also known as G3 Free Trade Agreement.

INVESTOPEDIA EXPLAINS 'Group of 3 - G3'

One of the Group of 3's first projects was to construct a gas pipeline that would extend from Colombia to Venezuela. The pipeline – which had an original price tag of $800 million – would enable Venezuela to tap into Colombian gas fields. The project was completed in 2007 and transports 150 million cubic feet of gas per day to the country's gas-deficient western region. Sometime between 2011 and 2014 Venezuela plans to reverse the pipeline's flow in order to benefit Colombia as well.

RELATED TERMS
  1. Free Trade Area

    A group of countries that invoke little or no price control in ...
  2. Group of 77

    The largest intergovernmental organization of developing nations ...
  3. Group of 11 - G11

    A forum of developing (lower-middle income) countries created ...
  4. EIA Natural Gas Report

    A weekly report provided every Thursday by the Energy Information ...
  5. Liquefied Natural Gas

    The liquefied state of natural gas, which is created by cooling ...
  6. Commodity

    1. A basic good used in commerce that is interchangeable with ...
Related Articles
  1. What Is International Trade?
    Personal Finance

    What Is International Trade?

  2. Globalization: Progress Or Profiteering?
    Economics

    Globalization: Progress Or Profiteering?

  3. NAFTA's Winners And Losers
    Economics

    NAFTA's Winners And Losers

  4. What is Globalization?
    Investing

    What is Globalization?

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center