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. Energy Derivatives

    A derivative instrument in which the underlying asset is based ...
RELATED FAQS
  1. How does the price of oil affect Venezuela's economy?

    The price of oil is one of the most heavily watched trends in economics, as it has an effect on the economies of every nation ... Read Full Answer >>
  2. What are the most common market indicators to follow the Mexican stock market and ...

    The two most widely used indicators for tracking the Mexican Stock Exchange are the MEXBOL Index and the INMEX Index. The ... Read Full Answer >>
  3. What are the most common market indicators to follow the Colombian stock market and ...

    Analysts look primarily at the Indice General de la Bolsa de Valores de Colombia (IGBC) to follow the Colombian stock market. ... Read Full Answer >>
  4. What developed countries have the greatest exposure to oil & gas drilling?

    Precise information on the distribution of oil and gas drilling does not exist, mostly due to uncertainty about the size ... Read Full Answer >>
  5. How do NGOs get funding?

    A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs ... Read Full Answer >>
Related Articles
  1. Personal Finance

    What Is International Trade?

    Everyone's talking about globalization, so we explain what is it and why some oppose it.
  2. Economics

    Globalization: Progress Or Profiteering?

    Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ...
  3. Economics

    NAFTA's Winners And Losers

    Read on to find out who this free-trade agreement helped, and who it hurt.
  4. Mutual Funds & ETFs

    Is the PowerShares (PFEM) ETF a Good Bet Now?

    What you need to know if you are considering trading PowerShares Fundamental Emerging Markets Local Debt ETF.
  5. Investing

    Is Venezuela The New Cuba?

    While it may have populist anti-US policies, Venezuela's role in the global energy market and its trade with the US would suggest that it is no Cuba.
  6. Mutual Funds & ETFs

    What's the Best ETF for Exposure to Mexico?

    Mexico should look more enticing to investors than in the past for a very good reason. Is EWW the way to play it?
  7. Options & Futures

    Forecast Of Oil Production by Country in 2015

    Supply is still ahead of demand and looks to stay ahead for most of 2015. Until production noticeably weakens, that situation is unlikely to change.
  8. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.
  9. Investing

    Countries Near Economic Collapse

    These four countries are nearing economic collapse.
  10. Economics

    Currency Crises In These Countries Will Shape 2015

    Ongoing financial and geopolitical issues have led several countries to the verge of a currency crisis in 2015.

You May Also Like

Hot Definitions
  1. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  2. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  3. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  4. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  5. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  6. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center