Group of 3 - G3
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.