Group of 3 (G3)

What is the Group of 3?

Group of 3 alludes to a ten-year free trade agreement between Mexico, Colombia and Venezuela that started in 1995 and lasted until 2005. The pact covered various issues including intellectual property rights, public-area investments and the easing of trade limitations.

Venezuela, under the leadership of Hugo Chavez, selected to not go on in that frame of mind of 3 when the original agreement came up for renewal in 2006. Venezuela rather joined Mercosur, another free trade area that originated before the Group of 3. At the point when Venezuela left, Colombia and Mexico agreed to go on as free trade partners for around nine additional years.

Grasping Group of 3 (G3)

The Group of 3 was among several free trade agreements that the government of Mexico went into, the biggest of which was the North American Free Trade Agreement (NAFTA). Mexico was the biggest and most powerful Group of 3 partner. The pact was part of the Mexican government's plan to expand free trade all through a lot of Central America, including Peru, Bolivia, and Ecuador.

Remarkable alterations to the agreement incorporated a decree to support free trade in extra industries in December 2004 and a change that Mexico and Colombia executed in August 2011 to reduce tariffs on a range of extra products.

Mexico and Colombia ended their two-way alliance when each entered the Pacific Alliance with Chile and Peru in 2014. The goal of this agreement was to support trade between every one of the four countries and fortify financial connections to Asia as every country borders the Pacific Ocean.

Tradition of the Group of 3

The Group of 3 didn't last for a really long time, and Venezuela seemingly never turned into an exceptionally strong participant in the pact. Nonetheless, the Group of 3 prevailed with regards to supporting trade among Mexico and Colombia.

The Group of 3 supported the region's energy and utility sectors. One of the Group of 3's most memorable tasks was to connect both power frameworks and gas pipelines from Mexico to Colombia and Venezuela. In October 2007, a gas pipeline opened among Colombia and western Venezuela, giving the opportunity to gas to flow to areas where it was not beforehand open.

According to Mexico's viewpoint, the Group of 3 turned out to be part of a strategy to open its trade policies with an end goal to help exports fundamentally. The Group of 3 offered Mexico a way to leverage labor markets all through the region to deliver completed goods that could then be sold into the United States and Canada by means of NAFTA. The Group of 3 assisted with fortifying Mexico's position as Central America's most important trading partner, albeit other trade agreements seemingly helped Mexico undeniably more. The Group of 3 debilitated partly due to other regional trade agreements as well as bilateral agreements between countries in Central America and the U.S.

Alternately, Colombia and Venezuela appeared to have trusted that the Group of 3 would give an inevitable entry to them to join NAFTA; this won't ever happen.