Group of 3 (G-3)
Overview
The Group of 3 (G-3) was a free trade agreement between Mexico, Colombia and Venezuela that began in 1995. It covered trade liberalization across goods and services, intellectual property rights, public-sector investment rules, and measures to ease trade restrictions. The pact aimed to deepen regional economic integration and expand market access among the three countries.
Members and timeline
- 1995: G-3 agreement entered into force between Mexico, Colombia and Venezuela.
- 2005–2006: The agreement effectively wound down as Venezuela declined to renew the pact in 2006 and instead joined Mercosur. Mexico and Colombia continued bilateral cooperation beyond Venezuela’s departure.
- 2007: A Colombia–Venezuela gas pipeline opened in October, reflecting energy cooperation that arose during the G-3 period.
- 2011: Mexico and Colombia implemented additional tariff reductions on a range of products.
- 2014: Mexico and Colombia joined Chile and Peru in the Pacific Alliance, ending the G-3 era of relations between those two countries.
Key provisions and changes
- Trade liberalization: phased reductions in tariffs and removal of many trade barriers among the three countries.
- Intellectual property and investment: provisions to protect IP and govern public-sector investment.
- Sectoral expansion: a 2004 decree and later bilateral measures broadened the scope of tariff reductions and opened more industries to preferential treatment.
- Energy and infrastructure cooperation: early projects sought to link power grids and gas pipelines across the member states.
Economic objectives and outcomes
- Mexico’s strategy: Mexico used the G-3 as part of a broader agenda to extend free trade across Central and South America and to strengthen its role as a regional export platform. By integrating labor and production across partners, Mexico could better serve markets in the U.S. and Canada under NAFTA.
- Colombia and Venezuela: both countries viewed the G-3 as a pathway to deeper integration with North American markets, though neither joined NAFTA.
- Tangible results: the G-3 aided trade growth—especially between Mexico and Colombia—and supported regional energy projects such as cross-border pipelines.
Reasons for decline and legacy
- Political shifts: Venezuela’s decision to join Mercosur and not renew the G-3 removed a founding member and changed the bloc’s dynamics.
- Proliferation of alternatives: new regional and bilateral agreements (including Mexico’s broader network of FTAs and the later Pacific Alliance) reduced the relative importance of the G-3.
- Mixed engagement: Venezuela was never a consistently strong participant, limiting the pact’s long-term cohesion.
Overall, the G-3 was short-lived but contributed to increased trade between Mexico and Colombia and facilitated infrastructure projects in the energy sector. Its principal legacy is as an early step in regional trade liberalization that paved the way for subsequent, more durable arrangements.
Sources
- Congressional Research Service, “Mexico’s Free Trade Agreements”
- Asociación Latinoamericana de Integración (ALADI), About Us
- Australian Government, Department of Foreign Affairs and Trade, Pacific Alliance Free Trade Agreement
- Reuters, “Venezuela and Colombia Inaugurate Gas Pipeline”