Group of Three (G3)

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O  V  E  R  V  I  E  W

Type of Agreement

Free Trade Area.

Members

Colombia, Mexico, and Venezuela.

Representative Market

153 million people.

Effective Date/Period

January 1, 1995/Minimum of 3 years, renewable for an indefinite period.

Objective

The elimination of tariff among the member nations over a ten year period. To add more members after implementation.

 

K  E  Y     I  S  S  U  E  S

- EXPORTERS -

• Customs Surtaxes

  The parties will be able to maintain existing customs rights for 5 & 1/2 years.
  

  Single or Various Tariff Reduction Schedules

  Single: Yes in 90 percent of the cases. Various: NA.
  

  MFN Treatment for Tariffs

  No.
  

  Sectoral Safeguard: Exchange Rate Movements

  Balance of Payments.
  

- SERVICES-

• Temporary Entry of Business Persons, Service Providers/Investors

  Allows business people, investors, intra-company transfers and professionals temporary entry.
  

  Professional Services

  Broad coverage with exceptions and reservations.
  

  Financial Services

  Negotiations are not complete in this sector.
  

  Transportation Services

  NA.
  

  Telecommunication Services

  Access to basic telecommunications services.
  

-MANUFACTURING/PRODUCTION-

• Drawbacks

  Provisions allow the use of duty retention and duty drawback programs, subject to certain conditions.
  

  Duty-free Zones and Cross-Border Assembly Plants

  Goods must comply with the rules of origin.
  

  National Treatment Provisions

  Yes: (for goods and services) Technical Standards. No: Plant and Animal Health Standards.
  

  Rules of Origin Requirements

  Yes.

This summary is online: http://www.americas.fiu.edu

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