The agreement was signed by the foreign ministers of three countries during a two-day meeting that started Thursday.

The G-3 talks established import quotas for the industries of Colombia and Venezuela to have a "security cushion," said Mexican Foreign Minister Luis Derbez.

He said Mexico would export fewer vehicles to Colombia because it does not want to hurt the automobile sector of Colombia and Venezuela.

According to Derbez, Mexico will enter into the two countries' markets with a reduced and limited volume to enable the two countries to boost their own productivity before 2011.

The main goal of the G-3, which was founded in 1989, is to deepen the historical ties between the three countries in areas like politics, economy and trade.
 

Venezuela withdraws ambassador from Panama
Venezuela announced on Friday night it would withdraw its ambassador from Panama and that President Hugo Chavez will not attend the inaugural ceremony of Panama's President-elect Martin Torrijos.

The Venezuelan Foreign Ministry said the withdrawal was in protest of Panamanian President Mireya Moscoso's statement that she pardoned four Cuban exiles linked to assassination plots against Cuban leader Fidel Castro for fear that they might be sentto Venezuela and executed.

The move came one day after Cuba, a close ally of Venezuela, broke diplomatic relations with Panama because of the pardons.

Panama's president-elect Torrijos criticized the pardons and said he would work toward normalizing ties with Havana after taking office.

Venezuelan Ambassador Flavio Granados told reporters that he was recalled because of Moscoso's "offensive statements."

Granados confirmed that Chavez had canceled a planned Sept. 1 trip to Panama to attend the inauguration of Torrijos, Moscoso's successor.

On Thursday, Moscoso said she pardoned the four "for humanitarian reasons."

"We know that if they stay (in Panama), they might be extradited to Venezuela or Cuba, where I am sure they would have killed them," she said.

In response, Granados said that "in Venezuela, we respect life and the death penalty is prohibited. We categorically reject and repudiate those statements."

However, he said the two countries would continue to maintain diplomatic relations.
 

Panama's Torrijos rejects pardon to 4 Cuban exiles
Panama's President-elect Martin Torrijos on Friday condemned the pardon granted by outgoing Panamanian president to four anti-Castro Cuba-Americans and vowed to take measures to resume diplomatic ties with Cuba. "In accordance with our goal of keeping respectful and cordial relations with all countries of the world, as of Sept. 1 necessary steps will be taken for a prompt normalization of the diplomatic relations with Cuba," said the president-elect.

Cuba officially broke ties with Panama on Thursday after outgoing President Mireya Moscoso pardoned four anti-Castro activists, Luis Posada, Gaspar Jimenez, Pedro Remon and Guillermo Novo. They were accused by Cuba of trying to kill Castro at a summit in Panama in November 2000.

Torrijos condemned the presidential prerogative and rejected humanitarian reasons called to disown the orders of the Judicial institution, saying pardon should never be granted in cases of terrorism, drug trafficking or money laundering.

Moscoso justified the pardon for "humanitarian reasons" in view of the possibility that the criminals may be extradited to Cuba or Venezuela, "where I am certain they would have been executed," Moscoso said.

Havana also accuses Posada of helping blow up a civilian Cuban air liner in 1976, killing 73 people, and of overseeing the bombings of hotels in Cuba in 1997, as well as "multiple assassination attempts" against Castro.

Posada has denied involvement in that airliner explosion, but once acknowledged overseeing the hotel bombings.

Last Sunday, Cuba threatened to immediately break off ties with Panama if Moscoso pardoned the four exiles. In a response to Cuba's complaints, Moscoso withdrew her country's ambassador from the island this week and ordered the Cuban ambassador to leave. Outgoing President Mireya Moscoso was to hand over the presidency on Sept. 1 to Martin Torrijos.
 

Colombia agrees to extradite paramilitary chief to US
The Colombian government has approved the extradition of a paramilitary chief of illegal right-wing armed group United Self-Defense Forces of Colombia (AUC) to the United States for drug trafficking, Colombian officials said Friday.

Arturo Calderon, who was captured by the Colombian police on Nov. 9, 2003, is considered by the US authorities as the head of drug-trafficking activities of the Libertadores del Sur Bloc, which has cocaine-processing laboratories in Narino department, in southwestern Colombia.

The investigations carried out by the police indicate that Calderon and other AUC members "regularly transport multiple shipments of tons of cocaine aboard boats departing from the Pacific Ocean littoral of Colombia to the United States, with layovers in Mexico."

The extradition petition was made on Jan. 16, 2003 by the Florida Middle District Court of the United States, which wants the pusher for accounts of drug trafficking and elaboration.

So far, the government of President Alvaro Uribe has had 174 persons extradited, mainly to the United States.

Colombia is believed to be one of the largest drug producers in the world. Its major markets are the United States and Europe.