Chile is a case in point. This happened because Chile already has trade agreements in place with Mexico, Canada, and the Mercosur countries. It is possible that Chile may strike a similar deal with the European Union next. There are fabric manufacturers in Mexico, Canada, the Mercosur countries and the European Union. They are Quaker's competitors.
Quaker has customers in Chile.
So do they. But to do that, Quaker's customers in Chile had to be convinced that our products were so good that they were worth the extra eleven percent duty required to bring them into Chile - eleven percent that is not a factor for our Mexican, Canadian, or Mercosur competitors. In the balance of Latin America, the situation is no different. For example, there is an active and important fabric and furniture manufacturing industry in the Mercosur countries. On its own, Quaker can compete successfully on the basis of design, quality and service with any of its Mercosur counterparts.