International Trade committee  Repeat the question again. On the powdered milk, you said?

International Trade committee  It would be one of the issues. It's not the big elephant in the room. We have a structural surplus, that's what it is. We have a rolling tonnage of powdered milk that we have to either use domestically or there is a certain amount of quota that we can export.

International Trade committee  With the unfettered access?

International Trade committee  No, I'm not going to just say yes.

International Trade committee  So you want me to answer that? The aspect of unfettered access into the EU is based on your submission that the ambassador said we had that. If that is true, that we do have unfettered access, then I will clearly state that if we have unfettered access that is profitable, then I

International Trade committee  The government has handled it very well.

International Trade committee  No.

International Trade committee  I don't know.

International Trade committee  There are more cows in New Zealand than I think there are people.

International Trade committee  They're an exporting nation. Their business is exporting. They will export to wherever they go. That industry is based and founded on that particular way of doing business. To put a container on a boat and move it, for them, I don't think costs that much money. They want it at ou

International Trade committee  No, some people think we're subsidized because of supply management.

International Trade committee  No, if we sell products on an export market below our domestic price, they consider that a subsidy because we're using our domestic price to subsidize an export price. The WTO ruled against that. That's what I—

International Trade committee  My understanding is that is correct. Most of the countries.... Under our system of supply management, there are certain products that we can export but the moment we export them below our domestic price, they are then considered a domestic subsidy.

International Trade committee  My understanding is that's correct.

International Trade committee  I think the key is that there has to be a dollar in it. Obviously reciprocity on trade is a good thing. We can't have a garage sale whereby we're selling off our market without getting some benefit back by way of a profit. I think that's the key here right now. If you're going to