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Home / US / Trump grabs 144-year-old postal contract that drives Chinese retailer

Trump grabs 144-year-old postal contract that drives Chinese retailer



President Trump has withdrawn on Wednesday from a 144-year-old international postal agreement that allows companies in China to send small packages to the United States at a hefty discount, an order that rivals foreign competitors, according to government officials US Post Costs Service About $ 170 Million Per Year

Trump's withdrawal from the World Postal Union (UPU) treaty comes as the White House increases pressure on Beijing to drop its predatory business practices and take over trade secrets from American companies

"This is a long-standing, protracted problem," said Robert Taub, chair of the Postal Regulatory Commission, an independent federal agency.

The administration framed the departure as being separate from the One Trade War, in which Trump fined about half of Chinese goods imported into the United States.

The End of the Postal Treaty, First Ratified In 1

874, tensions with China are likely to be exacerbated, but the Post and Corporate Groups welcomed the action on Wednesday.

"The current system has resulted in the United States subsidizing imports of small packages from other countries," said Jeff Adams, spokesman for the US Postal Service

under the contract, which charges national postal operators in 192 countries For the postal delivery service, the US Postal Service charges China-based companies at severely reduced prices for packages weighing under 4.4 pounds

Trump administration officials say that the leg was granted after a provision of 1969 for growth in poor countries. But it persisted after China became an e-commerce powerhouse.

The deal allowed the country to flood the US with cheap goods at shipping discounts of up to 70 percent, penalizing American companies and straining the US Post while growing abroad Taub said.

That resulted in losses of $ 170 million for the postal service last year.

"They use our postal service and do not contribute to overheads and Americans have to pay for it," he said.

A one-pound package that costs the US Postal Service about $ 10 can be shipped from China for just $ 2.50, according to the White House. The US wants to bring about the pact – a one – year process according to the rules of the United Nations. Englisch: emagazine.credit-suisse.com/app/art … = 263 & lang = en.

During this period, the State Department will seek to negotiate better quotas for the US American White House said, or decide to leave the international body in 2020.

UPU General Director Bishar Hussein said in a statement on Wednesday that he "regretted the decision" and welcomed the opportunity to continue speaking with US officials. "The UPU remains committed to achieving the noble goals of international cooperation by working with all its 192 member countries to ensure the treaty is the best for all," he said in the statement.

The mail contract annoyed the leaders of both parties before Trump took office, Taub said. The Reagan administration pushed for change with few results and a government report from 2015 warned that foreign mail was putting pressure on the American postal system .

Singapore and European countries also benefit from the agreement China developed rapidly as it developed over the past decade into an e-commerce powerhouse with the world's largest online retail market, with annual sales of approximately $ 354 billion.

Small packages from China to the US rose 182 percent between 2011 and 2011 According to the latest figures from the US Postal Service (2012)

Sean Heather, vice president of the US Chamber of Commerce Center for Global Regulatory Cooperation, praised the US Chamber of Commerce Government step to negotiate higher rates for China and other countries.

"American companies should no longer pay for parcel delivery in the United States, as what the US Postal Service is collecting to deliver overseas packages," he said in a statement.

But some analysts took off the move on Wednesday. Derek Scissors, who studies China at the American Enterprise Institute a right-wing think tank, said that Trump's announcement did not weigh much in comparison to his September promise which he vowed to impose to do in September. After Beijing imposed new tariffs on American imports of $ 60 billion, Trump said he would raise effectively higher taxes on all in the US with additional royalties of $ 267 billion on Chinese goods China.

So far, this plan has not come about.

"It's a trick to distract attention from the fact that the president promised more tariffs last month and does not want to trade," Scissors said. 19659027] A stronger approach to securing better prices for the US would also include other developed countries such as Norway which also bear a disproportionate burden by the UPU Pact said Blaine Johnson, a China analyst at the Center for American Progress, a left-leaning think tank.

"Threats to withdraw could indeed be counterproductive," she said, "as the US allies may seek more consensus approximation."


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