Published: Mon, October 22, 2018
Global | By Enrique Rogers

Trump decision on postal treaty welcomed by United States retailers and manufacturers

Trump decision on postal treaty welcomed by United States retailers and manufacturers

It cost the USA company $6.30 to ship by regular mail from New Jersey, the company CEO Jayme Smaldone wrote in February. "That's costing us about Dollars 300 million per year in - in the United States and that's what we're trying to fix", the official said.

Under the current UPU system, a one-pound package shipped by a US business costs between $10 to $13. Chinese companies take advantage of the lower rate to ship packages into the US for cheap, allowing for as much as a 70 percent discount on small packages arriving from the country, according to officials. Because every nation has a different postal system, and because every postal system has a different set of rates that it charges for parcels of various sizes and weights shipped over different distances, the UPU provides an alternative to the complicated process of determining the exact fee for every package shipped across worldwide borders.

While the yearlong withdrawal from the 144-year-old Swiss-based organization is underway, the United States will seek to renegotiate rules for parcel rates.

The United States intends to withdraw from the International Postal Union with 192 countries. "All parties should pay the same parcel delivery rates for the same services from the US Postal Service". Since 1969, poor and developing countries - including China - have been assessed lower rates than have wealthier countries in Europe and North America. What's more, withdrawing unilaterally would free other countries to charge even more than they do now to deliver packages sent from the U.S.

However, this step to withdraw from the postal union might have a positive impact on the fight against Chinese counterfeits.

"If negotiations are successful, the Administration is prepared to rescind the notice of withdrawal and remain in the UPU", said the White House.

Texas woman caught on video abandoning toddler at stranger's front door
Officers were told the father understood the boy was going to be dropped off at his home by a friend of the boy's mother. According to The Associated Press , the boy's father lives next door to the home where the woman left the child .

As a result, mail services from China to the USA cost less than Americans are charged by their postal service for a comparable domestic delivery.

USA officials say they will be willing to renegotiate the postal treaty over the next year but will leave if no agreement can be reached.

Others warned that United States companies that depend on small components shipped from China could see costs rise.

"As we speak, Beijing is employing a whole-of-government approach, using political, economic, and military tools, as well as propaganda, to advance its influence and benefit its interests in the United States", Pence declared.

China's Ambassador to the U.S. Cui Tiankai told "Fox News Sunday" host Chris Wallace that there is no trade war between the two countries, but then seemed to contradict himself by claiming America started it.

A statement from the White House press secretary issued October 17 said that the Department of State has recommended the United States "adopt self-declared rates for terminal dues as soon as practical, and no later than January 1, 2020". The US is classified as a "target" country and China as a "transitional" country. But so far, the administration has passed up four opportunities to do so in a report that the administration is required by law to deliver to Congress every six months.

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