China Regrets US Withdrawal from Universal Postal Union

  • China Regrets US Withdrawal from Universal Postal Union

China Regrets US Withdrawal from Universal Postal Union

President Donald Trump announced that the United States would pull out of an obscure 144-year-old postal treaty, in what looks to be his latest direct shot at China. But China pays only about $2.50 for shipping in the USA, the official said.

Officials added it is actually cheaper to send a package between Beijing and NY than it is to send them between some cities domestically. China on Thursday, Oct. 18, 2018 criticized Washington's decision to leave the United Nations treaty that regulates global postage that comes amid a worsening trade dispute between the world's top two economies.

The National Association of Manufacturers (NAM) praised the decision on Wednesday, calling the treaty an "anti-US manufacturer subsidy".

"This outdated arrangement contributes significantly to the flood of counterfeit goods and risky drugs that enter the country from China", Mr. Timmons said.

"That's costing us about $300 million per year in, in the United States and that's what we're trying to fix", the official said.

The state Department on Wednesday sent a formal notice of withdrawal from the universal postal Union (UPU), the so-called letter of denunciation.

Editor's note: On Sunday, CBS broadcast an interview with US President Donald Trump in which he said China does not have sufficient ammunition when talking about the ongoing trade war.

"It creates huge costs to the USA postal system", which has to charge higher rates to American companies in a cross-subsidy, "so that costs jobs", according to a senior Trump administration official, speaking to reporters on a background briefing call.

Under the treaty's framework it takes a year for a country to withdraw, during which rates can be renegotiated.

After China and the USA imposed 25 percent tariffs on $50 billion on each other's exports, the trade war between the two escalated when Trump added 10 percent tariffs on $200 billion worth of imports on September 17, which is set to be raised to 25 percent from January 1, 2019.

The official described it as an economic distortion that the administration wanted to correct. In order to leave the pact, the United States will have to wait a year, according to treaty's rules. Administration officials said they were assessing rates for other countries and had not made any decisions about whether the policy would extend beyond China.

However, the Trump administration holds deep-rooted suspicions over Chinese geopolitical ambitions and has grilled Beijing on issues pertaining to rising indebtedness among countries involved in the BRI, lack of transparency, and disregard for an open and inclusive approach and sustainable financing.

The pact has always been a source of frustration for presidents of both parties and prompted complaints from small businesses, big retailers like Amazon and shipping giants like UPS. Chinese sellers estimate shipping through the services take 10 to 20 days from China to the U.S.

Years of big-ticket investment projects helped spur double-digit growth in China's gross domestic product, sending the country into position as the world's second-largest economy - trailing only the United States.

"The UPU remains committed to attainment of the noble aims of worldwide collaboration by working with all its 192 member countries to ensure that the treaty best serves everyone", he said in a statement.

The move is also the latest salvo in the US-China trade war.

But the changes could have an even bigger effect on small retailers that have found themselves outgunned and undercut by Chinese competitors.