Cheap global shipping may disappear due to Trump's latest move

Pool  Getty Images AsiaPac

Pool Getty Images AsiaPac

President Donald Trump argues that the 144-year-old Universal Post Union benefits China and other countries at the expense of U.S. businesses - making it cheaper to ship packages from Beijing to NY than from San Francisco to the U.S. East coast, which particularly benefits Chinese manufacturers. The State Department will deliver a notice to the Universal Postal Union in Switzerland Wednesday, White House Press Secretary Sarah Huckabee Sanders said in a statement.

They argued that the treaty allows foreign postal services, especially in China but also in Germany, to take advantage of cheap shipments to the US. Online shoppers in the United States have often benefited from the arrangement, gaining access to foreign goods at little cost.

The State Department report revealed insufficient reforms in the UPU in line with the U.S. policies outlined in Trump's memorandum in August.

Trump generally hasn't been shy about criticizing and rejecting worldwide agreements he feels disadvantage the United States, from NAFTA to North Atlantic Treaty Organisation.

Officials added it is actually cheaper to send a package between Beijing and NY than it is to send them between some cities domestically.

Trump has also withdrawn the U.S. from UNESCO and the United Nations Human Rights Council and pulled USA funding for the UN agency for Palestinian refugees.

Twitter reacts to ugly start to Sixers-Celtics game
In a rematch of last season's second-round playoff matchup, the Boston Celtics welcomed the Philadelphia 76ers to the TD Garden . Irving is entering his second year with the Celtics and will play in the season opener against the Philadelphia 76ers tonight.

The White House has said it will notify the union on Wednesday that it is beginning the year-long withdrawal process, though senior officials said their end goal is not to withdraw, but rather to renegotiate fairer rates.

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

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

The UPU treaty gives lower mailing rates to poorer countries, including China, which Trump and other critics say has let China flood the USA with dirt-cheap electronics and other goods, often sold online for rock-bottom prices with shipping included.

Officials said a number of countries were benefitting at America's expense, especially China, with which the USA has been engaged in a protracted trade war under the current administration. "All parties should pay the same parcel delivery rates for the same services from the U.S. Postal Service, regardless of whether the country of origin is foreign or domestic". Amazon declined to comment.

The National Association of Manufacturers supported Trump's move, calling the UPU "outdated" in the age of e-commerce.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.