Trump to withdraw USA from global postal treaty

Mr Pascal Clivaz the Deputy Director General of the UN UPU

The United States has announced plans to withdraw from a 144-year-old postal treaty, which the White House says lets China ship goods at unfairly low prices.

The treaty sets fees that national postal services charge to deliver mail and small packages from other countries, and gives poor and developing markets lower shipping rates than developed nations.

Other shipping options from companies like FedEx Corp., United Parcel Service Inc. or DHL Worldwide Express range from $40 to $60, raising the cost of the cheap trousers so much that a buyer might as well get them from a store or seller in the U.S.

The US says the discounts put American businesses at a disadvantage.

"Zhao Quansheng, director of the Centre for Asian Studies at American University in Washington, said in Beijing that Trump needed a chance to "declare victory" in the trade war to the American people, while China would find it easier to compromise on trade rather than on more sensitive issues like Taiwan".

President Trump said he did not think China was ready to restart trade discussions. While the agreement is meant to give Asian and African countries incentives to develop their economies, China has used the discounted rates so effectively that it now accounts for 60 percent of the packages sent to the U.S. "If you look at China they're down United States dollars 20 trillion and we're up USD 11.7 trillion in worth, that's a tremendous number", he said. Over the one-year notice period, the State Department will try to negotiate better rates for Americans or choose to walk away from the global body in 2020, the Washington Post reports. It also comes amid an escalating trade dispute between Beijing and Washington that has resulted in US imposition of tariffs on about $250 billion worth of Chinese goods and the Chinese retaliating with similar punitive taxes on about $110 billion in American products.

The official described it as an economic distortion that the administration wanted to correct.

According to another senior administration official, there are 40 to 70 per cent discounts on packages from China to the United States compared to what it would be to send them domestically. The treaty was last modified in 2016 to raise some shipping costs on Chinese exports.

In a radio interview on October 12, Trump's National Security Adviser John Bolton signalled further aggressive measures against China across the board. Trump said the prepared to withdraw from the treaty if negotiations are not successful by early 2020.

"Manufacturers and manufacturing workers in the United States will greatly benefit from a modernized and far more fair arrangement with China", Timmons said in a statement.

Neither the White House nor China's foreign ministry have released details of the leaders' schedules for the G20 summit. "No, because they've had - they've made too much." he said as he went to explain that Chinese have benefited a lot from the current trade relationship with the USA and that is why they do not want any change.

But the report says that six nations - China, Germany, India, Japan, South Korea and Switzerland - will remain on a watch list subjecting them to added US pressure to lower trade surpluses.



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