Trump Yanks US Out of Deal That Gave China Big Shipping Discounts

Frederick Owens
October 20, 2018

That lets Chinese vendors unfairly compete with US vendors who have to pay ordinary USA shipping rates to get their goods to customers, Trump argued in an August memorandum.

Rates set by the Universal Postal Union, an arm of the United Nations described by Planet Money as a "postal illuminati", allow merchants to ship packages under 4.4 pounds to US customers more cheaply from China than from USA warehouses, officials said.

Pascal Clivaz, deputy director-general of the Switzerland-based Universal Postal Union, says the agency reached out quickly to U.S. officials after receiving a letter from U.S. Secretary of State Mike Pompeo this week announcing Washington's plan to pull out of the union in a year if the treaty isn't renegotiated.

It was also adopted against the backdrop of escalating trade disputes between Beijing and Washington that led to the imposition of USA duties on imports from China at a cost of approximately $ 250 billion, to which Beijing responded with similar tariffs on American goods worth $ 110 billion. According to the Financial Times, the cost to mail a 4.4-pound package within the United States is $19 to $23, while China Post pays just $5 to ship a similar package to the United States.

"So, it's hard for them to do a deal, because they've had it so good for so long; it's a very hard thing for them to do", said the United States president when asked why he told the Chinese that they are not ready for a trade deal yet. Trump said the prepared to withdraw from the treaty if negotiations are not successful by early 2020. Webstainless offers free shipping to the U.S.

The rise of worldwide online shopping has resulted in an increase in small packages being sent via the postal system, and United States firms say it can now cost more to post an item within the USA than it does to send a similar item from Shanghai to the US.

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In a radio interview on October 12, Trump's National Security Adviser John Bolton signalled further aggressive measures against China across the board. The subsidies, which were reduced to make such deliveries 13 percent more expensive at the start of 2018, cost the States USD300 million a year, several foreign media outlets cited a senior White House official as saying on a conference call.

Collier raised the possibility of municipal government defaults, which he described as "more or less unheard of in China".

Tribune. The objective of the trade war initiated by the administration Trump against Beijing is not clearly defined, but it appears from the charges levelled against China, accused of "not playing the game" and resorting to unfair methods.

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

In a report issued Wednesday, the Treasury Department said no country meets the criteria to be labeled a currency manipulator. The Bush administration reportedly shifted the focus of United States missile defense plans from Europe to the Pacific and called for long-range weapons targeting China's growing military power.

During the 2016 presidential campaign, Trump vowed to name China a currency manipulator as soon as he took office. New rates will take at least six months to take effect.

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