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Trump Withdraws From Postal Treaty in New Front Against China


(Matthew Choi – Politico)

The Trump administration announced Wednesday it will withdraw from a 144-year-old postal treaty, claiming the treaty gives countries like China and Singapore an unfair advantage and floods U.S. markets with cheaper e-commerce packages.

The withdrawal echoes President Donald Trump’s history of accusatory rhetoric against China for manipulating trade by subsidizing its manufacturers. Trump volleyed billions of dollars in tariffs with China over the summer, raising concerns of higher domestic manufacturing costs. A senior administration official said Wednesday that the withdrawal from the postal agreement is not related to the tariffs, but the move is aimed at protecting U.S. manufacturers and the U.S. postal system.

The Universal Postal Union, a body of the United Nations since 1948, allows developing countries to pay cheaper rates when shipping packages internationally, often leaving some of the cost of delivering packages on the postal services of wealthier countries. The policy was initially intended to spur economic growth in poorer countries by connecting them with global markets. Click here to read more.

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