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Eugene

(61,945 posts)
Wed Oct 17, 2018, 04:23 PM Oct 2018

Trump launches process to quit 144-year-old postal treaty

Source: BBC

1 hour ago

The US 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 United Nations treaty sets lower international rates for packages from certain countries, a move originally designed to support poorer nations.

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

Officials said they hope the notice of withdrawal will set the stage to agree a better deal.

-snip-


Read more: https://www.bbc.com/news/business-45894346

20 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies

harumph

(1,913 posts)
9. Even a stopped clock is right twice a day.
Wed Oct 17, 2018, 04:41 PM
Oct 2018

While 99% of Trump's decisions are crazy with a capital 'C' ... this is one of the 1%.
I sympathize with your reaction to T's bullshit. However, Chinese shippers have abused the agreement which is the reason that if a domestic shipper (say selling on Amazon - and operating in the Midwest) pays a higher postal rate than a Chinese shipper to send identical packages to e.g., a Florida address. It's a scam - and I know this b/c I order small items from Amazon and Ebay from Chinese shippers and the marked postage is like 20 cents. You would pay much more than that to mail the same package domestically. It's a fucked system.

I would eventually like to start a small business which will mean shipping small articles domestically and since Chinese suppliers
effectively pay so little postage - the current agreement gives them an unfair advantage over me.

kiri

(796 posts)
18. I agree. After 144 years, it is time to review and adjust.
Wed Oct 17, 2018, 10:54 PM
Oct 2018

I agree. After 144 years, it is time to review and adjust.

Damn shame it is Trump doing it.

madville

(7,412 posts)
20. They should either renegotiate or withdraw
Thu Oct 18, 2018, 08:19 PM
Oct 2018

Level the playing field. Making it more expensive or charging the true cost to ship goods from China can make it more economical to potentially bring some manufacturing back here and create jobs.

BamaRefugee

(3,487 posts)
14. According to the link, Palestine has special "observer" status...
Wed Oct 17, 2018, 04:54 PM
Oct 2018

I guess they get to watch their mail being destroyed or stolen

Freethinker65

(10,048 posts)
4. ?? I do not know enough about this.
Wed Oct 17, 2018, 04:34 PM
Oct 2018

This might be one of those things like the Canadian milk subsidies, where Trump is/was technically correct.

Of course the reason he is bringing it up is to make threats and look like the tough guy saving U.S. businesses money...while the GOP goes along with further tax cuts for the wealthy/corporations and proposes cuts to Social Security and Medicare. He really does not care about doing the right thing if there is not something in it for him personally.

iluvtennis

(19,871 posts)
7. This just gets more and more disturbing. Illogical that this puts American businesses
Wed Oct 17, 2018, 04:35 PM
Oct 2018

at a disadvantage. American business ship domestically not from overseas.

I depend on those low product prices items from China that I find at Walmart/Target/etc - helps give my family new things we wouldn't otherwise be able to afford.

harumph

(1,913 posts)
12. it's complicated.
Wed Oct 17, 2018, 04:48 PM
Oct 2018

I'm not defending Trump. However, the current system actually puts American shippers at a disadvantage. The problem is that if I ship a 6 oz package to Topeka from Maryland, I'm going to pay a higher postal rate than a Chinese supplier sending the same
package to Topeka from Shanghai. In effect, the low postal rates for the Chinese are subsidized by American businesses.

iluvtennis

(19,871 posts)
15. So if American businesses are subsidizing the Chinese shipments, go after the American businesses
Wed Oct 17, 2018, 04:55 PM
Oct 2018

Why all of this rhetoric to paint the Chinese as "bad ppl". China businesses working on behalf of partnerships with American businesses. Go after the American businesses.

Welcome to DU

RVN VET71

(2,697 posts)
10. Oh, for christ's sake!
Wed Oct 17, 2018, 04:43 PM
Oct 2018

2016 was the last year of America as a free and decent nation. As she continues to decline into the chaos of corporate fascism, those of us who didn't vote for the bull sputum (by which I mean Trump and every goddam Republican in every goddam office) can only shake our heads and shed a tear for what once was and what might have been had rational, intelligent people wrested control from the Party of heartless greed and bigotry.

KY_EnviroGuy

(14,494 posts)
16. Got some bad news for tRump....
Wed Oct 17, 2018, 06:08 PM
Oct 2018

Most of the products shipped from China under these low shipping costs can't be bought in the USA and if so, the companies are just importers that add a layer of profit plus the cost of warehousing the goods.

The fundamental problem is that Chinese goods are far cheaper than comparable American-made products even it they're available. Most are not even available from American manufacturers any more, after globalization took full-hold. That's an irreversible process that started in the 60s and if China doesn't do it, other countries will. So, jacking up the shipping cost on the US side of the shipping route will simply add costs to American consumers.

Since a large number of these product sales are executed via Amazon and other pass-through on-line sites, it would not surprise me if this is simply another attack on Amazon.

So, bottom line is that China's prices on both products and shipping are far too low for the US to compete. Until we have reasonable equality in global labor costs, that will be what we live with.

...........

mahatmakanejeeves

(57,600 posts)
19. There was a hearing on this three years ago, so this is not something ***** just dreamed up.
Thu Oct 18, 2018, 01:05 PM
Oct 2018

Just about anything I would get that originated in China would get here on a container ship. I can't think of anything that would get sent from China through the mail.

TECHNOLOGY

The End of Cheap Shipping From China

The White House wants to put an end to low-cost shipping from overseas, a move widely supported among U.S. e-commerce sellers.

ALANA SEMUELS
OCT 17, 2018

Every day, Americans buy tens of thousands of cheap products from China—jeans, electronics, things made of plastic. Two months ago, I even bought a wedding dress.

We buy stuff from China mostly because the low cost of living and lax labor regulations allow manufacturers to make products cheaply there. But there’s another reason, too. It’s really cheap to send stuff from China to the United States, which means sellers there can charge barely anything to ship an already-cheap item 6,000 miles across an ocean. Want an eyebrow razor? On Wish.com, a site that sells products directly from China, you can buy one for 95 cents, plus a $2 shipping fee. A similar eyebrow razor on Walmart.com, by contrast, costs $2.62 for a three-pack, but there is a shipping fee of $5.99. According to congressional testimony, at current rates, shipping a parcel to Fairfax, Virginia from North Carolina would cost $1.94. From Shanghai, it’d be $1.12.

President Trump has vowed to alter this equation, announcing on Wednesday that he is instructing the U.S. Postal Service to levy higher fees on packages from international destinations, including China. The announcement was not very controversial: A variety of parties involved in e-commerce, from Amazon to U.S. small businesses, to sellers on eBay, have been calling on the United States for a long time to charge more for delivery on behalf of foreign postal carriers. The changes could help U.S. small businesses better compete against Chinese merchants, while also slowing the flow of counterfeit goods shipped cheaply from overseas.
....

[House Hearing, 114 Congress]
[From the U.S. Government Publishing Office]
....

FAIR COMPETITION IN INTERNATIONAL SHIPPING

----------


Tuesday, June 16, 2015,

House of Representatives,
Subcommittee on Government Operations,
{C}ommittee on Oversight and Government Reform,
Washington, D.C.

The subcommittee met, pursuant to notice, at 2:23 p.m. in room 2154, Rayburn House Office Building, the Honorable Mark Meadows [chairman of the subcommittee], presiding.

Present: Representatives Meadows, Walberg, Massie, Buck, Carter, Grothman, Connolly, Maloney, Norton, Clay and Plaskett.

Mr. Meadows. The Subcommittee on Government Operations will come to order.

Without objection, the Chair is authorized to declare a recess at any time.

The Ranking Member, Mr. Connolly, will be coming shortly. When he comes, we will allow him to give his opening statement.

Today, through the United States Postal Service, it is often cheaper to ship a small package from China than to ship that same package within the United States. Intuitively, this does not make a lot of sense as the nearest coast of China is more than 5,000 miles away from the United States across a very large body of water.

A simple search of any one of a dozen or more websites helps to illustrate the issue. In searching this topic, the Committee staff found numerous examples where small, lightweight goods from China could be purchased, delivered, shipped and with shipping included, at unbelievable prices such as 99 cents for a stylus pen or $1.58 for lipstick.

Prices like these cause the Postal Service to lose money on at least some of this international mail. In fact, the Postal Service lost some $75 million on inbound international mail last year alone.

However, this loss is not necessarily the Postal Service's fault. International mail rates are largely governed by a treaty drafted through the Universal Postal Union, a United Nations organization with over 192 member countries.

This treaty covers the establishment of what they call terminal dues or the amount of money that one post gives to another post for the final delivery of that international mail. Every four years, the UPU negotiates a new treaty, the most recent of which will run through 2018. The stated goal of these negotiations is to eventually create a system that accurately reflects the cost of final delivery in each country.

{snip, as it goes on}
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