The US has announced plans to withdraw from 144 year-old postal treaty, which the White House says allows China to ship goods at unfairly low prices.
The UN 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 say they hope the notice of withdrawal will set the stage for a better deal. The bid to overhaul the Treaty is part of US President Donald Trump’s combative “America First” approach to trade, which has led to tariffs on billions of dollars in goods, attacks on existing trade treaties and criticism of multilateral agreements. He has frequently singled out China, which exports more goods to the US than any other country.
Officials said the discounts strain the finances of the US Postal Service, facilitate the shipment of counterfeit goods and distort pricing within the US, leading to higher fees for domestic companies.Due to lower rates, foreign packages cost the US about $300m (£228.5m) each year, according to administration estimates.
