The formal notification, known as a letter of denunciation, to withdraw from the Universal Postal Union (UPU) is being sent by the State Department in response to what the administration of President Donald Trump views as an unfair advantage primarily for China, but also for such other countries as France and Germany, in online commerce.
"Such drastic action by Beijing will only embolden Trump to impose tougher measures against China, since Beijing appears unwilling to compromise for the time being", he warned.
Chinese goods coming into the U.S. are now subject to lower postage rates, making it cheaper to ship items into America.
He has frequently singled out China, which exports billions of goods to the United States each year.
Over a year and a half ago, Donald Trump pulled the USA out of the Trans-Pacific Partnership, a 12-nation multilateral deal with many countries in China's neighborhood that was specifically designed, in part, to provide an alternative market to China.
The New York Times reported today that President Trump plans to withdraw from the UPU (Universal Postal Union) treaty.
The interesting aspect of the UPU decision is a more recent addition to the agreement.
Under the treaty, which sets fees that national carriers in 192 countries charge for mail delivery, the U.S. Postal Service bills China-based companies at a sharply discounted rate for parcels that weigh less than 4.4 pounds. And it could crimp shipments of cheap goods from Chinese manufacturers directly to US consumers - a practice that many USA retailers and small businesses say hurts them. The provision is created to help facilitate exports from smaller countries to give a boost to growing economies. It will also affect companies based outside of the United States that ship to U.S. customers.
The deal has allowed the country to flood the United States with cheap goods at shipping discounts of up to 70 percent, putting American companies at a disadvantage and straining the US mail system while fueling growth overseas, Taub said. The first is that China is not the only one to "cheat" in relation to the market economy. The wild, unsubstantiated accusations are meant to justify the Trump administration's "whole-of-government" strategy aimed at undermining what it regards as a risky strategic competitor, at any cost. It also said the cheaper rates incentivize the purchase of knock-off or counterfeit goods from China. China joined the UPU in 1914, when its economy was nearly entirely agrarian.
The group said the discounts amount to a subsidy for Chinese shippers that cost the U.S. Postal Service $170 million in 2017. The move is the latest development in the country's ongoing trade war with China, one of the treaty's top beneficiaries.
The highlights of that trade fight have been the tariffs each country has slapped on the other. Trump previously has announced tariffs against Chinese goods estimated to be worth $250 billion. "China never wanted a trade war, but if somebody started a trade war against us, we have to respond and defend our own interests". "What was troubling was the growing sense that there are no short-term resolutions to the China-U.S. conflict", it said.
"If the USA can quickly take a positive direction with other trading partners and the friction is only a U.S".