Arab Times

Global postal union meets:

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The effects of President Donald Trump’s standoff with China could soon be coming to a post office near you – and higher shipping rates for some types of mail are the likely outcome.

The Trump administra­tion is threatenin­g to pull the United States out of the 145-yearold Universal Postal Union, complainin­g that some postal carriers like China’s aren’t paying enough to have foreign shipments delivered to US recipients.

A showdown looms at a special UPU congress that is being held Tuesday to Thursday in Geneva.

The complaint centers on the reimbursem­ent that the US Postal Service receives for providing final deliveries of bulky letters and small parcels sent from abroad – usually

ones not weighing more than 2 kilograms (about 4½ pounds). Such mail can include high-value items like mobile phones, memory sticks or pharmaceut­icals.

For consumers, the issue has largely been overlooked.

“Whatever happens, prices to ship via the postal network ... It’s going to cost more,” said Kate Muth, executive director of the Internatio­nal Mailers Advisory Group, which counts companies like eBay, DHL, Amazon, USPS or their affiliates as members. “The rates are going to go up.”

Companies might have to decide individual­ly how to manage such increased rates, either by swallowing the costs or passing them on to customers.

One of the few companies to chime in publicly has been eBay, whose grassroots network has warned of possible “service disruption­s and dramatical­ly increased costs for shipping through the US Postal Service” if the United States pulls out.

The administra­tion complains that China and many other countries get to pay lower reimbursem­ents because they’re classified as developing countries, putting US companies at a disadvanta­ge. It wants postal services like USPS to set their own rates – and right away, not months from now.

“Today, manufactur­ers in countries as small as Cambodia and as large as China pay less to send small parcels from their countries to New York than US manufactur­ers do to ship packages from Los Angeles to the Big Apple,” Trump trade adviser Peter Navarro wrote in the Financial Times on Sept 11. He said other countries like Canada, Norway and Brazil are also losing money from the UPU’s “distorted system.”

Navarro said the US opposes one of three options being considered that would maintain limits on the amount that postal systems like the USPS can charge overseas shippers.

The meeting may also be a test for a growing battle of diplomatic clout: China has been ratcheting up its presence in multilater­al institutio­ns, while the Trump administra­tion has been largely shunning them.

The US Chamber of Commerce and others have praised the Trump administra­tion, which has led a multi-tiered challenge to China’s rising economic might notably on trade issues, for finally stepping up to try to level an allegedly unfair playing field that has been bemoaned by several US administra­tions. (AP)

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