In anti-China move, Trump administration pulling out of postal treaty

WASHINGTON — The United States announced Wednesday that it is preparing to pull out of an international postal treaty that allows China to ship packages to America at discounted rates. The move would escalate a trade dispute with China.

President Donald Trump argues that the 144-year-old Universal Post Union benefits China and other countries at the expense of U.S. businesses — making it cheaper to ship packages from Beijing to New York than from San Francisco to the U.S. East coast, which particularly benefits Chinese manufacturers. The officials say the treaty is used by shippers of the narcotic fentanyl to the U.S. from China.

The U.S. is willing to renegotiate the treaty over the next year but will leave the union if no agreement can be reached, the officials said.

Bishar Hussein, director of the Universal Postal Union, said he regrets the U.S. decision and will seek a meeting with American officials.

“The UPU remains committed to attainment of the noble aims of international collaboration by working with all its 192 member countries to ensure that the treaty best serves everyone,” he said in the statement.

The move was welcomed by the U.S National Association of Manufacturers, which called the exiting postal pact “outdated” in the age of ecommerce and at a time of Chinese manufacturing dominance. “Manufacturers and manufacturing workers in the United States will greatly benefit from a modernized and far more fair arrangement with China,” Jay Timmons, president of the manufacturers association, said in a statement.

The U.S. and China are already locked in a trade war. The United States has imposed tariffs on about $250 billion in Chinese goods, and Beijing has responded by targeting about $110 billion in U.S. products.

Mr. Trump also views new bilateral agreements as a way to contain Beijing’s growing economic, geopolitical and territorial ambitions. The White House gave formal notification to Congress this week that it would begin trade talks with Japan, the European Union and the United Kingdom. And the administration also has its sights on free trade agreements with the Philippines and Vietnam, as part of its effort to fence in China with agreements in its backyard.