Trump to quit global postal-rate pact over China

Trump’s notice to exit from the Universal Postal Union treaty comes as the White House cranks up the pressure on Beijing to drop what it calls predatory commercial practices.

The administration framed the departure as separate from the trade war that has seen Trump impose tariffs on roughly half of Chinese goods entering the U. S.

The U. S. Postal Service and business groups applauded the action Wednesday.

Under the UPU 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. Trump administration officials say the leg up, granted under a 1969 provision, was intended to promote growth in poor countries. But it remained in place after China became an e-commerce powerhouse.

The deal has allowed the country to flood the U.S. with cheap goods at shipping discounts of up to 70 percent, putting American companies at a disadvantage and straining the U.S. mail system while fueling growth abroad, said Robert Taub, chairman of the Postal Regulatory Commission, an independent federal agency.

A 1-pound package that costs the U.S. Postal Service about $10 to deliver can be mailed from China for just $2.50, according to White House figures.

In the next year, the State Department will aim to negotiate better rates for Americans, the White House said, or choose to walk away from the international body in 2020 after a required oneyear notice period.