President Trump’s administration formally initiated withdrawal proceedings from an international shipping agreement that it feels gives China and others an unfair advantage.
Two senior administration officials told reporters Wednesday that the State Department initiated the withdrawal process from the Universal Postal Union, a sub-agency of the United Nations that organizes postal service policies across member countries. On the domestic front, the Trump administration is going to begin the process of self-declaring postal rates.
Manufacturers have long complained that the UPU’s rules allow packages of up to 4.4 lbs to be shipped from certain countries at the same rate for flat mail and this has allowed foreign companies to undercut U.S. competitors. Among the countries that get this preferred rate is China, a policy set up in 1969 when its economy was still developing. White House officials estimated that this rate has amounted to a $300 million annual subsidy.