Usps China Post Agreement

For more than a century, postal services in different countries have agreed, through the World Postal Association, to deliver postal items from another country. This service was previously free until a 1969 update required postal services to pay each other “terminal fees” – fees for the delivery of mail from another country – depending on a country`s development: countries whose postal services were still in transition could charge high fees, while developed countries such as the United States had to pay low fees. In 2006, a new law allowed the United States to enter into bilateral agreements with foreign posts and, for the most part, to agree on its own final remuneration. What you overlooked was that the Chinese government could only subsidize postage rates. Of course, USPS could charge china post plus, but not all (or zero) of this increase could be transferred to their customers in China. No increase in user prices makes a difference and the GOC only subsidies exports. The Chinese government could subsidize shipping costs (at least temporarily to support the transition). I wouldn`t be surprised if it was about $5 per package, millions of packages. So far, you, you, and the rest of the U.S. have subsidized it, and the customers who have had to be more numerous for domestic shipping to keep the Chinese e-package cheap for shipments from China.

Under current rules, these fees (called final taxes) are ridiculously reduced for some countries, including China. (For example, under UPU rules, China, the world`s second-largest economy, gets the same tax savings as Gabon and Botswana.) This means that the USPS China Post actually calculates less to deliver a package from China to the U.S. than it calculates for a U.S. company or customer to provide a package of similar size in all 48 states. Swiss Post loses money for every parcel it delivers from China – costs it has to pass on to its own American customers, not to mention American taxpayers. The fourth, and most likely, outcome is when the UPU trembles and makes concessions to the world that prompt the US to stay in the treaty. Prices, especially for small Chinese packages, could rise in order to stem complaints from U.S. merchants who are unfairly disadvantaged by current shipping costs. An upU response with concessions avoids the need to update the way international mail is sent to the U.S., as well as the need to negotiate and vote on a number of new postal contracts.