US threat to withdraw from postal treaty calls for urgent talks



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GENEVA – Emergency talks began on Tuesday as delegates from almost 150 countries tried to prevent a massive disruption of international postal services that could occur if President Trump removed America from a UN agency regulating mail services for more than a century .

The United States threatened to leave the body, the Universal Postal Union, after October 17 if its members did not change the tax system that postal services impose on the collection and delivery of mail and small parcels.

The Trump administration is particularly concerned about the sliding scale of fees that allows China, the world's second-largest economy, to take advantage of the lower rates offered to developing countries. These fees, in place since 1969, have been modified and partially lifted in 2016, but the administration has argued that the amendments do not go far enough.

As a result, it remains cheaper for manufacturers in countries like China and Cambodia to send a small package to the United States than for US companies to ship from Los Angeles to New York, the source said. Peter Navarro, commercial advisor to Mr. Trump.

Bishar Hussein, the Universal Postal Union General manager, said that he thought the withdrawal of the United States would be anything but transparent. His departure would mean "the total destruction" of existing services to the United States, he told the press.

The United States would be excluded from the services and could not use the existing international mail processing codes. Washington would also be forced to negotiate new agreements covering postal and customs services with other 191 members to replace those currently in place in the union, he said.

Its withdrawal would present "a nightmare scenario" for other countries, which would not be able to exchange mail, packages or parcels with US postal services. For consumers, he said, the withdrawal of the United States would lead to large increases in postage costs.

US companies whose business model relies on low-cost shipments, including e-commerce platforms such as Amazon and eBay, could be embarrassed if the United States withdrew.

Democrats Abroad, a branch of the Democratic Party, has expressed concern over the impact for some three million US voters abroad. His website warned that the interruption of services would prevent voters from sending their ballots or their request by postal mail.

As a result of preparations made "by Trump" over the past year, Navarro has dismissed fears of mail chaos.

"We understand very well what we need to do. We are convinced that if we are to leave, the process will be transparent, "he told reporters. "We do not anticipate any disruption of military mail, election mail or holiday mail."

A redesign of the postal system is underway as part of a trade fight between China and the United States. Trump has described China as an economic foe and is looking for ways to prevent economic domination. Navarro said the postal services issue was entirely separate from the wider trade dispute.

A resolution could still happen. Navarro outlined two options that would allow the United States to remain in the union. Washington's preferred approach is to move immediately to self-declared tariffs, which would allow countries to unilaterally decide what they charge. This would cause short-term disruption, he said at the meeting, but "it is the clearest, cleanest, fairest and fastest way to long-awaited reform".

The proposal was also supported by Canada and Brazil, but was rejected by a secret ballot on Tuesday, drawing the meeting's attention to another option.

This option, which, according to Navarro, was broadly acceptable to Washington, would allow the United States to introduce new rates immediately and would leave a five-year transition period from 2020 to other countries for the implementation of the Kyoto Protocol. a new fee schedule.

Mr Navarro said that such a plan "already represents a very important compromise of the United States".

Another option, open to the meeting and supported by China, among others, would maintain the status quo with a modest adjustment.

Mr. Navarro dismissed this option as "non-cynical" that would trigger withdrawal from the United States.

the WE. The Chamber of Commerce is pleased with the prospect of a reform of the postal system.

The Universal Postal Union "should not be responsible for setting prices or establishing preferential customs practices," Sean Heather, his vice president of international regulatory affairs, said in an e-mail. Putting the United States and other countries on the path to setting their own rates is "important to ensure that US exporters compete on an equal footing when they ship their products over." foreign markets ".

Mr. Hussein, despite his fears of major disruption of global postal services, hoped that the Universal Postal Union would at least come out of it. He had gone through two world wars and had adapted to deal with the successive challenges posed by emerging technologies, he told reporters. "I do not think we're going to disappear like this."

Others were not so optimistic. If the US withdrew from the union, a delegate from Moldova said, "I think this is the beginning of the end of the union."

Ana Swanson contributed to Washington reports.

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