In 2019, former President Donald Trump confronted the Universal Postal Union over China’s unfair postage. His resulting victory increased US packet rates by an average of 50% in July 2020. Ten months later, Parcel Hero asks, “Will UPU reform be a positive legacy of Trump’s tenure?”
In 2019, the United States confronted the Universal Postal Union (UPU), the governing body of all international postal services, to raise China’s solid postage to the United States. President Donald Trump then threatened to leave the organization nearly 150 years ago unless he voted to raise China’s payments for access to the postal system in the United States and other countries.
International shipping specialist Parcel Hero The dramatic meeting in September 2019 resulted in a “noon” style confrontation between the United States and the UPU, threatening to break postage agreements around the world. At the event, Trump’s team won the day. As a result, on July 1, 2020, the cost of small packages arriving from China increased significantly.
David Jinks MILT, Head of Consumer Research at Parcel Hero, said the move could have a positive impact on long-standing international e-commerce, even if it was Trump’s typical “America First” policy. It states that it is highly sexual.
David said: “Importantly, other Western countries, including the United Kingdom, will also be able to renegotiate the fees that other countries, including China, will pay to access the postal system. This will have a lasting international impact. Helps level the competition for online traders in the UK and Europe.
“In his first 100 days, President Joe Biden signed 24 administrative measures that would directly reverse Trump’s policies: these were suspensions of funding to Trump’s border walls, primarily Islam. Includes the withdrawal of travel bans in the country and the cancellation of the Keystone XL pipeline. However, UPU reforms are likely to stand as a lasting legacy of Trump’s tenure.
“Under the previous UPU contract, there is no doubt that Chinese sellers had an unfair advantage over Western e-commerce sellers. Despite becoming the second wealthiest country in the world, for 50 years I received an amount equivalent to a Third World fee subsidy.
“US e-commerce traders are at a significant disadvantage due to pricing. Surprisingly, it’s better for a Chinese seller in Shanghai to mail an earring packet to New York, but for a neighboring US seller in Pennsylvania to have the same packet. Was cheaper than sending to the same address.
“Trump’s high-risk strategy was to force other UPU member states to allow the United States to set its own postal access rates for small packages arriving in the United States. All countries scrubbed to set their own rates, which would have led to the complete collapse of the international postal system.
“Trump’s Gambit won the day and the first phase of the resulting reforms was introduced 10 months ago. Logistics costs for exporting parcels from China to the United States between 2020 and 2025. Is expected to increase by 164%.
“For the United States, the victory has already paid dividends. Katherine Muth of the United States-based International Mailers Advisory Group said Financial Times In December, the USPS had already raised its inbound rate by an average of about 50%. This has “significantly reduced the amount of inbound parcels.” Especially from China, which sent about half of all packages.
“Chinese sellers agree that it had a significant impact. Shanghai-based businessman Bai Haitao sells to the United States and Europe under the Vastsee trade name, he said in March. Marketplace.org Before it increased, at peak times he sent more than 10,000 small parcels to the United States a day. After the introduction of new charges, he revealed that the cost of sending a necklace from a warehouse in Shanghai to the United States went from just a penny to more than $ 1. For products such as headphones, logistics costs are doubled or tripled. His company’s sales were cut in half from 2018 sales as it had to pass on additional costs to US consumers.
“But near home, there is a price to be paid for Trump’s reforms. New US postage will be gradually increased over the next few years, affecting all countries, not just China. Probably, UK sellers who use traditional UK post office services to send up to 2kg of economy mail may be charged more once the service uses the US Postal Service (USPS) in the United States. However, express courier services available through Parcel Hero must be unaffected by the new rates.
Trump pushed for UPU reform. Ten months later, his controversial policy seems to stay.
Source link Trump pushed for UPU reform. Ten months later, his controversial policy seems to stay.