Fees paid by China to the U.S. and other countries to deliver packages will nearly triple through 2025 under an agreement by the global postal union following complaints by Washington,
Associated Press (AP) quoted the Chinese post office as saying.
Payments will rise 27% next year and 164% in total through 2025 under the Sept. 25 agreement by members of the Universal Postal Union (UPU), the State Postal Bureau said in a statement.
The Trump administration earlier complained the U.S. Post Office was subsidising Chinese exporters, which it said paid too little to deliver the vast volume of packages generated by online
As a result, Washington had threatened to pull out of the 192-member group, which other members said would disrupt global postal operations.
The U.S. complaint centred on reimbursement for delivering “bulky letters and small parcels,” usually weighing more than 2 kilograms (4 1/2 pounds). They can include high-value items such as mobile phones, memory sticks or pharmaceuticals.
Following an Extraordinary Congress in Geneva at the end of last month where members voted to approve a "compromise proposal" called "Option V", the U.S. decided to remain an UPU member.
A UPU breakup seem to be off the table
Under Option V (for Victory) countries importing more than 75,000 metric tonnes of parcels and mail will be allowed to set their own rates beginning July 2020. A second tier of importing countries may set "self-declared" rates in January 2021.
The deputy director of the State Postal Bureau, Gao Hongtao, said the increase will “push up the cost of cross-border e-commerce logistics in China, bringing a certain impact." But he added that the impact on China overall should be small because fees paid to its post office also will increase.
The UPU governs the rules and rates for cross-border postal services. The Trump administration announced its intention to exit the UPU in October if the body did not grant the U.S. the ability to set its own terminal dues. The Trump administration had argued that the former policy was giving China an unfair advantage in cross-border mail and e-commerce shipments. China is designated a developing nation by the UPU, giving it the same advantages as much smaller, less-developed economies.
Nol van Fenema
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