President Trump moves to pull U.S. out of 144-year-old postal treaty, citing hit to U.S. firms

John Fritze | USA TODAY

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WASHINGTON – The Trump administration on Wednesday threatened to pull the United States out of a 144-year-old postal agreement that it says has disadvantaged domestic shippers by giving China and other countries discounts on postal rates.

The Universal Postal Union, created in 1874, sets shipping rates for 192 member countries. Administration officials said Chinese shippers pay roughly 20 cents for every $1 domestic companies pay to move a package within the United States.

The imbalance amounts to a subsidy for foreign businesses in China and elsewhere that compete with U.S. companies, administration officials said. The move comes as the Trump administration is engaged in a tit-for-tat trade war with Beijing.

Senior officials said the State Department would formally begin the process of withdrawing from the treaty Wednesday but noted that process can take a year to finish. The administration is leaving open the possibility of renegotiating the deal in that time.

Jay Timmons, president of the National Association of Manufacturers, applauded the move.

"Manufacturers and manufacturing workers in the United States will greatly benefit from a modernized and far more fair arrangement with China," Timmons said in a statement.