US Postal Service Subsidizes Chinese Package Delivery

Edward Hudgins, Ph.D., Research Director of the Heartland Institute, has written a very interesting article on how the Universal Postal Union (UPU) agreement forces the US Postal Service to subsidize the delivery of small packages sent from China to American addresses.  The USPS lost about $75 million in 2014 due to it having to deliver small packages from China.  It costs less for a Chinese business to send a package thousands of miles across the Pacific Ocean to most American addresses than it costs an American business to send a similar package 600 miles to an American address.  This is an unfair trade practice.  The Trump administration tried to get the UPU to change its archaic rules, but the US gets only one vote among 192 nations in the UPU.  The UPU basically shrugged the US off.  The Trump administration has responded with a termination of our membership in one year if the problem is not corrected.