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> He writes, "Essentially, U.S. shippers are partially paying higher shipping rates to make up for the hit the USPS takes giving subsidies to the Chinese." Yea
by crispyambulance 9y ago
> He writes, "Essentially, U.S. shippers are partially paying higher shipping rates to make up for the hit the USPS takes giving subsidies to the Chinese."
Yeah, but why?? What is the intent of this program? Is it some kind of global trade "kick-back" in exchange for something else or is it just a dumb idea? Even the audit doesn't address the reason for this bilateral agreement made in 2011.
Moreover, even if the program "makes money" for the postal service it comes at the expense of hurting competitiveness of domestic mail-order. There must be some other side to the story, right? Protectionism is harmful in itself, but this seems like the exact opposite: active harm to domestic business in favor of Chinese business.
- AnssiH 9y agoFrom the linked Forbes article: > They came up with the ePacket, which is actually meant to be an improvement over the rates set by the UPU. In exchange for providing tracking and faster delivery times, ePacket partner countries agree to pay slightly higher rates. So the Chinese pay more for ePackets than they would for standard mail by UPU rates.