Please ensure Javascript is enabled for purposes of website accessibility
Opinion: Lessons From America’s September Trade Win Over China
Inside-Sources
By InsideSources.com
Published 6 years ago on
October 5, 2019

Share

On Sept. 25, the U.S. scored a significant trade win over China while strengthening our relations with many other industrialized countries and even the United Nations. The valuable lessons learned and successful negotiating practices augur optimism, even enthusiasm, that our broader trade discussions with China will succeed.


Paul Steidler
InsideSources.com
Opinion
At issue was renegotiation of a global postal accord at the Universal Postal Union (UPU), a 192-country organization affiliated with the United Nations. The Trump administration began a concerted campaign in August 2018 to end its bizarre system by which small packages sent from China to the United States cost half as much as sending identical packages a short distance within the United States.
Starting in July 2020, the U.S. Postal Service will be able to cover its costs, effectively charging China the same for its services that it does U.S. customers. This will eliminate a $300 milllion to $500 million annual financial loss for the Postal Service.
More important, it will be the catalyst for increased sales of U.S.-made goods. Manufacturers, retailers and e-commerce companies will have billions in increased annual revenues that will also result in more jobs and higher tax revenues.

Seven Important Lessons

There are seven important lessons to learn from America’s UPU victory.

—Be blunt. The United States was very clear to the UPU and others that the current system was no longer tolerable. This included numerous op-eds and candid media interviews with Peter Navarro, assistant to President Trump and director of trade and manufacturing policy.
—Be fair. The United States had an eminently clear and reasonable goal: get China and a handful of other countries that benefit from the current system to pay their fair share for the services they use from the U.S. Postal Service.
—Set deadlines. Before last month’s deal at the UPU, the United States was prepared to pull out of the organization on October 17. We had provided the required year’s advance notice to the UPU.
—Work with allies. The United States brought together dozens of countries that were also dissatisfied with the UPU system and similarly affected by the previous system. These countries are now able to raise their rates to China, though less dramatically than the United States can.
—Accept compromise. The ideal solution for the United States would have been the adoption of a proposal by which it and other countries could explicitly declare their own rates to other countries, a move supported by 57 other nations. While the agreed-upon calculation method for increasing costs to China is more complicated, it gets the job done, at least for the next few years. The United States and other countries should continue to push for the ideal solution in the years ahead.
—Have contingency plans. The United States was poised to leave the UPU on October 17, had an agreement not been struck. We had been negotiating numerous bilateral agreements, particularly with the dozens of countries that shared our postal views and where agreements were highly likely to be executed and seamlessly implemented.
—Bring the A-Team to discussions. The U.S. success at the UPU is due in good part to the presence of Navarro at its Extraordinary Congress, September 24-26. Through rigorous and exhausting discussions, an agreement was struck that even China could support, and which passed the UPU by overwhelming acclamation.
By taking these lessons to heart and building upon them, the United States can obtain a fairer trade agreement with China, which will be mutually beneficial to both countries. Strong, clear and persistent negotiations are the essentials.
About the Writer 
Paul Steidler is a senior fellow with the Lexington Institute, a public policy think tank in Arlington, Va. He wrote this for InsideSources.com.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

World’s Largest Almond Processor Will Shutter Sacramento Plant. 600 Workers Impacted

DON'T MISS

Trump Eyes Major Funding Cuts for California, Including All Public Universities

DON'T MISS

Farming Regulation Costs Rise 1,300% Since 2006: Cal Poly

DON'T MISS

Southern California Air Regulators Weigh a Plan to Phase Out Gas Furnaces and Water Heaters

DON'T MISS

US Supreme Court Allows DOGE Broad Access to Social Security Data

DON'T MISS

Doctors Were Preparing to Remove Their Organs. Then They Woke Up.

DON'T MISS

Abrego Garcia Is Returned to US From El Salvador

DON'T MISS

Proud Boys Convicted in Jan. 6 Attack Sue Government on Claims of ‘Political Persecution’

DON'T MISS

FDA’s AI Assistant ‘Elsa’ Fails Its First Day on the Job

DON'T MISS

Documentary Series Goes Inside Trump’s Bubble

UP NEXT

California’s Deficit Dilemma: Cut Spending, Borrow Money or Raise Taxes?

UP NEXT

We Are Being Governed by the Trump Organization Inc.

UP NEXT

Procter & Gamble Slashes Workforce as Tariffs Drive Up Costs

UP NEXT

US Weekly Jobless Claims Rise for Second Straight Week

UP NEXT

US Trade Deficit Narrows Sharply in April; Imports Post Record Drop

UP NEXT

Silver Surges Past $35/oz Level to Hit a More Than 13-Year High

UP NEXT

California’s Economy Is Just Limping Along. Why Is Newsom Always Boasting?

UP NEXT

Really, Secretary Rubio? I’m Lying About the Kids Dying Under Trump?

UP NEXT

Wall Street Ticks Higher as Tech Boost Offsets Economic Worries

UP NEXT

Trump’s Big Bill Will Cut Taxes by $3.7T and Add $2.4T to Deficit, Budget Office Says

Southern California Air Regulators Weigh a Plan to Phase Out Gas Furnaces and Water Heaters

4 hours ago

US Supreme Court Allows DOGE Broad Access to Social Security Data

4 hours ago

Doctors Were Preparing to Remove Their Organs. Then They Woke Up.

4 hours ago

Abrego Garcia Is Returned to US From El Salvador

4 hours ago

Proud Boys Convicted in Jan. 6 Attack Sue Government on Claims of ‘Political Persecution’

5 hours ago

FDA’s AI Assistant ‘Elsa’ Fails Its First Day on the Job

5 hours ago

Documentary Series Goes Inside Trump’s Bubble

5 hours ago

Tulare County Gang Member Convicted of Trying to a Murder Police Officer

5 hours ago

Newsom Promises Funding to Jump-Start ‘Science of Reading’

6 hours ago

Feds Indict SoCal Hospice CEO for Medicare Fraud in Fresno and Kern Counties

6 hours ago

World’s Largest Almond Processor Will Shutter Sacramento Plant. 600 Workers Impacted

The world’s largest almond processor, Blue Diamond Growers, says it will close its Sacramento processing plant this year The almond co...

2 hours ago

2 hours ago

World’s Largest Almond Processor Will Shutter Sacramento Plant. 600 Workers Impacted

4 hours ago

Trump Eyes Major Funding Cuts for California, Including All Public Universities

4 hours ago

Farming Regulation Costs Rise 1,300% Since 2006: Cal Poly

5 hours ago

Southern California Air Regulators Weigh a Plan to Phase Out Gas Furnaces and Water Heaters

5 hours ago

US Supreme Court Allows DOGE Broad Access to Social Security Data

5 hours ago

Doctors Were Preparing to Remove Their Organs. Then They Woke Up.

5 hours ago

Abrego Garcia Is Returned to US From El Salvador

6 hours ago

Proud Boys Convicted in Jan. 6 Attack Sue Government on Claims of ‘Political Persecution’

Help continue the work that gets you the news that matters most.

Search

Send this to a friend