POTUS To End Postal Fee Discounts For China Counterfeit Goods

U.S. manufacturers, retailers and USPS suffered from deep postage discounts.

November 1, 2018, Los Angeles, CA - President Trump says the United States will withdraw from a 144-year-old postal treaty allowing steep postal discounts for China manufacturers and counterfeiters who flood U.S. markets with cheap counterfeit, fake and replica goods.

The President does not need congressional approval to withdraw because the last version of the treaty was never put up to a vote, however it may be a one-year process per United Nations rules.

A one-pound package that costs the U.S. Postal Service about $10 - $15 to deliver can be mailed from China First Class for just $2.50, according to White House figures. It's cheaper to send packages from China than across the street. This cost the U.S. Postal Service about $170 million last year, while subsidizing China sellers and driving U.S. retailers and manufacturers out of business.

The action should severely disable Chinese counterfeiters and dishonest sellers using e-commerce websites, including eBay (EBAY), Amazon (AMZN) and Alibaba (BABA), from mailing an enormous amount of counterfeit goods to unsuspecting buyers in the USA.

80% of eBay sales and 50% of Amazon sales are from global "Marketplace" sellers, who exploit this cheap, effective way to deliver goods, including an inexhaustible supply of counterfeits and replica products to unsuspecting U.S. consumers.

Counterfeiting and pirated goods is the world's largest criminal enterprise, and forecast to grow to $2.8 trillion, and cost 5.4 million net job losses by 2022 states a 2017 International Chamber of Commerce Report. China is the world's largest online retail market, producing over 90% of global counterfeit goods. Chinese companies now account for about 60 percent of packages shipped into the United States.