Revealed: How The United Nations Is Crushing Australian Businesses By Making It Cheaper To Order Goods From CHINA Than From Local Sellers
- A United Nations agreement forces Australian companies to pay more postal charges
- The Universal Postal Union was created to help underprivileged developing countries
- China is recognized as a developing country, despite its enormous economic power
- Australia is increasingly calling for renegotiation of the unfair agreement
Australia is increasingly calling for a United Nations agreement to be broken, making shipping online goods from China cheaper than buying from local suppliers.
The Universal Postal Union is a specialized UN agency that regulates international shipping costs, so that underprivileged developing countries can afford to send and receive essential goods.
But according to the agreement, China, the second largest economy in the world, is considered a developing country and countries like Australia are forced to pay double.
Australia is increasingly growing to tear a United Nations agreement that makes shipping online goods from China cheaper than buying from local suppliers
The issue will be highlighted next week when a Senate investigation into Australia Post’s delivery standards in Canberra begins.
In a submission to the investigation, Australian Small Business and Family Business Ombudsman Kate Carnell AO said it is time to “renegotiate” the deal that hit businesses particularly hard during the corona virus crisis.
“My Office has received a number of complaints from small businesses about the price competitiveness of domestic parcels rather than international parcel delivery for the same or similar products,” she said.
For example, a product sold and shipped by a seller can deliver free or cheap delivery (say, $ 5).
“The domestic cost for the same product, shipped to the same location, from an Australian small business may be double that of the international seller.”
China is home to the world’s largest e-commerce platform Alibaba and is expected to become the largest economy in the world by 2030.
The “benefits and benefits” it receives as a developing country have long been an issue for Australia and its allies.
The UN allows countries to “designate” whether or not they are a developing country based on a per capita income threshold of $ 12,055 ($ 16,900).
Under the Universal Postal Union agreement, the world’s second-largest economy is considered China as a developing country and countries such as Australia are forced to pay more
“China, which is a major economic power, is considered a developing country within the World Trade Organization,” tweeted US President Donald Trump after raising tariffs on Chinese steel imports in 2018.
That’s why they get tremendous benefits and benefits, especially in the United States. Does anyone think this is fair. We were poorly represented. The WTO is not fair to the US. ‘
Australian Prime Minister Scott Morrison also spoke out on the matter when he visited the Chicago Council on Global Affairs in the US last September.
“The global institutions of the world must adapt their institutions to China in recognition of this new status … as a very great world power,” he said.
But China firmly rejects the criticism.
In a submission to a Senate investigation, Australian Small Business and Family Business Ombudsman Kate Carnell AO said it’s time to renegotiate the unfair deal that hit businesses particularly hard during the coronation crisis
“China is the largest developing country in the world,” Gao Feng, spokesman for the Department of Commerce, told reporters.
“We are not shying away from our international responsibilities and are prepared to take on commitments in the WTO that are compatible with our own level of economic development and opportunity.”
After the United States threatened to leave the Universal Postal Union because it was being treated unfairly, the organization established in 1874 agreed to let the other countries set its own postal rates.
Australia will be able to set its five-year rates from 2021.
“We recommend Australia Post to renegotiate the terms of their UPU agreement or enter a fee on all incoming international packages to keep shipping costs the same,” Carnell said.
“This will help Australian small businesses gain a foothold in the online retail market, which boomed during the crisis, and contribute to Australia’s overall economic recovery.”