The Universal Postal Union (UPU) held a special conference this week to discuss postal remuneration – the prices paid to a postal operator (such as the US Postal Service) for the international delivery of postal items, including ecommerce items. It’s a big issue because President Trump has pushed back on the low rates paid by China for delivering small packages to US online shoppers.
Yesterday’s UPU conference brought together representatives of the UPU’s member countries, postal operators, industry experts and other interested parties.
The UPU issued a press release today detailing the three options that were before a special committee and what it concluded.
The three options the Second Committee of the UPU’s Council of Administration had before them were the following:
1) To allow member countries to self-declare postal rates;
2) To accelerate rate increases already approved by the UPU; and
3) A convergence option that also adopts self-declared rates as its basis, but with elements aimed at mitigating undue price impacts.
According to the press release: “After discussion, the Second Committee agreed to put all three options forward for voting and will ballot member countries on whether these options will be decided by an Extraordinary Congress to be held on 23-24 September, or by postal ballot.”
Director General of the UPU Bishar A. Hussein said, “This decision will allow all member countries to vote on this essential matter at either an Extraordinary Congress or a vote by postal ballot. I look forward to working with every member country as we go forward to ensure that we do what is best for the Union, the consumer, and the international postal system.”
The United States announced its withdrawal from the UPU, effective October 17, 2019, and plans to issue self-declared rates. That means the UPU’s September decision will come right down to the wire.