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Universal Postal Union Reviews Three Options for Remuneration

Universal Postal Union
Universal Postal Union Reviews Three Options for Renumeration

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;

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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.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

2 thoughts on “Universal Postal Union Reviews Three Options for Remuneration”

  1. These countries are benefiting way more from us than from them. China destroyed our economy. Its on thing to have manufacturing there, another thing that they destroy our importers by bypassing them altogether and shipping their items directly into the states with subsidized shipping from us!

    Withdraw I say, quicker the better and don’t allow them to have a single rate that is better then citizens

  2. To little to late as far as I am concerned. They had a chance to change all of this last September when they held a special meeting and decided to table it for another 2 years because they did not want to upset China. China pays the same shipping cost to the US as Gabon does which is ridiculous at this point in time. The USPS loses at least $0.50 on every E-packet delivered in the US and believe it or not, that E-packet costs China more than they could have paid per the UPU costs. The USA submitted their withdrawal from this joke of an organization last October and it takes a year to be effective so this is just a last minute effort by China to bypass what Trump is doing to them. The Chinese rates will be at least the same as it costs us to ship a small package to China, which is $10 for something like 4 ounces.

    The Chinese government may still subsidize the cost for their companies but at least that should make it so that the USPS can stop killing us with our domestic rates like they are currently doing. I am aware that it will have a drastic effect on the International shipments and sales, but I am tired of having to subsidize all of these other countries cheap shipping costs just to ship and item in my own country. If somebody wants to buy something from another country they should pay what the true cost for shipping is, not what the UPU decides as they have now shown that they are also politically motivated and scared of what China will do to their own economies next.

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