In 2020, the self-declare era would begin. intention to self-declare rates, the United States will exit the UPU on October 17 and begin a series of bilateral negotiations with 192 individual postal authorities. If, as expected, the UPU meeting in Geneva does not back the U.S. Including terminal dues totaling $1.02 billion paid for outbound first-class mail, the net positive result for the five-year period totaled $710 million. The report estimated that the USPS lost $308 million (about $75 million annually) on single-piece letter post in the five-year period between 20. The explosive growth in cross-border ecommerce traffic has greatly elevated stakeholders’ concerns about the economic distortions created by the system.” Postal Service and other operators have lost money on international postal letters and small packages received from abroad, especially from emerging countries like China. Now that it is the world’s second-largest economy, the Trump administration has argued that China should no longer benefit from the lower postal rates for developing countries.Ī 2015 report by the USPS’s inspector general reached a similar, conclusion: “The global terminal dues system … does not fully reflect actual domestic processing and delivery costs. The agreement, as it stands, is not based on actual costs but on a system that gives lower pricing and other benefits to developing countries shipping goods into developed countries like the United States.Īt the time the agreement was made, China was included on the list of developing countries. The main issue is a 50-year-old terminal dues agreement governing the amount of postage paid to the destination country by the origination country. from heavy net exporting countries as rates kept artificially low for decades begin to normalize.” would be a rate increase of at least 300 percent on postal parcel traffic to the U.S. Matthew White of iDrive Logistics, who is cited in a report at transportation industry website Freightwaves, noted that the “practical effect of the exit of the U.S. The United States is seeking the right to “self-declare” postage pricing on international parcels. Postal Service (USPS) plans to abandon the 144-year-old Universal Postal Union (UPU) on October 17 unless an agreement is reached later this month at a UPU meeting in Geneva, Switzerland.
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