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UPU Works To Meet USA Demands

UPU-Hussein

UPU Director General Bishar Hussein

The Universal Postal Union is working on addressing United States demands to change the terminal dues system and stop the subsidy of cross-border parcels, following receipt of a letter from the United States stating it would withdraw from the UPU in 2020.

“If we work fast enough, and the member countries are all in consensus on these issues and decisions are made, by April next year I think it is a possibility,” said UPU Director General Bishar Hussein to the Wall Street Journal.

Earlier, the UPU issued a release acknowledging receipt of the USA letter of withdrawl. (Click to read)

The United States announced it will pull out of the Universal Postal Union, giving a one-year notice as required by the UPU Constitution.

The US raised concerns earlier in the year about the abuse of the terminal dues system, where national postal authorities are reimbursed for delivering another nation’s mail. The rise of ecommerce has seen the system abused by foreign marketers at the expense of domestic ecommerce providers and postal services.

The US came away empty-handed on the issue at the most recent Extraordinary Congress in Addis Ababa in September. The US, with the support of Brazil, Chile and Argentina, sought to move commercial packets into a parcel service that would not fall under the terminal dues system.

Related: USA Ultimatum To UPU: Fix Terminal Dues Or We’re Out