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Will the U.S. Pull Out of the Universal Postal Union?

The Universal Postal Union (UPU) will be meeting in Geneva, Switzerland on September 24-26, 2019 and it will soon be determined if the the U.S. will withdraw from the UPU. Should they decide to leave this could impact global parcel rates.

On October 17, 2018, President Trump announced that the United States will withdraw from the Universal Postal Union (UPU), an intergovernmental organization that sets the rules and rates for international mail delivery. The basis of Trump’s argument stems from the fact that it costs more to ship an item within the U.S. than between China and the U.S.

A presentation from USPS on June 19, 2019 cited that,

USPS intends to keep our major international products and services for export, but some changes to geographic coverage may result…rate changes are likely to follow the current, normal annual cycle schedule…unless costs increase significantly.

Giselle Valera, Executive Director of Continuity of Global Operations

USPS stated they are actively working on solutions to minimize any possible disruptions in the event the U.S. withdraws.

Chit Chats will follow the outcome of the October 17, 2019 meeting for any impacts to international shipping caused by a U.S. departure from the UPU. Ultimately, online sellers may see rate increases in January in line with annual carrier increases. However, there is the potential for an earlier rate increase.

As we are always looking to provide our clients with low-cost shipping alternatives, we’ll be monitoring this closely – especially with the holiday season quickly approaching.