WASHINGTON, D.C. – Taking another shot at America’s rival, China, President Trump this week announced the U.S. is leaving a 144-year-old global delivery treaty that gives China an unfair advantage and the ability to flood U.S. with cheap products.
According to the White House, President Donald J. Trump received a report from the Department of State pursuant to the August 23, 2018, Presidential Memorandum on “Modernizing the Monetary Reimbursement Model for the Delivery of Goods Through the International Postal System and Enhancing the Security and Safety of International Mail.” The report noted that sufficient progress has not been made on reforming terms of the Acts of the Universal Postal Union (UPU) in line with the policies of the United States outlined in the Memorandum. The report also recommended steps the United States can take to address the problems identified in the Memorandum.
The President concurs with the Department of State’s recommendation to adopt self-declared rates for terminal dues as soon as practical, and no later than January 1, 2020. The Department of State will also file notice that the United States will withdraw from the UPU. This will begin a one-year withdrawal process, as set forth in the UPU Constitution. During this period, the Department of State will seek to negotiate bilateral and multilateral agreements that resolve the problems discussed in the Presidential Memorandum. If negotiations are successful, the Administration is prepared to rescind the notice of withdrawal and remain in the UPU.
The U.S. view is that international mailing rates set by the UPU favor China. The United Nations says “the Union sets shipping rates for overseas mail, at a lower rate for developing countries, than developed nations.”
A director at the UPU was quoted as saying on a United Nations website, “The decision of the United States of America to withdraw from the UPU treaties is a serious one, but I believe, with the support of other members, we can resolve the matter amicably. We will, therefore, continue to seek a constructive dialogue and to try to resolve this situation, while also upholding the UPU Constitution.”
He added that UPU remains committed to support international collaboration in the postal sector.
“This means ensuring that, by working with all 192 member countries, the UPU treaties best serve everyone, including the US.”
Established in 1874, UPU is the primary global forum for cooperation between postal systems. It works with its member countries to bring postal services to everyone on the planet. The second oldest international organization worldwide, UPU became a UN specialised agency in 1948.
