The United States to Remain in the Universal Postal Union – PARCEL Industry.

On September 25, an amendment that will keep the United States as a member of the Universal Postal Union was reached at the organization’s Extraordinary Congress in Geneva, Switzerland. This move is seen as a positive one by most postal experts, especially given the fact that US withdrawal from the union seemed inevitable, bringing along with it potential service disruptions and uncertain pricing. While there is still some finalization that needs to occur regarding the ratification of the new amendment, overall, most industry experts agree that a crisis was averted.

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The option that was adopted on Wednesday will allow the United States to set a rate for inbound shipments to be at a threshold of approximately 70% of domestic rates. “The rationale is that current inbound rates can potentially be much lower than [that of] domestic shipments,” Iyer explains. “Consequently, many believe that it puts domestic businesses and shippers at a disadvantage.”

The new rates will take effect in mid-2020, although some other nations may implement rates over a five-year period to ease the transition.

This is a follow up to our previous post “U.S. to leave global postal union next month barring last-minute action; exit could send global parcel rates soaring”.