UN Postal Union Member Countries Reach Unanimous Agreement on Postal Remuneration Rates

 

This is a follow-up to our post U.S. Withdrawal From U.N. Postal Union Will Interrupt/Eliminate U.S. Diplomatic Post Office Deliveries.  The Universal Postal Union is a UN specialized agency with its headquarters in the Swiss capital Berne. Established in 1874, it is one of the world’s oldest international organizations and is the primary forum for cooperation between postal sector players.

On September 25, UN/UPU announced that its member countries have reached an agreement on international remuneration rates on the second day of the Geneva meeting. This agreement will see the UPU accelerate rate increases to the system used to remunerate the delivery of inbound international bulky letters and small packets, phasing in self-declared rates starting as soon as 2020. Excerpt below:

Under the agreed solution, member countries that meet certain requirements – including inbound letter-post volumes in excess of 75,000 metric tons based on 2018 data – would be able to opt-in to self-declare their rates starting 1 July 2020.

The decision also includes thresholds to protect low-volume, developing countries from the impact of the swift reform.

Speaking of the decision, the UPU Director for Policy, Regulation and Markets Siva Somasundram said, “This is a landmark decision for multilateralism and the Union. The Geneva Extraordinary Congress has shown that 192 countries can reach solutions on complex issues by acclamation.”

The postal remuneration system, also known as the terminal dues system, ensures that Posts are compensated for the cost of handling, transporting and delivering bulky letters and small packets across borders. Member countries agreed on the current system during the 2016 Universal Postal Congress in Istanbul.

On October 17, 2018, the US sent the UPU a letter of withdrawal, but stated that they would not do so if a solution to the remuneration rates system was found.

One of the UPU’s governing bodies, the Council of Administration, fast-tracked discussions on changes to the remuneration system. In June 2019, member countries voted by postal ballot to hold a third Extraordinary Congress to decide on the proposed changes.

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