The United States Will Remain in the Universal Postal Union
The article below is an update from our previous blog: How Will U.S. Withdrawal from the UPU Affect You?
An agreement was reached in Geneva on September 25th that would keep the United States as a member of the Universal Postal Union (UPU), despite previous rumors that the US would withdraw on October 17th.
The amendment that was adopted will allow the United States to set a rate for inbound shipments to be at a threshold of approximately 70% of domestic rates, and countries importing more than 75,000 metric tons of parcels and mail will be able to set their own rates.
When Will These Changes Take Place?
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. Those countries that receive mail from the U.S. will also be able to charge reciprocal rates for delivery of U.S. mail and shipments within their borders.
How Will This Affect the USPS?
After officials announced that the U.S. would stay in the UPU, the United States Postal Service notified negotiated-service agreement (NSA) holders that NSAs will stand through their natural termination dates.
What Does This Mean for Your Business?
While many feared that a U.S. pullout from the UPU could have drastically changed the landscape for international shipping, this agreement is generally viewed as a win for those concerned about dramatic changes to international postal rates and policies.
There is still some finalization that needs to occur with respect to ratification, and we are monitoring the situation closely. We will keep you informed of any changes if new developments arise, and we welcome you to reach out with questions or concerns.