Since countries other than the United States have to wait until 2021 to change their tariffs, USPS tariffs and negotiated service agreements (threatened with cancellation ahead of the Extraordinary Congress) are for now safe. The USPS often announces annual rate hikes after the mid-October peak, so industry players are waiting for them every day, but in all respects it`s business as usual. The UPU only regulates the sending of letters and small parcels up to 2 kg. At the time of the first implementation of the agreement, most international mail was letters. Now that emails and apps like Snapchat and WhatsApp connect people around the world in real time, the number of letters has decreased. At the same time, e-commerce is increasing the number of small packages shipped internationally. In the services of the China Post, Chinese vendors gained access to solutions through outdated UPU agreements, in which China was an “undeveloped” country. Because of this structure, rates (until June 2020) for some postal companies (until June 2020) are often significantly lower than the cost of the target mail to deliver the parcel from the date of receipt of the parcel – so that companies can sell goods at margins inaccessible by your normal domestic business simply because they have access to cheap mail delivery solutions. In the world of UPU negotiations, we have reached a point that can be compared to a game of chess between two long-time friends. The end of this game is called “bilateral agreement,” and the result is a contract that simply says, “I`ll charge you X for deliveries if you charge me Y for deliveries.” While a normal trading negotiation is centered around giving and taking – “I`ll sell you X product at Y price.” With the many variables included, you can see how fine details become a bit tricky.
“The agreement comes at a critical time when shippers need stability before the next holiday period,” eBay said. The agreement is less disruptive than what the United States had requested, which would have created pricing for all. This new system sets a volume threshold for countries that can report self-tariffs and a number of other controls in the process. Under the agreement, the United States will also provide $40 million over five years to the Postal Union. The funding will help the postal union promote the use of computerized systems that provide security against shipping drugs such as fentanyl and other dangerous products, said David Dadge, a spokesman for the union. Companies like eBay have criticized the current system as unfair, but have warned that a U.S. withdrawal could have disastrous consequences, especially before the holiday season. The company had asked the United States to reach some kind of agreement and said on Wednesday that it supported the result. On Wednesday, Navarro said the agreement would “transform an outdated and discriminatory system into a modern and resilient system, much better prepared to meet the new demands of e-commerce.” The UPU, now an arm of the United Nations, was founded in 1874 by the Treaty of Bern. Prior to this agreement, cross-border mailing of letters was complex and often costly.
Some countries had bilateral postal agreements, others did not. It was difficult to send a letter to someone in a country that did not have a mutual agreement with your country. You should rely on a redirect service. You might even have added stamps from any country through which your letter went. The final taxes levied by the USPS partially offset this price difference. A 2015 report by the U.S. Postal Service`s inspector general compared these costs.