In early 2020, countries are expected to start issuing revised tariff cards and no one knows who will be the first to click the “Send” button. From that date on, there will be a flood of negotiations. Will they have reached an agreement? Will the options studies show that there are non-postal and commercial solutions? Will lengthy bilateral negotiations lead to IT integrations with new commercial (non-postal) carriers? 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 On Wednesday, Navarro said the agreement would “transform an outdated and discriminatory system into a modern and resilient system, much better prepared to meet the new demands of e-commerce.”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 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.
The agreement, which came into force in 2018, has increased final tariffs for some developing countries with strong economies, including China. However, the higher costs still do not cover the full cost of the Us-Post for the delivery of these parcels. In the services of the China Post, Chinese vendors gained access to solutions through outdated UPU agreements, in which China was an “undeveloped” country.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.