By the A.M. Costa Rica staff

According to the American Citizens Abroad the Universal Postal Union, know as UPU, is responsible for setting rules and rates for international mail delivery from its base in Bern, Switzerland and maintains the cherished stature of near invisibility. UPU oversight enables smooth mail delivery across borders and promises low-friction international commerce.

“Last year, the U.S. warned it would withdraw from the UPU by October 2019 unless substantial changes were made to the tariff structure in place," said Roland Crim, ACA Director in his statement. “The principal complaint voiced by the U.S. was a tariff structure which it considers unfair and unduly burdensome for the U.S. Postal Service, as well as U.S. businesses.”

According to ACA, the UPU’s 192 member states periodically agree a fixed remuneration known as “terminal dues” owed to the postal operator of the delivery country. China’s terminal dues were fixed in 1969 and favored Chinese shippers with very low rates commensurate with China’s status as a lesser-developed country.

In the absence of modification, this low rate has come to provide a cost savings windfall to Chinese shippers, creating an annual deficit for the U.S. Postal Service of roughly $300 million. Small packet shipments to U.S. customers cost Chinese shippers much less than U.S. shippers pay for the same item to be sent to a U.S. customer.

The negative effects of a withdrawal would be felt first and foremost within the U.S. economy. A complete withdrawal from the UPU is hardly an option, given the massive transactions costs it would imply for American buyers and foreign sellers.

The volume of commercial traffic involved and the predominant role the U.S. plays in the international postal and global trade systems render this an unfeasible prospect. In a sense, the UPU is “too big to fail”, and as a result, the U.S. will, in the opinion of most experts, do whatever is required to ensure a rapid resolution of the problem well in advance of the U.S. departure date of October 2019.

Cognizant of the stakes involved, the UPU has indicated that a solution may be at hand, announcing in June 2019 that its members have voted to convene an extraordinary congress in September to discuss the terminal dues system, said ACA.

“ACA welcomes this development and encourages the parties to arrive at a mutually agreeable solution which will ensure continued fluidity of trade relations and postal mail delivery, a vital component of the machinery enabling voting by US citizens overseas, as well as, ensuring communications between US citizens overseas and the US administrative offices, such as the IRS and the Social Security Administration,” said the organization in its statement.

According to ACA, in the event the September congress does not provide a satisfactory solution, the U.S. may attempt to dictate its own terminal dues in the immediate aftermath of unilateral withdrawal, and the duration of a transition period would be impossible to predict.

In the unlikely event such a situation arises, it will be essential that State legislatures respond by ensuring that voter registration, ballot request, and ballot documents have submission and receipt deadlines which take into account prevailing international mail delivery times.

Careful planning would be vital for ensuring that such a scenario has minimal impact on the integrity of the voting process.

More information on the U.S claims for a solution on UPU issues can be reached at American Abroad site here.*


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Should the U.S. congress speed the solution on UPU issues mentioned by ACA?   We would like to know your thoughts on this story. Send your comments to news@amcostarica.com

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