The first phase of the amendments to the new UPU Treaty began on 1 July 2020. As a result, U.S. e-commerce companies that supply to other countries via USPS have seen an increase in international shipping costs. This is because many UPU member countries have increased their costs of receiving and delivering packages shipped from the United States. In addition, consumers who order products from small e-commerce sellers in China should expect higher shipping costs. Faced with such difficulties in exchanging mail with Europe, the United States had already taken the lead in demanding improvements to international postal agreements. The head of the U.S. Postal Service, General Montgomery Blair, called for an International Congress of Posts in 1863. At their meeting in Paris, delegates defined a number of general principles of post-political cooperation, but did not reach an agreement.  After the creation of the United Nations, the UPU became a special agency of the United Nations in 1948.  It is currently the third oldest international organization after the Rhine Commission and the International Telecommunication Union.
The United States has agreed to remain in the World Postal Association (UPU) and avoid a tectonic shift in global e-commerce. But a less dramatic and less resounding type of change is still approaching the global postal order. What is the World Postal Association? Founded in 1874, the UPU is the second oldest international organization, based in the Swiss capital, Bern. History – World Postal Day The Treaty of Bern for the creation of the current World Postal Association was signed on October 9, 1874. We continue to celebrate the global postal network every year on 9 October as World Post Day. The South China Morning Post reported that China`s small e-commerce businesses will suffer from rising postal costs. However, major Chinese retailers are unlikely to be affected by the contract amendment. Large companies often have demanding logistics processes with several warehouses around the world. Most of them do not send small packages from China to American customers. Postal changes will therefore not put their economic models in turmoil. The agreement, approved by the World Postal Association, now part of the United Nations, at a meeting in Sweden, will allow the postal service to set its own rates for small incoming parcels and bulky letters from July 2020. Similarly, foreign countries will be able to self-declare tariffs to calculate packages originating in the United States and its countries, through a process that will be gradually implemented over the next six years.
Earlier this week, the World Postal Association Congress rejected a plan that would have immediately allowed USPS to set its own rates for international shippers. The final plan, approved by Congress, is considered a compromise. Shea Felix, director of Stamps.com`s GlobalPost program, told Supply Chain Dive that a maximum of 100 percent would be better than 70 percent, but the new rules will bring the terms of competition a little closer between domestic shippers, international shippers from countries previously favored by the UPU before option V. The deal is less disruptive than what the U.S. had pushed, which would have created priceless pricing for all. This new system sets a volume threshold for countries that can self-report rates and a series of other process controls. The system of final remuneration has also created new winners and losers. With final remuneration fixed, low-cost countries that were net beneficiaries would benefit from the delivery of international mail. . .