The Universal Postal Union warns of a major disruption to the global postal system and huge price hikes for consumers if the United States withdraws from the U.N. organization. The UPU is holding in Geneva an Extraordinary Congress to prevent this from happening.
The Trump Administration’s threat to withdraw from the UPU has triggered this Extraordinary Congress. Washington is angry that China, considered a developing country, pays lower postal rates than the U.S.
UPU secretary-general, Bishar Hussein says the meeting seeks to find a compromise solution to keep the U.S. within the Universal Postal Union.
“[The] U.S. is a very major player of the Union," he said. "Their economy is very big, and many countries have a huge traffic postal and packets traffic with the United States. So, the departure of the United States from the Union would mean a total disruption of services to that country. Because the moment a country leaves the treaty, what happens is that that country does not exist for us in our global postal territory.”
Three different proposals are on the table. The United States favors option B, which would allow countries to immediately self-declare their own rates.
Assistant to the president and director of the Office of Trade and Manufacturing Policy, Peter Navarro heads the U.S. delegation. He agrees this option might cause some very short-term disruptions. But, he says, it is the fairest and quickest path to a reform that is long overdue.
Hussein says he prefers another, more balanced proposal that allows nations to set their own postal rates at a slower pace. He tells VOA there will be negative consequences for the U.S. if it leaves the Union. He warns it will not be cost-free.
“The moment a country walks away from a treaty, the Universal Postal Union, all the services and all the standards and the rules that govern the international mail supply chain system developed over 145 years will no longer be accessible to them,” he said.
He says a country that leaves the treaty will no longer be able to exchange any letters, packets or parcels using the Union's postal code and system. Hussein says the United States will have to negotiate different bi-lateral agreements with 192 countries.
He says countries may have to use other channels to deliver the mail to the United States at higher rates. He adds it is the consumer who will have to pay.
