The Universal Postal Union (UPU) should be opened up to private companies such as parcel and express operators to create a single global delivery network following last week’s historic agreement to reform terminal dues, the UN agency’s two top officials have urged at Parcel + Post Expo 2019.
This would be a core part of broader reforms, including reorganising financial contributions and the 145-year-old world postal organisation’s debts, which could be agreed at its next regular Congress in August 2020.
UPU Director General Bishar Hussein explained at the UPU World CEO Forum on Monday how the compromise deal reached at last week’s Extraordinary Congress had “saved the Union” by keeping the USA in the world postal system.
Under the agreement, the US Postal Service will move to self-declared rates for imported small packets (up to 2kgs) in July 2020, with other postal operators to follow from 2021 onwards. Self-declared rates will initially be capped at 70% of the comparable domestic tariff.
In an on-stage discussion with CEP-Research Chief Editor Paul Needham, Hussein urged postal operators around the world to review their domestic tariffs, adapting them to commercial competitive markets, and then adjust their international rates.
Asked about the major strategic issues facing the world postal sector, the UPU DG highlighted the need to open up the UPU to private operators and to reform contributions as part of the proposed new strategy.
He also called on postal operators to step up their sustainability activities to respond to the challenges of global climate change.
In a separate address at the UPU World CEO Forum, Deputy Director General Pascal Clivaz underlined that “the need for reform is more than ever a top priority for UPU”. Major priorities over the coming year would be to work on “a new integrated open UPU” and on stable financing for the organisation.
Speaking at the Parcel + Post Expo conference on Tuesday, Clivaz explained to postal executives and other delegates how the compromise deal had been reached at last week’s Extraordinary Congress, commenting that “we are the only ones to have brought the US and China to a treaty agreement”.
The UPU number two pointed out that the agreement had also put a financial value on access to the worldwide postal network. “We were able to assess the value of the network. The US was ready to pay $40 million to access this network,” he commented. (As part of the remuneration rates agreement, the USA will contribute $40 million over five years to the UPU to finance diverse projects.)
Looking ahead, Clivaz continued: “The next step is the opening of the UPU to other players. The question is how to bring them on board, how to exchange (with them).”
UPU officials now plan to present proposals to meetings of the organisation’s Postal Operations Council and Council of Administration later in October. These would then be further discussed at POC and CA meetings next April with the aim of gaining approval at the UPU Congress next August.
