Wednesday February 26, 2020

USA will stay in UPU under “victory” compromise deal

UPU delegates agree the compromise deal by acclamation
UPU delegates agree the compromise deal by acclamation

The USA will remain in the world’s postal system after UPU member countries this afternoon approved a compromise deal that will enable the US Postal Service to declare its own rates for imported small parcels from China and the rest of the world from next July.

However, any USPS increases will be limited by certain ceilings. In addition, the USA would have to make a one-off payment of US$40 million to the UPU over five years.

In parallel, other countries will be able to opt for self-declared rates or gradually adjust terminal dues between 2021-25 under a complex agreement labelled Option V (for ‘Victory’) that was designed to ‘save’ a single global postal system.  

The compromise agreement, which was negotiated during long and intensive consultative meetings on Tuesday evening and Wednesday morning, was passed by acclamation without a vote late on Wednesday afternoon.

“Something for everybody”

UPU Director General Bishar Hussein told delegates: “We have come far and wide and have come to the end of a long journey to fix our broken system of remuneration payments…. There is something for everybody… The primary objective is to have a single world postal territory.”

Deputy Director General Pascal Clivaz added: “It’s not the perfect agreement but it is the closest we can get.”

During a two-hour afternoon plenary session, Option V was clearly supported by key UPU members such as the USA, China, Japan, Germany, France, Canada, Australia, New Zealand and the UK along with many other large and small countries from around the world. Some of these countries had previously supported the US-backed Option B that yesterday failed to get a majority. 

Peter Navarro, head of the US delegation and Assistant to the President of the United States for Trade and Manufacturing Policy, told delegates that the compromise agreement “meets the objectives” of the USA.

  • CEP-Research will report on details of the UPU compromise agreement on Thursday.



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