Outdated global postal system hurts US manufacturers

Last week, delegates from 192 countries met in Addis Ababa, Ethiopia to discuss the future of the global postal network. They met in the headquarters of the African Union in a building designed, built and financed by China.

It was an all-too-fitting setting given how much China benefits from an outdated postal system at the expense of manufacturers in America, and it is an urgent reminder of Congress’ need to fix the unfairness in the system.

International postal operators came together in 1874 to establish the Universal Postal Union (UPU) — the second-oldest international organization worldwide — to create a system for exchanging mail between countries.

To make the process more affordable for mailers, they agreed in 1969 to a system of subsidized rates for shipping letter post items with the cheapest rates going to the poorest countries like Botswana, Gabon and China. These rates are called “terminal dues,” and despite a lack of oversight, they were not much of a problem for decades.

When the UPU agreed to the terminal dues system almost 50 years ago, they decided to treat items up to 4.4 pounds as “letter post” because nobody was expected to ship commercial packets through the mail.

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