Overseas Trade: USA

(asked on 19th January 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate his Department has made of the effect of the proposed five-year increase in postal rates to the US on the profitability of UK SME exporters.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 25th January 2021

International postage rates are agreed through the Universal Postal Union (UPU), a specialised body of the United Nations. The postal operator that sends an item to another country remunerates the destination postal operator for processing and delivering the item. The costs the receiving postal operator can claim are agreed on a multilateral basis.

In September 2019, the UPU agreed to reform the remuneration rates to reflect the true cost of delivery. Member countries unanimously agreed on a proposal that committed most members to pay the same rates for bulky letters and small packets, effective from January 2020. In addition, countries meeting certain conditions, would be able to self-declare their rates from 1 July 2020. The US is the only country that currently meets these conditions.

In the negotiations on the reforms to the remuneration rates, the UK sought to minimise the impact on our citizens and businesses, ensure the continued flow of trade and maintain the integrity of the international postal system.

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