August 9, 2022 Meeting
Thank you, and congratulations to Governors Tangherlini and Kan on your appointments.
One of the most exciting developments in international business over the next decade will be the rise in small, cross-border package shipments. McKinsey predicts these to triple.
This is good news for American businesses looking to sell more abroad. Low-cost and efficient international e-commerce also means more affordable and reliable purchases, and downward pressure on inflation.
To help ensure these benefits to the American economy, the Universal Postal Union, the United Nations organization that governs mail and small package shipments between posts must be fundamentally reformed. Otherwise, the UPU will atrophy and become far less important for international package shipments. The UPU will be having an Extraordinary Congress in the fall of 2023 to discuss these matters.
The U.S. Postal Service will serve itself and the American people well by enthusiastically supporting a significantly reformed UPU that offers greater competition for the customers of international package services. This will also eliminate often arbitrary financial arrangements that benefit China and a handful of other countries.
As the U.S. State Department works on proposals for the UPU, the Postal Service should support and advocate policies that will benefit the American people. Furthermore, the expected growth in international e-commerce will also be a boom for your Parcel Select Service, while requiring little marginal investment or expense.
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