FOR IMMEDIATE RELEASE:
October 17, 2018
Contact: Press@paul.senate.gov, 202-224-4343
WASHINGTON, D.C. – Today, U.S. Senator Rand Paul (R-KY) applauded President Donald Trump for taking steps to end implicit American subsidization of foreign merchants and help reduce costs for both the United States Postal Service (USPS) and private shippers, with the administration announcing its intent to withdraw from the Universal Postal Union (UPU).
“I am glad that President Trump listened to our concerns on the UPU and is taking swift action to end this unfair advantage for foreign companies that comes at the expense of American workers,” said Dr. Paul.
The State Department will pursue negotiations during the withdrawal process over the next year as the administration keeps the option open to remain in the UPU if shortcomings can be addressed.
In May 2018, Dr. Paul sent a letter to U.S. Treasury Secretary Steven Mnuchin, chairman of President Trump’s Task Force on the United States Postal Service, urging action to correct the competitive disadvantages and security vulnerabilities caused by the UPU, which leaves American businesses and entrepreneurs often paying higher shipping rates than many of their overseas competitors.
Under the UPU, which was originally intended to facilitate timely global mail service among its 192 member countries, set rates (known as “terminal dues”) are paid to a foreign postal service for the delivery of the country of origin’s mail in a receiving country.
In addition to discussing how the existing terminal dues system “severely” distorts the market and places Americans at a “distinct disadvantage” in his letter to Secretary Mnuchin, Dr. Paul also remarked on the security concerns facing the United States under the UPU, noting that “foreign postal services are not required to follow the same customs and security processes that are imposed on other international shippers.”
You can read Dr. Paul’s letter to Secretary Mnuchin below: