United States Postal Service Delivers Foreign Mail at a Loss – $300 Million Since 2010

06/18/2015

2015/06/17 The Daily Caller reports that “A 141-year-old international organization forces the United States Postal Service to deliver foreign mail at a loss, costing it over $300 million since 2010.

At a hearing held Tuesday by the House Committee on Oversight and Government Reform, representatives of the USPS, Department of State, and private companies all testified that the existing approach to international shipping rates creates market distortions that hurt American businesses and consumers in the form of reduced competition and higher postage rates.
International postage rates are set by an body called the Universal Postal Union (UPU), an organization established in 1874 and tasked with facilitating the international exchange of mail by requiring participant countries to provide universal postal service at predetermined rates.
Currently, the rates set by the UPU for mail entering the U.S. are actually lower than the cost of delivery, effectively forcing the USPS to subsidize foreign mailers.”