PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SBE Council Cheers Long-Awaited Effective Date of New International Postal Rate System

By at 1 July, 2020, 9:31 am

NEWS

For Immediate Release

Washington, D.C.  – Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan restated appreciation for the Universal Postal Union deal achieved last September by the Trump Administration and the State Department. The provisions of this agreement are slated to take effect July 1st.

“Prior to this agreement, America’s small businesses had been unfairly impacted by a massively flawed and outdated international rate system, which provided international competitors with favorable shipping rates into the U.S. while small businesses paid significantly higher prices to ship packages both domestically and internationally. With the new self-declared rates coming into effect, U.S. small businesses and entrepreneurs will enjoy a more balanced playing field,” said Kerrigan.

She added: “SBE Council recognizes that for far too long, U.S. postal customers have subsidized foreign competitors’ shipping costs, and as a result, producers and business in the U.S. have faced a major competitive disadvantage. We thank the White House for hearing and acting upon our organization’s calls to support the interests of American small businesses. It is also imperative that this recent rate system update creates momentum for further overhauls to the U.S. Postal Service’s fiscal management, which includes establishing a competitive rate system that is commensurate with the costs of service and the poor financial position of the USPS.”

Last July, SBE Council sent a letter about the issue to Dr. Peter Navarro, Assistant to the President and Director of the Office of Trade and Manufacturing Policy, stressing the importance of achieving positive outcomes for the nation’s small business communities. Dr. Navarro successfully directed the U.S. delegation during last September’s UPU Congress involving 192 participating member countries.

In a related matter, on June 30, the U.S. Court of Appeals for the D.C. Circuit ruled in support of transparency by backing the Postal Regulatory Commission order that requires USPS to disclose financial data and other information about foreign letters in order to get to the heart of what underlies thier unprofitability over the years and better inform how the payment structure will ultimately be reformed. The USPS fought against the release of the data.

“Transparency is foundational to accountability. The financial position of the USPS is not good and has been in bad shape for some time. It is critical that Congress and oversight bodies understand how the USPS sets prices and manages it finances. We applaud this ruling by the D.C. Circuit,” said Kerrigan.

 

Related content:

Kerrigan Statement on UPU Compromise: A Huge Win for the U.S. and American Small Businesses, September 26, 2020.

Advocate for Entrepreneurs and Small Business Applauds President Trump’s Action on Global Shipping Rates, October 17, 2018.

Comments to the USPS on Unfair Advantage Foreign Shippers Have Over U.S. Small Businesses, February 20, 2018.

Contact:

Karen Kerrigan, SBE Council president & CEO

e-mail: kkerrigan@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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