As postal revenue dries up around the world, many publicly operated postal organizations may be tempted to get into new lines of business. This presents a vexing challenge to private-sector companies that may find themselves in competition with these state-supported entities.
To address these concerns, last month USCIB and three other business groups sent a letter to the Obama Administration urging the U.S. to prepare diligently for the next ministerial-level congress of the Universal Postal Union (UPU), which will take place in Qatar in September 2012.
“We see potentially important issues on the table at the UPU session, including unhelpful efforts from some quarters to extend the scope of government-run postal monopolies into new areas, potentially competing with the private sector,” stated Shaun Donnelly, USCIB’s vice president for investment and financial services. “Package delivery, insurance, financial services and retail are just some of the sectors where postal monopolies might try to encroach in an effort to offset shrinking volumes and financial losses in their postal services.”
The business groups urged the administration to form an interagency committee to develop coordinated pro-market, pro-competition positions for the U.S. delegation leading up to and at the UPU congress. They also recommend that the State Department, Postal Service and the U.S. interagency team work closely with relevant private-sector entities throughout this preparatory period.
Other groups signing the letter with USCIB were the American Council of Life Insurers, Coalition of Service Industries and U.S. Chamber of Commerce.
Staff contact: Shaun Donnelly