U.S. postal treaty exit would hurt Canadian e-commerce businesses

U.S. threaten to exit Universal Postal Union in October unless more balanced shipping fees reached

U.S. President Donald Trump’s push to withdraw from an international postal treaty could have a big impact on Canadian e-commerce companies and their American customers.

The U.S. threat to exit the Universal Postal Union in October unless more balanced shipping fees with China and other countries can be reached this month means online retailers could see direct-to-consumer delivery prices shoot up.

The 145-year-old treaty, which sets the rates that nearly 200 national postal services pay one another to complete deliveries, mandates wealthier countries to pay more than developing countries, including China.

READ MORE: CryptoKitties — Are blockchain Beanie Babies the future of e-commerce or a fad?

Todd Coupland, an analyst at CIBC World Markets, says the Trump administration’s move for the United States Postal Service to set its own rates would affect drop-shipping, which refers to retail deliveries made directly to the buyer from a manufacturer or wholesaler.

Many drop-shippers in Canada use Shopify Inc. as their retail platform, meaning a dip in deliveries and more shuttered online storefronts could dent Shopify’s bottom line, which relies on payment-processing fees and user subscriptions.

In an email, the U.S. Postal Service says it supports the goals of the Trump administration to secure a more balanced remuneration system for small goods shipments, and that it will not leave the postal treaty if better terms are set before the union’s next meeting in mid-October.

The Canadian Press

READ MORE: Comox Valley artisans join new local e-commerce platform

READ MORE: New e-commerce project helps market Alberni Valley growers

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

LETTER: Priority should be given to locals accessing Golden Ears park

Maple Ridge residents should be able to reserve new day passes ahead of out-of-towners: one local

When life gives you lemons…

Maple Ridge kids make the most of summer by setting up lemonade stand

SHARE: Rainy days of summer in Maple Ridge still a sight to behold

Send us your photo showing how you view Maple Ridge or Pitt Meadows, and it could be featured soon

FURTHER UPDATE: Body removed from Maple Ridge hotel after large police presence

A large contingent of Mounties were at the Art Infiniti Hotel Friday afternoon and evening

Flames honour their best from last season

Maple Ridge’s Amsler the MVP and team scoring leader

53 new COVID-19 cases, no new deaths cap off week of high infection rates in B.C.

Roughly 1,500 people are self-isolating because they either have COVID-19 or have been exposed to it

VIDEO: Internet famous Yukon-based bhangra dancer explores Vancouver Island

Gurdeep Pandher spreads joy through dance, forms cross-cultural connections amid pandemic

Unofficial holidays: the weird and wonderful things people celebrate around the world

On any given day of the year, there are several strange, silly or serious holidays to observe

Fraser Valley Bandits advance to CEBL Championship Game

Bandits post comeback 76-75 win over Hamilton Honey Badgers in Saturday’s semifinal

IHIT on scene of suspicious early-morning fire on rural Mission property

Entrance to Gunn Avenue property cordoned off while investigation takes place, updates coming

Moving on: Tanev scores 11 seconds into OT as Canucks oust Wild

Vancouver beats Minnesota 5-4 to move into first round of NHL playoffs

Gene editing debate takes root with organic broccoli, new UBC research shows

Broccoli is one of the best-known vegetables with origins in this scientific haze

VIDEO: U.S. Air Force pilot does fly-by for B.C. son amid COVID border separation

Sky-high father-son visit plays out over White Rock Pier

3 Vancouver police officers test positive for COVID after responding to large party

Union president says other officers are self-isolating due to possible exposure

Most Read