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

Just Posted

Victim of downtown Courtenay assault dies from injuries

Person of interest identified by RCMP

North Island College’s annual 3-Hour Fiction Contest returns

Two competitions; one for adults, one for U-18 writers

Comox Valley’s drinking water within lead guidelines, say staff

Residents with old homes may still want testing if concerned about pipes, solder

Denman ferry cable to be replaced with plastic cable – for now

The first flattened steel strand cable is expected to be installed late summer 2020

Cumberland holds off transfer of ‘alleyway’ property to homeowner

Village cites need to protect alleyways, while staff cite encroachment issues

VIDEO: ‘Climate emergency’ is Oxford’s 2019 Word of the Year

Other words on the shortlist included ‘extinction,’ ‘climate denial’ and ‘eco-anxiety’

Comox Fire Rescue donates defibrillator to St. George’s United Church

Comox fighters have donated an automatic external defibrillator (AED) to St. George’s… Continue reading

Federal laws at heart of West’s anger up for debate, as Liberals begin outreach

Vancouver mayor to Trudeau’s western critics: ‘Get over yourselves’

Snowboard pioneer Jake Burton Carpenter dies at 65

He was diagnosed with testicular cancer in 2011

Teen developed ‘popcorn lung’ due to vaping: Ontario doctors

Boy went from being in perfect health to being on life support after just five months

B.C. judge tosses ‘N’ driver’s claim he was just using phone to decline his mom’s call

Distracted driving laws are more strict for Class 7, or Novice drivers, the judge noted

My Tech Guys celebrates 13 years in the Comox Valley

On Friday, Nov. 22 My Tech Guys will be holding their annual… Continue reading

Woman calls 911 to say she was late for train, asks Ontario police for ‘emergency ride’

Peel Regional Police received more than 180,000 improper calls so far this year

It could take you 218 years to save up for a house in this B.C. neighbourhood

It would take 27 years in the most affordable city in the Lower Mainland

Most Read