Tag: USA

According to one 2008 UPU publication, 69 percent of the world’s permanent or mobile post offices offer financial services. Funding initiatives that would provide advantages for state postal monopolies to enter sectors already served by the private sector, such as financial services, would not benefit U.S. consumers and markets. They also place monopoly consumers at increased peril of being overcharged to finance such new ventures.
As discussed in the U.S. Strategic Plan for the UPU presented at this Committee’s meeting in March, it is a primary goal that the UPU “promote and encourage unrestricted and undistorted competition in the provision of international postal … and delivery services.”
Several proposals and documents discuss an expanded involvement for the UPU into the financial services sector, an expansion the United States should view with considerable concern. These include:

• The Postal Operations Council Report, Document 23, puts forward a definition of the postal sector including a financial dimension, specifically discussing credit cards, savings products and pension payments.

• UPU Proposal 10, “Postal Financial Services Development” instructs the Postal Operations Council and the International Bureau to “meet the demands of the changing environment” by, among other things, “promoting anti-money-laundering activities” and “recommending the introduction of new financial services which could be offered via the worldwide postal network.” According to the U.S. Strategic Plan for the UPU, it should be ensured that policies comply with U.S. anti-money laundering policies and other regulatory requirements.

• Document 27A, Council of Administration Report, discusses the “Connect the World” initiative proposed to be completed by 2015. As described, the initiative would develop postal financial services, and in particular money transfers, through partnerships between governments, the private sector and international organizations.
Other Sectors
The Postal Operations Council report discusses other areas, such as parcels, express and logistics services, each with an articulated future role for the UPU, particularly in developing markets and business development.
For instance, it cites logistics, and specifically the “strong growth area” of outsourced warehouse-to-customer logistics functions. In 28 percent of UPU member countries, national posts currently offer logistics services, according to the UPU. “Issues of corporate freedom and competencies to develop these services [by national posts] will be limiting factors, unless they are suitably addressed,” the report states.
Proposal 28 concerns climate change and sustainable development and includes the producing publications for postal administrations on the subject and, “developing Socially Responsible Investing products, microcredits for postal administrations that carry out banking activities, and reliable, affordable fund transfer services for migrant workers and their families.” It then outlines a future role for the UPU as an active contributor to market development, undertaking robust market analysis while working with all stakeholder groups.
Proposal 37 from the Postal Operations Council seeks to advance postal market development goals. It would specifically instruct the council to “facilitate the growth of letter post, parcels and postal financial services markets, as well as business services, logistics and E-business, including hybrid mail, E-shopping, electronic postal certification and dot.post.” It also instructs the council to increase capabilities and create or maintain business relationships and partnerships to facilitate such growth.”