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

Township firefighters contain morning blaze at Langley greenhouse

Fire trucks were heard rushing to the Fernridge area early Wednesday morning

BREAKING: Gabby’s Country Cabaret announces ‘heartbreaking’ permanent closure

Owner Steve Gallagher ‘holds out hope’ of a new future for the 35-year-old nightlife hotspot

Aldergrove’s drive-in theatre stops showing films after 50-car limit comes into effect

Tuesday night was exceptionally quiet at Metro Vancouver’s only drive-in theatre –… Continue reading

More details disclosed about tragic death of Langley Rams player

Saskatchewan Health Authority looking into circumstances surrounding Samwel Uko’s hospital visit

Virtual auction by Langley’s Able Auctions raises $60,000 for charity

An estimated 600 people bid during the online event

BC Ferries losing up to $1.5 million each day as pandemic tanks ridership

The company does not qualify for the wage subsidy

Facing changes together: Your community, your journalists

Thanks for helping the Aldergrove Star to continue its mission to provide trusted local news

Suspected cocaine seized at South Surrey border

20 bricks of alleged illicit drug sniffed out during search of commercial tractor-trailer

COVID-19: B.C. church services resume with public health limits

Maximum 50 in large spaces, Premier John Horgan says

Chilliwack school board censures trustee Barry Neufeld after controversial Facebook post

Board chair issues statement on censure but little else regarding Facebook post controversy

Twenty-nine of Canada’s 48 national parks to reopen to day-use visitors June 1

All national parks, historic sites and marine conservation areas have been closed for weeks

JK Rowling publishes first chapters of new story online

Book will be a fairy tale for kids and benefit those particularly affected by the pandemic

BC Corrections to expand list of eligible offenders for early release during pandemic

Non-violent offenders are being considered for early release through risk assessment process

Most Read