WASHINGTON — The planned withdrawal of the United States from the Universal Postal Union could drive up costs for Canadian businesses shipping to U.S. customers from third countries. The U.S. declared its intention last fall to exit the Swiss-based Union, which co-ordinates delivery between national postal services. It says the lower dues paid by countries categorized as developing, including China, give them an unfair advantage. Washington is prepared to suspend its departure, due to come into effect next month, if the UPU allows countries to set their own rates.
Jordan Sansom, director of marketing at Toronto’s Shape Products, told the Globe & Mail that even such concessions would take a toll on his company and its clients. Many of his smallest clients, he explained, are “drop-shippers” who ship products directly to the buyer without holding them in inventory. “If these smaller clients start to get wiped out, or their numbers get reduced, then we focus more on our larger client acquisition, or focusing on clients who are already in that middle stage, who have already launched their product,” he said.
