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The goal of the UPU was to have one rate for international shipping based on sending country vs. per destination pricing. Countries agreed to eat the costs. Thi
by wbl 7y ago
The goal of the UPU was to have one rate for international shipping based on sending country vs. per destination pricing. Countries agreed to eat the costs. This produced things like the International Postal Coupon which are great.
- Kadin 7y agoLike Internet peering agreements, the UPU model only made sense when there was about the same amount of traffic going in each direction. In that case, it makes sense for each country to just pick up the cost of domestic last-mile delivery, because other countries are doing the same for its outbound packages. The problem is when there's a continuous structural trade imbalance, and more packages flow one direction than in the other. Then you have a de facto subsidy scheme, and it makes sense to terminate or renegotiate the agreement and switch to something more along the lines of sender-pays.
- wbl 7y agoSubsidy to whom exactly? Remember the packages only flow because your end wants them.