The Universal Postal Union is multilateralism at its best – handle with care!

Today the Universal Postal Union (UPU) marks its 145th anniversary. Established on October 9 in the Swiss capital of Bern, this multilateral agreement would likely be a hard sell in today’s time of increasing protectionism and newly emerging borders.

So why celebrate World Post Day? That’s simple: We all send and receive mail – it’s an indispensable part of everyday life.

Whether it’s called the mail or the post where you live, it’s certainly one of the most natural things in the world. In Germany, Deutsche Post DHL Group transports, sorts and delivers around 57 million letters and 5 million parcels every working day. Every one of them is a sign of trust, which is why every one of them is important.

And because the mail is so vital, it gets the highest level of protection. Under Article 10 of the German Basic Law, “the privacy of correspondence, posts and telecommunications shall be inviolable“. Nationwide provision of basic postal services at affordable rates – known as universal service – is guaranteed by the German Postal Act and other more detailed regulations.

Mail is multilateralism in its purest form

The mail doesn’t stop at the border. It’s one of the most global things in the world. And to ensure that it all works smoothly, the UPU has been writing a success story that has gone relatively unnoticed for the past 145 years. A specialized agency of the United Nations comprising 192 member states, it’s one of the oldest international organizations in history. German Postmaster General Heinrich von Stephan (1831-1897) was an initiator and one of its founding fathers. His aim was to eliminate the chaos in cross-border postal services by means of a worldwide alliance and an international process operated in line with common standards. Across both national and linguistic borders, the Universal Postal Convention of 1874 still regulates international cooperation between postal service providers, cross-border postal services and billing of the costs incurred. It’s a multilateral agreement which, in today’s times of increasing protectionism and newly emerging borders, would likely be hard to achieve. A recent article in the German newspaper Süddeutsche Zeitung sums it up like this: “There are some forms of international cooperation that would have to be invented if they did not already exist“.

Largest physical distribution network in the world

Around 5.3 million people are employed by postal companies worldwide. Every year, around 3.6 billion international letters and 180 million international parcels are transported, sorted and delivered via the UPU network to recipients around the world.

Perhaps more than anything else, the mail stands for a world that is global, open and constantly in flux. For me, “Delivering development“ – the slogan chosen to mark the UPU’s 145th anniversary – couldn’t be more fitting. Thanks to this global postal network, people in countries the world over can shop in far-off places, and companies are able to develop new growth markets on foreign shores.

The UPU sets out binding standards, making people’s lives and the exchange of postal items easier worldwide. The fact that people today can simply drop a letter into a roadside mailbox and have it arrive somewhere else in the world a few days later is all thanks to the UPU. But what counts first and foremost is that the conditions under which this happens are fair and cover costs.

No country has ever left the UPU

Only days ago, UPU Director General Bishar Hussein described the possibility of the US withdrawing the United States Postal Service from the UPU as a “nightmare scenario“. First Brexit and now a “Post-Exit“? Fortunately, at a specially convened Extraordinary World Postal Congress in Geneva, a compromise was found and postal services between the US and the rest of the world were no longer at risk.

Of course, the world has changed dramatically since Heinrich von Stephan’s day. Our world is shaped by globalization, digitalization, sustainability and the e-commerce boom. This means far-reaching change for the postal services sector as well. In times of continuous growth in online trade, more and more small shipments containing goods weighing less than two kilos are being sent via international mail. Although the costs of shipping these items are significantly higher than those with other letter formats, that difference is not reflected in the rates charged (known as terminal dues) in the current system. In the UPU system, the rates to be paid to the recipient country for such items often fall far short of the actual costs involving items sent from so-called emerging economies. In many countries – such as Germany and the US – it is cheaper for customers to order goods online in Asia than to buy them at home.

The changes agreed to date did not go far enough, according to the United States. This is why, in the fall of 2018, the US declared its intention to withdraw from the UPU on October 18, 2019.

Choosing reform over retreat

It was a long and drawn out process, but it was one with a happy end. With stakeholders willing to engage in dialogue, an agreement was reached on September 25. The compromise clears the way for a timely increase in postage rates, ensures that the US remains in the UPU and averts the risk of a “Post-Exit“ with unforeseeable outcomes for postal services to and from the US.

There are some things that shouldn’t be carelessly jeopardized. As an age-old institution, the UPU is of course in need of reform, but there’s no need to over-react – you don’t replace a window just because it steams up. I am not in favor of Brexit, and certainly not of a “Post-Exit“.

I prefer a different approach: Listening attentively, being open to change and working together on sustainable solutions. If structures and cost allocations are no longer in keeping with the times, they should be adjusted and aligned. However, this should happen with a sense of proportion, both with cost coverage and prices in line with the market in mind.

UPU – one network, one world

As the largest postal company in Europe and the largest logistics provider in the world, Deutsche Post DHL Group follows the UPU’s underlying principle with our core purpose of “Connecting people, improving lives“.

Germany is not only a founding member of the UPU, but also an export nation, an open-minded society and a passionate advocate of a free and peaceful world.

I am proud that Germany, along with representatives from more than 50 other countries, made history by launching the “Alliance for Multilateralism“ at the recent UN General Assembly held on September 26. I firmly believe that for a country and its people to develop and prosper, cooperation and networking are the key.

Shaping the future together

If we are to find sustainable solutions to the major issues of our time, then we must work together as one. Just as the UPU saved the day with a compromise, the international community must face and find solutions to the new challenges that emerge every day.

Of course, complex problems can’t always be solved with simple solutions. My conclusion: With dialogue and a firm belief in the power of working together rather than against each other, things that seem impossible become possible.