Marchant Applauds UPU Withdraw, Ending Foreign Package Subsidies

Congressman Kenny Marchant (TX-24) released this statement following the announcement by the Administration to withdraw the United States from the Universal Postal Union:

“I’m encouraged by today’s announcement by the Administration to change its outdated policies that have cost American jobs,” said Marchant. “Under our current system it is cheaper to mail packages from China to Dallas, than from Dallas to Ft. Worth. This system has placed our businesses at a major competitive disadvantage and results in postal ratepayers paying to subsidize these inbound packages from China.

“The major gateway for the import of fentanyl and other synthetic opioids from China has been to ship them through the United States Postal Service (USPS). To make matters worse, for years the USPS has been subsidizing these packages from China at the expense of ratepayers. Today’s action by the Administration achieves the same goals as my legislation, H.R. 5524, the Packages Overseas Subsidy Termination Act or POST Act, and will end a mind-numbing and costly practice by the USPS.

“Under this new system, Americans will no longer be gouged to pay for more expensive shipping rates to subsidize inbound international packages. The new system of self-declared rates will provide fairness to shippers and taxpayers alike. I look forward to working with the Administration as we implement this new system.”

Background: According to the Postal Regulatory Commission, the USPS lost $170 million last year subsidizing inbound international packages.