The Universal Postal Union established by the Treaty of Bern of 1874,[1] is a specialized agency of the United Nations (UN) that coordinates postal policies among member nations, in addition to the worldwide postal system. 1
This agreement has worked very well up until recent years until the recent boom in China's economy.
In recent years UPU members have encountered serious problems triggered by the enormous increase in e-commerce originating from the Far East, where the terminal dues do not cover the unit costs of delivery in the destination countries, and the volumes are so big that the losses cannot be compensated by better terminal dues from other traffic. In 2016 a new remuneration system was implemented with a focus on e-commerce,[13]
Though the 2016 balanced the costs to the delivery services, postage costs for shippers is still asymmetric. As of 2018, US companies pay more than twice as much to mail an item from a US plant to a US customer, than does a manufacturer in China to mail an item to a US customer. [^2]
China Post charges per gram (supposedly irregardless of world destination) with no other fees. All our favourites cheap gadgets, Xiaomi devices, etc are sent here for free or next to nothing due to these agreements. Apparently there are some other countries in SE Asia like Singapore who also offer cheap postage
The US is seeking to pull out of the UPU agreement so it can charge inbound fees that are fairer. Makes you wonder if Australia will follow next given the recent addition of GST on overseas purchases. Could be the end of cheap small electronics/gadgets/junk deals.
Sad to say, I think we reached 'Peak Bargain' around 2010. I think Australia Post would love to escape loss making obligations.