Global Coordination vs Unilateralism

For historical reasons, most postal operators are only active in their national markets, and they must cooperate to deliver cross-border. In practice, postal operators typically cooperate in the following way:

The Universal Postal Union (UPU) system of terminal dues governs payments for the sorting and delivery of cross-border letter post items. A global multilateral system, such as the UPU, has to achieve two objectives:

This study focuses on understanding the drivers that underpin the economic welfare contribution of a global multilateral system, such as the UPU terminal dues remuneration. In doing so, it considers, based on several strands of economic theory, the likely effects of abandoning this type of system in favour of unilateral action.

The main conclusions of our study are:

The study is commissioned by Le Groupe La Poste.