International Delivery Prices: Effects on National Post and E-Commerce

Finland and Sweden are members of the Universal Postal Union (UPU), a UN agency. The UPU international agreements include rules capping the cross-border postal rates (terminal dues) that the Finnish and Swedish post can charge the foreign sending postal company for inbound mail.

These international tariffs (governed by the UPU) differ from the compensation the domestic postal operators would require in a situation without the terminal dues system in place. As surveyed in our past work for the US postal regulator, this difference in prices gives rise to several distortive effects, including financial transfers between designated postal operators around the world. It also affects the competitive outlook for e-retail activities based in countries like Finland and Sweden.

The main conclusions of our study are

The study is commissioned by Kaupan Liitto and Svensk Handel.

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Related work

U.S. Postal Regulatory Commission The Economics of Terminal Dues
U.S. Postal Regulatory Commission Terminal Dues