Watchdog Praises Trump Administration for Postal Pricing Reforms

For Immediate Release
July 1, 2020
Contact: Grace Morgan
(202-855-4380)

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) praised the Trump administration’s efforts to allow the U.S. Postal Service (USPS) to self-declare international postage rates, following a September agreement at the Universal Postal Union’s “Extraordinary Congress.” Today (July 1), postage rates for mail originating in nations such as China will increase 100 percent or more from existing rates. These new shipping rates mark a dramatic departure from the pre-September agreement status-quo, in which it was often, “cheaper to ship a parcel weighing under 4.4 pounds from a retailer in China than to ship the same item domestically,” according to Supply Chain Dive.

TPA president David Williams praised the agreement and today’s price adjustments as a win for taxpayers: “Before the ‘Extraordinary Congress’ in September, the USPS wasn’t able to charge rates on inbound mail reflective of actual delivery costs. This sorry status-quo resulted in hundreds of millions of dollars in annual losses, causing the agency to plunge even deeper into debt. Fortunately, the Trump administration’s repeated insistence on reforms has resulted in a new, inbound pricing system that is fair and sustainable to U.S. producers, consumers, and taxpayers.”

Williams continued: “Today’s price adjustments are an important step toward the USPS turning its fiscal ship around. And, thanks to a D.C. Circuit Court ruling this week, the agency will have to be more transparent going forward about disclosing the profitability – or lack thereof – of its foreign mail operations. The USPS tried to block the Postal Regulatory Commission from publicly disclosing financial data about its international service lines, but the Court ruled on June 30 that financial transparency is essential. While it’s unfortunate that it has taken this long for businesses and consumers to get fairer USPS rates with accompanying financial transparency, these reforms and rulings are pivotal steps in the right direction.” 

Williams concluded: “It has been a great week for Postal reform, but far more must be done to ensure that taxpayers won’t have to foot the bill for USPS’ losses. Taxpayers and consumers are still waiting for the long overdue 10-year USPS business plan that former Postmaster General Megan Brennan promised during an April 30, 2019 hearing before the House Oversight and Reform Committee.  A comprehensive TPA study released last year found that the USPS has the opportunity to streamline operations, make sensible purchasing decisions, and align its prices with reality. There’s still much work to be done, and this week’s changes should serve as a stepping-stone to broader reforms.”

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