The Universal Postal Union, the U.N. agency that coordinates international mail services, opened its quadrennial congress under a cloud of economic disruption and uncertainty.
The organization’s director general, Masahiko Metoki, acknowledged the pivotal moment on Monday as new data showed a significant decline in the sector’s growth, a trend compounded by recent U.S. regulatory changes that have led to a near-total halt of international mail to the nation.
Metoki, in a news conference, described the global postal network as a "powerful engine of inclusion" but warned of the headwinds it faced.
"The postal sector is confronted with real challenges, but our data shows us that there are also significant opportunities ahead if we act quickly to leverage our strengths — our extensive global network and our experience as an essential services provider to billions," he said. "The time to transform the services we deliver through that network is now.”
The 28th Universal Postal Congress, which ends on Sept. 19, began with Bern, Switzerland-based UPU's release of its "State of the Postal Sector" report finding the industry's growth lagged 71% behind the global economy over the past two decades.
The U.S. moved to formally withdraw from the organization under the first Trump administration, but a compromise was reached to allow the U.S. to self-declare rates, which was critical for averting a major disruption to the global system. A U.S. delegate submitted several proposals to the opening plenary, including one to allow "remote participation while preserving the integrity of secret ballots" that was quickly approved by consensus.
American policy creates chaos
The most immediate crisis facing UPU is the fallout from new U.S. customs rules that took effect on August 29. The changes, which eliminated a tax exemption on low-value imports, led to widespread service suspensions.
According to UPU, postal traffic to the U.S. dropped by 81% in the first week of the new rule. A staggering 88 postal operators from around the world have either fully or partially suspended mail services to the United States until a solution is implemented.
UPU said it has begun deploying a new technical solution to help restore service: a landed-cost calculator that postal operators can use to calculate and collect the required duties from customers at the point of origin.
However, a special session has been scheduled for Sept. 10 at the Congress to address the disruptions and find a way forward. The special session is needed because UPU's new solution, while a major step forward, is not a simple fix, according to Metoki.
UPU is focused on building "common solutions" and working "collectively for the benefit of all," he said, noting that UPU is working on a "rapid development of a new technical solution that will help get mail moving to the United States again."
The special session provides the essential forum for all 192 member countries to be briefed on the new system, discuss implementation challenges, and align on a unified approach to a problem that caused widespread operational disruption.
A call for innovation
In his remarks, Metoki highlighted how the postal network could modernize to reclaim its central role in global commerce.
"The rapid growth of e-commerce and our network's global reach provides a solid basis for postal services to evolve, modernize, and reclaim a central role in connecting the people and businesses worldwide," he said.
The Congress, which is being held in Dubai, is tasked with setting UPU’s strategy for the coming four years. The host nation, the United Arab Emirates, also emphasized the need for innovation.
Tariq Al Wahedi, the Congress chair and chief executive of 7X, U.A.E.’s postal group, said that his country was focused on delivering "practical outcomes" and building "stronger, more resilient networks that turn innovation into long-lasting sustainable impact."
He noted U.A.E.'s recent launch of NXM, a new logistics network, as an example of that ambition. Al Wahedi also said the U.A.E. was keen on leveraging new technologies like artificial intelligence to improve delivery efficiency and enhance customer satisfaction.
UPU's report offers a detailed roadmap for this transformation. It recommends that nations reduce their dependence on traditional letter mail and instead focus on broadening customer-focused services.
It also warns that drastic cost-cutting measures, such as closing post offices, can have a "reverse effect on revenue growth," and that maintaining a dense national network is critical, especially in rural areas.
The report found that a key to growth is diversifying services and reducing reliance on traditional letter mail. It notes that a 10% reduction in letter mail dependence can narrow the sector's growth gap by 9%.
The analysis also revealed a vast 60-point "development gap" between the highest and lowest-performing postal operators. The gap measures the difference in overall postal advancement across four key areas: reliability, reach, relevance, and resilience.
However, countries like Sri Lanka, Ukraine, and Uruguay have shown that targeted modernization can lead to significant improvements, offering a hopeful path for closing this divide.
