Question

Evaluate and comment on why you can get a cheaper rate for shipping a package from countries in the Pacific rim than USPS shipping a package from across the street.

Answer 1

To begin with, let us understand what is UPU and the role it has in determining postal rates.

UPU or Universal Postal Union is the entity which oversees the international mail exchanges and sets rates called "terminal dues" to postal operators. These charges are set by UPU to compensate for the postal services issued by the receiver's country to deliver the package.

To make it more clear, assume person A is sending a package from China to person B in US through postal service. The postal administration of A's country would have received payment for postage (usually in the form of stamp) from A. It needs to pay terminal dues to the postal administration of of B's country for its share of dues for postal services that its going to offer
to deliver the package to B.

How the terminal dues are calculated by UPU and why the cost difference?

The terminal dues are calculated for different countries based on their development. Considering our example, China being a developing country is classified as "transitional" country while US being developed is classified as "target" country.

What this means is China will be paying a lower rate as terminal due when sending a package to US. However, US being
classified as "target" country would need to pay higher rate as terminal dues by their postal service for a comparable domestic delivery.

Recent updates on UPU and terminal dues

Due to the very same reason as the question raised by you, President Trump said that U.S. would be withdrawing from UPU if the rates were not reformed. A deadline of deadline of Oct 17, 2019 was given and the UPU has reached a consensus that U.S. can set its own postal rates starting from July 2020 and other countries can also define their rates in 2021 with a five year period of phasing in new rates.