Impact of U.S. Postal Treaty Exit [Canadian Business Journal (Canada)]
Shopify Inc. Class A Subordinate Voting Shares (SHOP)
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Source: Canadian Business Journal
Impact of U.S. Postal Treaty Exit, The Canadian Business Journal CBJ — Canadian e-commerce companies and their customers in the U.S. could be seriously impacted if American President President Donald Trump follows through on a plan to withdraw from an international postal treaty. The U.S. has threatened to leave the Universal Postal Union in October unless more balanced shipping fees with China and other countries can be reached this month means online retailers could see direct-to-consumer delivery prices shoot up. Once again, Canada appears to be caught in the crossfire, not unlike the oil industry. The 145-year-old treaty, which sets the rates that nearly 200 national postal services pay one another to complete deliveries, mandates wealthier countries to pay more than developing countries, including China. Many drop-shippers in Canada use Shopify Inc. as their retail platform, meaning a dip in deliveries and more shuttered online storefronts could dent Shopify’s bottom line, which
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