'Trump Is Having His Own Brexit': The Race to Prepare for a Potential U.S. Exit From the World's Mail System.
As an American, Jeanne Glenz prizes her right to
vote. But, because she lives near Munich with her German husband,
exercising that right isn’t always easy.
This year, it could get even harder, depending on the
results of an obscure international meeting scheduled to take place in
Geneva on Sept. 24-25. If the Trump Administration doesn’t get what it
wants at that summit, the United States is set to withdraw from an
arcane treaty that governs global mail delivery—leaving commercial
shippers and military mail managers fretting, and election officials
concerned that millions of overseas Americans will struggle to cast a
vote.
“This represents taxation without representation,” says Glenz, a 79-year-old retired psychologist from California.
The White House says it is working “around the clock”
to facilitate a smooth exit from the agreement if it comes to that, but
the U.S. Postal Service (USPS) has telegraphed a more cautious outlook
in industry conversations. With few details made public, experts in
everything from elections to trade worry the U.S. may be about to upset
the stability of the mail system around the world. The current system isn’t perfect—a
letter may get lost; a gift may arrive the day after a birthday—but it’s
still an impressive bit of international cooperation. After all, if you
want to send a letter from the U.S. to Glenz in Germany, you can use
American stamps and still expect Deutsche Post to deliver it.
That’s thanks to the Universal Postal Union (UPU), a
144-year-old organization that sets technical and security standards to
keep international mail and small packages moving around the globe. Now
part of the U.N., it’s the second oldest international organization in
the world, and not typically involved in high-profile disputes. But one
main part of the arrangement has drawn President Donald Trump’s ire:
“terminal dues,” the rates the 192 member countries pay one another to
deliver mail across borders. Because the fees were developed in the
1960s based on factors including a nation’s economic development at that
point, countries like China, whose economy has grown enormously since
then, still pay heavily subsidized rates while the U.S. pays much more.
That means it can sometimes be cheaper to send a package from China to
the United States than it is for Americans to send packages between
states.
“What’s really made this a disastrous system is that
in the last 10 years or so, international document volume has plummeted
and international e-commerce has boomed,” says James Campbell, a lawyer
and UPU expert who consults for international shipping companies. “The
United States and the Europeans have been flooded with e-commerce goods
that come from China and other countries. We are delivering those goods
at terminal dues rates that are substantially less than what the Postal
Service charges domestic mailers for the same service.”
This discounted shipping cost industrialized nations
$2.1 billion in 2014, per a study cited by the USPS. Trump, who has long
complained about trade imbalances and NATO spending, called this
discrepancy “discriminatory” in the presidential memorandum
he issued before announcing last October that he intended to leave the
UPU. Though his was not a new complaint—administrations going back to
Ronald Reagan’s have voiced it, and many trade experts agree the
treaty’s rates need an update—the decision to quit the group outright
was, like many Trump Administration actions, a surprise. But the
withdrawal process takes a year, and the State Department says the U.S.
will stay put if allowed to “self-declare” its own terminal-dues rates.
“It looks like Trump is having his own Brexit. It could be an absolute free-for-all.”
Which means the clock is ticking: the September UPU
meeting is the last real chance to strike a deal. There, members will
consider several proposals. Option A offers few changes. Option B lets
countries decide rates, up to the amount they charge for domestic mail,
starting in 2020. Option C would allow them to move toward setting
their own rates, but at set ceiling increases until 2025. The proposals
aren’t public, but documents seen by TIME show the U.S. proposed an
amendment to Option C that would let it self-declare in 2020 while
leaving other nations with a longer transition. (Other countries have
proposed a variety of other amendments, too.)
U.S. officials say other member states appear to be
listening, but its patience is limited. “We are doing everything
possible to make sure one of two things happen: either we get a vote at
the [meeting] that gives us immediate self-declared rates,” top White
House trade adviser Peter Navarro tells TIME, “or we seamlessly exit the
UPU.”
Those in the mailing industry aren’t optimistic about the seamless part.
“It looks like Trump is having his own Brexit,” says
David Jinks, head of consumer research at the U.K.-based courier company
ParcelHero. “It could be an absolute free-for-all, and every country
will have to fight its corner and set its own rates.” For now, there’s widespread disagreement
about what will happen if the U.S. does withdraw on Oct. 17 without new
bilateral postal agreements to replace the relationships the UPU now
covers. And until those agreements are made public, businesses and
election officials are stuck trying to plan for contingencies. Major
trade partners are unlikely to refuse to deliver American mail, but a
spokesperson for the European Commission—noting that it remains
“committed to a multilateral rules-based approach”—said withdrawal from
the UPU could have a “significant impact” on the customs treatment of
mail from the U.S. bound for the European Union. There might be less
incentive for foreign postal services to prioritize U.S. mail, or mere
confusion could leave letters languishing in foreign post offices.
And while every person who enjoys getting a postcard
from a friend who wishes you were here is potentially affected by the
way mail moves around the globe, the stakes are particularly high for
some.
Major business groups, including the U.S. Chamber of
Commerce, are eager for the dues reform the Trump Administration is
pushing, but many are wary of the upheaval of fully withdrawing from the
union. Kate Muth, executive director of the International Mailers
Advisory Group (IMAG), which has members that include outbound shippers,
marketers and bulk mail consolidators, notes that the break would take
place at peak shipping season ahead of the holidays, potentially leaving
U.S. exporters without access to expedited customs processes. IMAG
members are also concerned that a U.S. exit will encourage other
countries to change their rates too, causing shipping costs to change
unpredictably.
For U.S. troops serving overseas, mail is handled by
the Military Postal Service Agency, so it should be largely unaffected
by UPU changes—but military mail managers have been worried as they
prepare for a withdrawal, according to Merry Law, an international mail
expert who serves on the Universal Postal Union addressing work group.
And even if military mail functions just fine, millions of other
Americans live abroad, including civilians, military family members and
military contractors who don’t have access to bases.
That population includes an estimated three million potential overseas voters, and election officials are unsure what to tell them as Election Day approaches.
Federal law guarantees them the right to vote
absentee, but 19 states do not allow for electronic submission of
ballots. Even for those that do allow an electronic method, ballot
security is a major concern. Elections experts worry that, without
access to the Universal Postal Union, overseas voters might not know if
their ballots make it back on time or could be left paying high prices
for private carriers to deliver their ballots—especially in state and
local races, which aren’t covered by the guarantee that the federal
government will cover postage for their ballots. “That’s tantamount to a
poll tax,” said a Democratic aide to the House Administration
Committee, which has been looking into mitigating fallout from a
withdrawal.
“This would suddenly undermine a federal law,
undermine the voting process, and take away options that overseas voters
want and need,” says Susan Dzieduszycka-Suinat, president of the U.S.
Vote Foundation, a non-partisan organization that helps overseas voters
cast their ballots. “It would be a knife in the heart of overseas
voting.”
There won’t be much time to iron out the kinks, with 2020 primaries just months away and severalstates holding important elections
this November. Ballots are usually sent to overseas and military voters
45 days before Election Day. This year, that’s Sept. 21—three days
before the UPU meeting in Switzerland.
“It’s uncertain what’s actually going to happen until
ballots are already in the hands of the voters,” Keith Ingram, director
of elections in Texas and president of the National Association of
State Election Directors, told TIME. Overseas voters already have fairly
low turnout, he added, “and uncertainty is something that has the
potential for decreasing turnout.”
More than 1 in 4 U.S. citizens living overseas
could be in a country with no agreement facilitating mail between them
and the U.S.
The White House and State Department declined to
answer specific questions on how military and election mail would be
handled in the event of withdrawal, but Navarro said that there would be
no “interruption” for overseas voters or troops, and that there would
be “no additional cost” for overseas voters in the event of an exit.
Preparations for a future outside the UPU started the day after Trump
announced his intention last fall, Navarro said, and the White House has
since held regular “high level” meetings with relevant agencies. “Two
of the highest priority issues we are addressing have to do with these
elections and mail involving our military troops,” Navarro said. “We
will not let there be any interruption in either one of those groups.”
The Postal Service also declined to answer detailed questions about its
preparations but said it was taking “parallel efforts to ensure the
continued exchange of international mail items even if the negotiations
to remain in the UPU are unsuccessful.”
Yet despite the confidence projected by the Trump
Administration, the Postal Service warned the mailing industry in a June
presentation in Washington that it would likely see changes to its
“geographic coverage” if the U.S. pulled out, according to presentation
materials and recordings obtained by TIME. The USPS and the Federal
Voting Assistance Program, the Defense Department office that helps
manage overseas voting, also told election officials at a conference in
August that the U.S. was focused on establishing agreements to ensure
that mail delivery continues with 17 priority nations, according to
Tammy Patrick, a senior adviser at the Democracy Fund who serves as the
USPS liaison for the National Association of Election Officials.
Those countries are expected to cover about 70% of
Americans abroad. That means more than 1 in 4 U.S. citizens living
overseas could be in a country with no agreement facilitating mail
between them and the U.S.
So far, as the Trump Administration prepares for the
meeting in Geneva, all the major agencies involved appear to be sticking
with the President’s signature confident style and quick
decision-making. The State Department said it is “ready and eager to
constructively engage with other reform-minded partners” at the summit,
but emphasized the U.S. would achieve its goal of setting its own rates
“whatever the outcome” of the meeting. The United States under Trump
doesn’t have the same relationships it once did with other countries,
but if the Americans can convince a majority of the other countries
attending the Universal Postal Union’s meeting that they don’t want the
U.S. to leave the group, then some of these concerns might not come to
pass this year.
In either case, the once quiet world of international mail may be quiet no longer.
“It’s definitely going to have an impact,” Patrick
says of the potential withdrawal. “It’s just a question of how
detrimental it’s going to be.”
For Glenz, the uncertainty has made her more eager
than ever to get her ballot in the mail. “The ability to vote is the
cornerstone of a democracy,” she says from Germany. “This is my one tiny
golden hammer, and I’m not giving it up.” —With reporting by Madeline Roache/London A version of this article appears in the Sept. 30, 2019, issue of TIME