Denmark looking to end discount postal deal with China - The Post

Denmark looking to end discount postal deal with China

Transport minister taking part in Universal Post Union summit

40,000 every day and not good business for PostNord (photo: Pixabay)
September 24th, 2019 3:30 pm| by Christian W

Thanks to an old Universal Postal Union (UPU) agreement from 1969, packages from China to Denmark get away with paying about a third of the actual postal delivery price.

But the discount deal in 1969 was brought about when China was considered a developing country and needs to end soon, maintains the transport minister, Benny Engelbrecht.

“We must normalise the situation. That means we need to ensure that full payment is secured for postal packages that are sent to Denmark,” Engelbrecht told TV2 News.

“China is a market on par with us, so it’s only fair that they start paying the same rates as any other company.”

To this end, Engelbrecht will take part in a UPU convention in Geneva today where one of the key topics will be how to best phase out the discount.

READ ALSO: Playing ‘pass the parcel’ with China is proving expensive for Postnord

A UPU exodus?
Around 40,000 packages arrive in Denmark from China on a daily basis and the national postal service, PostNord, is also keen to see China start to pay more for their packages.

“It’s obviously unreasonable that a package from China to Denmark costs far less than a package from Copenhagen to Aabenraa. We lose a significant million-kroner figure on these China deliveries every year,” Morten Rosengreen, the head of international deliveries at PostNord, told TV2 News.

Currently, there is an agreement on the table that would increase the payment required from Chinese package dispatchers by 45 percent by 2021, but that’s not enough for Denmark, the US and a number of other countries, which want the discount completely axed.

The US has gone as far to say it will leave the UPU if its demands are not met and the former transport minister, Ole Birk Olesen, said last year that the Danes were ready to follow suit.