MAJURO — Despite Marshall Islands negotiating efforts, the United States government is set to change the Marshall Islands and the Federated States of Micronesia from their current “domestic” mailing status to “international” mail zones, a move that will dramatically increase mailing costs to the countries.
Robert Muller, executive director for Compact Negotiations in the Marshall Islands, said the Marshall Islands had reluctantly agreed to the classification of the Marshall Islands as an international postal destination following talks in Washington last week.
But the postal services subsidiary agreement is not yet final, he said. “We think that they haven’t exhausted all their options (for reducing costs),” Muller said.
Postal service is one of a series of subsidiary agreements of the Compact of Free Association that expire next year and are currently under renegotiation, along with the overall government funding package for the next 15 years.
The U.S. Postal Service position to change postal classification is motivated largely by the cost of providing a once-a-week postal charter service that costs about $2.2 million annually. Muller said there are options to reduce the costs of this service to the USPS, costs which the USPS is now almost entirely absorbing.
“It’s possible to work out a better deal,” he said, adding that the tuna exports now coming out of Majuro on the same charter flight offer an opportunity to reduce the USPS’s costs.
Three key issues remain to be negotiated:
• The Marshall Islands has responded to the USPS plan by saying that a “transition period” is essential before moving into the new, higher international rate system.
• The Marshall Islands wants the U.S. to provide it with special international mailing rates as opposed to the standard international rates charged for this part of the world.
• The question of whether or not the Marshall Islands will continue to use a zip code.
The USPS wants to apply standard Pacific area international rates to the Marshall Islands and Federated States of Micronesia, but the Marshalls is pushing for special rates, Muller said.
Among other impacts of a move to standard international rates, the current cost for a one ounce letter would rise from 34 cents to 80 cents.
Post cards would jump from 21 cents to 70 cents. A one pound priority mail package will rise from the current $3.50 to $12.50.
The new classification will mean that “collect on delivery” and USPS money order services will no longer be available. The Marshall Islands post office would move to a new international money order service to replace the current U.S. money order system.
“We need the institutional capacity and accountability to do this,” he said. “We’re going to work with the U.S. Postal Service to improve our postal services as quickly as possible. There is substantial room for improvement in the management and operation of the postal system.”
