Abstract
One of the hotly debated issues being discussed among the membership of the Universal Postal Union (UPU) concerns the status of, and treatment extended to, commercial extraterritorial offices of exchange (ETOEs). ETOEs are facilities, whether real or virtual, established by postal operators outside their home territories in the territories of other countries. The surge in ETOE activity is not unique to industrialized country (IC) operators. Indeed, some operators are attempting to leverage their ability to access networks under developing country (DC) terminal dues rates in order to compete with universal service providers (USPs) for delivery of cross-border items. Thus, postal operators in both DCs and ICs are affected by ETOE competition, since the terminal dues system adopted at the 1999 UPU Beijing Congress provides that rates for access to postal networks vary depending upon the identities of the countries of origin and destination.
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