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Express Delivery and the Postal Sector



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Express Delivery and the Postal Sector 23 353 2003 Express Delivery and the Postal Sector in the Context of Public Sector Anti Competitive Practices D Daniel Sokol I INTRODUCTION International trade plays an increasingly important role in global economics One growing part of the international economy has been express delivery services Because various governments that maintain public sector postal monopolies have erected barriers to entry to impede its growth express delivery has become an important battleground within the realm of trade International trade which initially consisted mainly of the trade of goods is now increasingly focusing on services This article focuses on the problem of a particular type of service and the barriers on this service express delivery that countries place upon it Not surprisingly those countries that are the most competitive and have the fewest barriers to trade and problems of monopolization i e those countries that suffer least from monopolistic behavior in their express delivery market have the most effective and competitive distribution systems 1 Section II of this article explains the importance of express delivery to the international economic system Section III offers examples of how countries erect public sector barriers to entry in this field to limit the ability of private sector entrants to compete Section IV examines how privatization in conjunction with liberalization will improve opportunities for entrants to provide express delivery services Section V explains how current legal mechanisms could promote greater competition on the issue of public sector barriers to entry in the express delivery segment of the postal services sector Section VI concludes by advo B A Amherst College MSt University of Oxford J D University of Chicago Associate Steel Hector Davis LLP The views expressed in this article are those of the author alone and do not represent those of the firm or its clients 1 Office of the United States Trade



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