The Regulations Amending Certain Regulations Made Under the Canada Post Corporation Act (SOR/2024-262) address critical financial challenges confronting Canada Post, stemming from declining letter mail volumes and rising operational costs. These amendments aim to ensure the corporation’s financial sustainability by revising postage rates to better align with its cost pressures and evolving service demands. Over the last two decades, Canada Post has experienced a 60% drop in domestic letter mail volumes, decreasing from 5.5 billion items in 2006 to 2.2 billion in 2023. This sharp decline, combined with a growing population and the obligation to service over 200,000 new addresses annually, has placed immense strain on the corporation’s financial stability. The exclusive privilege granted under the Canada Post Corporation Act, which historically supported fiscal self-sufficiency, has diminished in value as digital communication increasingly replaces traditional mail.

The amendments introduce adjustments to postage rates across domestic, international, and specialized services, such as Registered Mail. Effective January 13, 2025, the cost of a domestic single stamp for letters weighing up to 30 grams will increase from $1.15 to $1.44, while stamps purchased in booklets, coils, or panes will rise from $0.99 to $1.24. Rates for heavier domestic mail and outbound international mail to the United States and other countries will also increase significantly. For example, the rate for a standard letter to the U.S. will increase from $1.40 to $1.75, and the rate for international letters up to 30 grams will rise from $2.92 to $3.65. Registered Mail within Canada will see its rate climb from $10.50 to $13.15. Overall, these changes represent an average rate increase of 25.2%.

The primary objective of these amendments is to enable Canada Post to uphold its universal service obligation, which guarantees equitable postal services to all Canadians, regardless of geographic location. The new rates are designed to remain fair and reasonable while helping offset rising costs and ensuring long-term operational sustainability. Despite these increases, Canada Post’s rates continue to compare favorably to those of other postal systems globally. These adjustments reflect broader efforts to adapt to shifting consumer needs, mitigate financial losses, and redefine the role of a national postal service in the digital era.

The history of Canada’s postal service traces back to 1763, following the Treaty of Paris, when Canada was ceded to Great Britain. Benjamin Franklin and John Foxcroft, joint deputy postmasters general for British North America, appointed Hugh Finlay as the first postmaster in Quebec. Finlay initiated weekly mail delivery between Quebec and Montreal. In 1851, 16 years before Confederation, responsibility for the postal service was transferred from the British Post Office to the Province of Canada, making it one of the first departments of the future federal government. By 1854, postal cars aboard trains revolutionized mail transport, a service that continued until 1971. Confederation in 1867 unified postal systems across British North American colonies, creating Canada’s first national network. In 1918, Canada saw its first official airmail flight between Montreal and Toronto. In 1981, Canada Post transitioned into a Crown corporation.

Canada (SOR/2024-262) December 18, 2024