UPS and Canada Post Embroiled in NAFTA Dispute

A challenge to the North American Free Trade Agreement involving Canada Post got started in an Ontario court Monday, with plaintiffs arguing they are trying to protect Canada’s public services, according to wire service reports.

The challenge, launched by the Canadian Union of Postal Workers and Council of Canadians arose out of a $200-million claim against the government by United Parcel Service.

The package delivery giant alleged that Canada’s publicly funded mail system amounts to an unfair subsidy that gives Canada Post an unfair advantage over private-sector courier companies.

The UPS claim could damage Canada Post’s ability to deliver cost-effective services across the country. And the plaintiffs argue the stakes are even higher than that since the NAFTA provision in question could allow private companies to challenge most any public service – even health care.

The two groups argue that Chapter 11 of NAFTA threatens sovereignty and democracy in Canada and the Canadian laws that enforce them should be declared null and void.