The future of Canadian Postal Services goes on trial in Washington D.C.
The future of Canada’s public post office will be decided by a private trade tribunal operating from the World Bank headquarters in Washington D.C. The hearings over our post office will run from December 12-17th.
The Canadian Union of Postal Workers (CUPW) and the Council of Canadians (the Council) are concerned that the tribunal, which is looking at a complaint filed by United Parcel Service (UPS), could issue a decision that has disastrous implications for postal and other public services.
UPS is using Chapter 11 of the North American Free Trade Agreement (NAFTA) to demand financial compensation of 185 million CDN from Canada’s federal government. This amount will double if UPS wins damages to date.
UPS claims its investments are being limited by Canada’s publicly funded network of mailboxes and post offices. It believes this network gives Canada Post an unfair advantage when delivering parcel, express and courier services that are in competition with private courier services.
“If UPS wins, Canada Post may opt to get out of the courier business which would spell disaster for the longer term financially viability of Canada Post. The corporation needs the profits it gets from the courier business to provide universal service,” says CUPW National President Deborah Bourque.
Ottawa-based trade lawyer Steven Shrybman, who represents the groups, says that the UPS case also spells trouble for other public services because most compete at least to some extent with the private sector. “If UPS succeeds, the case is likely to open floodgates to claim by other US companies seeking to break into the health care or water service markets in Canada,” says Shrybman.
Jean-Yves Lefort, trade campaigner for the Council of Canadians, argues Canada must rescind these investment rules adding “it is outrageous that NAFTA allows the future of Canadian public services to be determined by a private arbitral tribunal operating behind closed doors in Washington D.C.”
