TORONTO, (Jan. 26, 2005) — The Canadian Union of Postal Workers and Council of Canadians have asked Ontario’s Superior Court of Justice to declare Chapter 11 of NAFTA null and void in response to a $200-million claim against the government by giant U.S.-based courier company UPS.

UPS claims federal subsidies for Canada’s public mail system gives Canada Post an unfair advantage over private-sector courier companies.

The Crown Corporation also owns 94 per cent Purolator Courier — a 1,300-unit parcel delivery fleet that competes directly with UPS and Fed-Ex.

The union claims the NAFTA provisions cited by UPS in their suit threaten Canadian sovereignty and would damage Canada Post’s ability to deliver cost-effective services across the country.

Moreover, the provision — which could allow private companies to challenge public services deemed to harm their business through non-judicial tribunals — could also threaten public programs like socialized health care or the CBC, the union argues.

The union says this is the first time a court will consider the constitutionality of international trade rules that allow foreign corporations to sue governments. Arguments in the case began this week.

“UPS claims that simply by having a public postal system, Canada is allowing unfair competition,” Jean Yves Lefort, a Council of Canadians campaigner, said in a release. “By this logic, every public service from health care to education to the CBC could face similar lawsuits. We don’t intend to let foreign corporations destroy our public services without a fight.”