June 13, 2007 10:25 ET

Canada Post Pleased with NAFTA Decision

OTTAWA, ONTARIO--(Marketwire - June 13, 2007) - Canada Post is pleased with the decision by an international tribunal to a legal challenge under Chapter 11 of the North American Free Trade Agreement (NAFTA) that will finally put an end to false allegations.

"Canada Post has been exonerated of claims launched by UPS of America Inc. back in 2000", said Moya Greene, president and CEO of Canada Post. "For years, UPS has made allegations of unfair competition in Canada, and in every instance the allegations have been rejected by regulatory agencies and independent experts. And now the international tribunal has ruled that the allegations have no foundation."

The UPS claim was based on allegations that Canada Post was using its exclusive privilege for Lettermail to compete unfairly in the courier business, in violation of the provisions of the NAFTA.

"To put things in context, this dispute was about money", said Ms. Greene. "The United Parcel Service of America is attempting to force postal administrations around the world out of the parcel and courier business in order to increase their market share. Canada Post has been in the parcel delivery business for more than a hundred years and UPS, like other competitors, has every opportunity to compete in Canada and has their share of the very vigorous Canadian courier market.

"Even though it took seven years to get resolved, the decision confirms that Canadians can maintain their trust in Canada Post."

Contact Information

  • Canada Post
    Media Relations, Ottawa