(OTTAWA) U.S. courier giant United Parcel Service (UPS) is trying to grab the country's most lucrative courier market away from Canada Post - and it's using the North American Free Trade Agreement (NAFTA) to do it, say the Canadian Union of Postal Workers and The Council of Canadians.

In a claim made public by the Department of Foreign Affairs and International Trade last week, UPS is demanding that Canada pay $100 million (U.S.) under the investor-state provisions of Chapter 11 in NAFTA. UPS alleges that Canada Post used the existing infrastructure of Canada Post mail delivery service to expand into the courier business, and has also used the Canada Post infrastructure to undercut the service and delivery charges of other courier companies.

"Once again, Canadians are being swindled by the investor-state provisions of NAFTA," said Maude Barlow, Volunteer Chairperson of The Council of Canadians. "It's outrageous that such disputes have the potential to cost Canadians hundreds of millions of dollars and actually destroy Canadian control and dominance of our own market."

"Only Canada Post delivers to communities all across Canada," said Deborah Bourque of the Canadian Union of Postal Workers. "The UPS challenge is about acquiring the infrastructure of Canada Post in lucrative areas like the Quebec Windsor Corridor. They are not interested in delivering courier packages to remote parts of the country where access is difficult and expensive." Ms. Bourque added.

"The UPS challenge threatens the survival of courier services to rural communities across Canada," said Cynthia Patterson, Chairperson of Rural Dignity. "Whereas Canada Post's services are accessible and affordable all over Canada, UPS has already abandoned many rural communities," she added.