MEDIA RELEASE
FOR IMMEDIATE RELEASE
October 31, 2002
Trick or treat: Trick, says UPS in its $250-million commercial suit against Canada
OTTAWA, ONTARIO - "UPS is trying to use NAFTA to crush Canada Post and other public services!" Such was the harrowing message delivered today by actors and protesters who gathered in front of UPS's Ottawa outlet at the corner of Bank and Albert Street to express their deep concern that NAFTA's investor-state provisions are being used to attack our public services.
The theatrical play has been jointly organised by the Council of Canadians and the Canadian Union of Postal Workers to coincide with the FTAA Ministerial meeting, which is currently taking place in Quito, Ecuador. Canada and the United States have already expressed their intention of adding the investor-state provisions (laid out in Chapter 11 of NAFTA) to the Free Trade Area of the Americas document, a move both organisations are denouncing as detrimental to people throughout the Americas.
Such provisions allow a corporation of a signatory party to directly sue another government for decisions that are deemed to adversely affect business.
"The Canadian Union of Postal Workers thinks that United Parcel Service's NAFTA complaint is very scary," says Deborah Bourque, National President of CUPW. If UPS wins or settles its complaint, the post office will have less money to provide service to everyone, no matter where they live. And UPS isn't likely to fill any void left by Canada Post because it's in business to make a profit, not provide a service.
"Once again, Canadians are being swindled by the investor-state provisions of NAFTA," says 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"
United Parcel Service of America Inc. (UPS), the world's largest express carrier and package delivery company, has invoked investor state procedures to challenge public sector postal services. UPS is claiming US$ 160 million (CA$250 million) in damages.
The gist of the claim is that Canada Post has taken advantage of its monopoly position to underwrite the costs of its competitive parcel and courier delivery services. But in an era when many public agencies deliver at least some services in competition with the private sector, that argument could apply to virtually all public sector services - from water supply to health care.
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