TORONTO – The Council of Canadians and the Canadian Union of Postal Workers (CUPW) will appeal the recent Ontario Superior Court ruling that Chapter 11 of NAFTA is constitutional.

The groups asked the Court to find that the private enforcement of NAFTA rules is unconstitutional because it undermines the role of Canadian courts and offends both the Charter of Rights and Freedoms and the Bill of Rights.

Under Chapter 11, foreign corporations can sue the federal government for compensation when legislation, policy, or the delivery of public services interferes with present or future profits.

In dismissing the groups’ application, the Judge acknowledged that NAFTA creates foreign-investor rights that infringe on sovereignty, and that are enforced in a way that is neither transparent nor subject to proper review. However, she found that the private enforcement of NAFTA rights was nevertheless constitutional.

“We believe that legal disputes between individual corporations and the state, impacting on a wide range of legislation and public policy, cannot be placed beyond the reach of the Constitution and Charter,” said trade lawyer Steven Shrybman. “NAFTA tribunals do not apply Canadian law or legal principles such as fundamental justice and equality.”

CUPW and the Council of Canadians launched their court case against NAFTA in 2001 in response to United Parcel Service's (UPS) lawsuit against Canada. UPS is suing Canada under NAFTA for $160 million USD. It asserts that Canada’s publicly funded postal system gives Canada Post an unfair advantage when delivering courier services in competition with private providers.

“A win for UPS would cost taxpayers millions and undermine our public postal service,” said CUPW National President Deborah Bourque. “Furthermore, most crown corporations and public agencies deliver some services that are in competition with the private sector. The suit launched by UPS could have just as easily been over public education or health care.”

“Investment provisions like Chapter 11 should be removed from NAFTA and all other trade agreements signed by Canada,” said Council of Canadians Trade Campaigner Jean-Yves LeFort. “The willingness of our government to submit to these rules reflects an overwhelming concern for the commercial interest of foreign corporations at the expense of the public interest.”

The groups will appeal the decision to the Ontario Superior Court of Appeal. They expect the case to be heard later this year or in early 2006.

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For more information, contact:
Dylan Penner, Media Officer, Council of Canadians: (613) 233-4487, ext. 249; 1-800-387-7177, ext. 249; .