TORONTO – Today, the Council of Canadians and Canadian Union of Postal Workers (CUPW) are filing to appeal a Court decision concerning the constitutionality of NAFTA investment rules.

The groups had asked the Court to declare the private enforcement of NAFTA’s investment rules 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 where legislation, policy or even the delivery of public services interferes with present of future profits.

“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 are not competent to 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 the United Parcel Service's (UPS) lawsuit against Canada. UPS is suing Canada for $160 million USD in damages under NAFTA arguing that our publicly funded network of mailboxes and post offices gives Canada Post an unfair advantage when delivering courier services that are in competition with private courier services.

“A win for UPS would cost taxpayers millions and undermine their public postal service, said CUPW National President Deborah Bourque. “What's more, the suit launched by UPS could just as easily be over public education or health care. Most crown corporations and public agencies deliver some services that are in competition with the private sector.”

Investment provisions like Chapter 11 should be removed form NAFTA and other trade agreements signed by Canada,” said Jean-Yves LeFort of the Council of Canadians. “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 are appealing the decision to the Ontario Superior Court of Appeal and expect the case to be heard later this year or 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; .

Joseph Zebrowski, Communications, Canadian Union of Postal Workers, (613) 236-7230 (7914) jzebrowsik@cupw-sttp.org.