The Honourable David Emerson, Minister of International Trade, and the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, today welcomed a favourable decision from the arbitration tribunal in the UPS v. Government of Canada dispute initiated under NAFTA’s Chapter 11.

“I am pleased with the tribunal’s decision. It confirms that Canada is meeting its NAFTA obligations. We did not discriminate against UPS and treated them fairly,” said Minister Emerson.

In January 2000, United Parcel Service of America, Inc. initiated a legal challenge against Canada, alleging that Canada Post was benefiting from undue privileges as a government-owned corporation. The hearing was held in December 2005 in Washington before a tribunal constituted under NAFTA Chapter 11. The tribunal issued a final decision on this matter on June 11, 2007, confirming that Canada had met its NAFTA obligations and dismissing UPS’s claim for damages.

“Canada’s right to operate a public postal service was never challenged,” declared Minister Cannon, “but some Canada Post specialized services were targeted. We are very satisfied with the tribunal’s decision.”

Under the NAFTA, Chapter 11 provides rights and protections for investors and investments in member countries. Companies that believe these investor rights have been violated have direct access to dispute settlement before an impartial arbitration tribunal.