UPS vs. Canada Post: A 2000 Courier Clash Over NAFTA’s Fair Trade Rules

The document is a detailed legal statement of claim submitted by United Parcel Service of America Inc. (UPS) against the Government of Canada under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) and the North American Free Trade Agreement (NAFTA). The dated 2000 claim alleges that Canada has breached its NAFTA obligations by providing preferential treatment to its state-owned postal monopoly, Canada Post Corporation, to the detriment of UPS, a foreign-owned competitor in the courier industry.

The main points of contention include:

1. National Treatment: UPS alleges that Canada has breached its national treatment obligations under NAFTA by providing more favorable treatment to Canada Post than to foreign-owned competitors like UPS in the courier industry. This includes preferential customs clearance processes, tax exemptions, and other regulatory advantages that allegedly put UPS at a competitive disadvantage.
2. Minimum Standard of Treatment: The claim also asserts that Canada has failed to provide UPS with treatment in accordance with international law, as required by NAFTA. This includes allegations of anti-competitive behavior by Canada Post, lack of transparency, and failure to investigate and resolve complaints.
3. Monopolies and State Enterprises: UPS argues that Canada has failed to regulate Canada Post’s monopolistic and anti-competitive practices, which is inconsistent with Canada’s obligations under NAFTA. This includes cross-subsidization of competitive services using monopoly infrastructure, predatory pricing, and other anti-competitive practices.
4. Damages: UPS claims that as a result of Canada’s breaches of its NAFTA obligations, it has suffered significant financial losses, including loss of market share, increased costs, and reduced profitability. UPS seeks compensation for these damages.

The document provides a comprehensive overview of the legal basis for the claim, the factual background of UPS’s operations in Canada, the competitive landscape of the courier industry, and the specific allegations of preferential treatment and anti-competitive practices by Canada Post. It also outlines the procedural history of the dispute and the relief sought by UPS.

Overall, the statement of claim represents a significant legal challenge by a foreign investor against a NAFTA Party, alleging violations of key provisions of the agreement related to investment protection and fair competition.

Document Archive

Statement of Claim Under the Arbitration Rules of the United Nations Commission on International Trade Law and the North American Free Trade Agreement, 2000 [106 Pages, 63MB]

 

 

 

 

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