Nafta again

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

I just picked this up from Sam Lanfranco's labor list.

The New York Times                       April 24, 2000

UPS Sues Canada Over Postal System

ATLANTA (AP) -- United Parcel Service is suing Canada, alleging that the

country's postal service has been allowed to use its mail monopoly to
expand
into the courier business and compete unfairly. The complaint, called a
statement of claim under the North American Free Trade Agreement,
accuses
the government of allowing Canada Post Corp. to use the infrastructure
built
for letter delivery for its courier products. It seeks an ``absolute
bare
minimum'' of $160 million in damages starting in 1997, said Susan Webb,
a
spokeswoman for UPS Canada, based in Mississauga, Ontario.

But the loss amount is ``a bit of a loose figure,'' Webb said of damages
UPS
feels it has sustained from lost market share. UPS filed the suit last
week
with the Justice Department in Ottawa.

The complaint names Canada as the defendant because Atlanta-based UPS
claims
the government violated NAFTA terms concerning investments and
monopolies.
The claim also says Canada Post doesn't have to collect or pay taxes on
packages it imports to Canada, unlike other courier companies that
operate
there. UPS also says that the Canada Customs and Revenue Agency pays
Canada
Post several million dollars each year based on package import volumes.



--

Michael Perelman
Economics Department
California State University
michael@xxxxxxxxxxxxxxxxx
Chico, CA 95929
530-898-5321
fax 530-898-5901