NAFTA: UPS vs Canada Post

[Kyteland]

This is my first foray in to P&N. Please be gentle.

I heard about this on the radio yesterday and tried to find more info about it.

Full article link

UPS suffered a significant and strategic defeat on Nov. 22 (2002), when a substantial part of its claim against Canada and Canada Post was dismissed by the international arbitration Tribunal. At stake are more than $250 million in damages UPS argues were caused by Canada's alleged failure to comply with its obligations under NAFTA.

....

UPS is still trying to convince the NAFTA tribunal that it should be allowed to use Canada Post's delivery networks. Canada Post is a government supported monopoly and UPS can't compete. It wants access to their delivery routes so that they can offer a competitive service.

On the other, without the extra revenues generated by that delivery network Canada Post would no linger be able to run post offices in smaller canadian towns, which currently run at a loss. The profits from their protected monopoly are used to offset the cost of running the regular mail service in backwaters of Canada.

Which is kind of a pickle. Canada has international obligations with NAFTA, yet it also has oblications to deliver mail to it's citizens. Does anyone have more information on the situation, and what are your insights?

 

[colonel]

I worked 9years in the UPS and I know how they are: greedy. If Canada Post allow UPS take the routes UPS will take the whole country in a few years, UPS has a lot assets and they have american politician in theirs side.

 

[miguel]

Originally posted by: colonel
I worked 9years in the UPS and I know how they are: greedy. If Canada Post allow UPS take the routes UPS will take the whole country in a few years, UPS has a lot assets and they have american politician in theirs side.

Isn't the whole point of NAFTA to allow free trade? Why should Canada Post be allowed to keep a monopoly?

 

[CADsortaGUY]

Originally posted by: colonel
I worked 9years in the UPS and I know how they are: greedy. If Canada Post allow UPS take the routes UPS will take the whole country in a few years, UPS has a lot assets and they have american politician in theirs side.

True but we also have alot of competition here in the states. FedEx, AirBorne, and other smaller couriers - PLUS the USPS. Canada is obligated to uphold their end of the agreement and if that means they have to open thier routes - then so be it. They chose NAFTA and should be held to account - maybe they should have thought about the implications of adopting such an agreement. I know the US is sure second guessing the agreement in some cases.

CkG

 

[dahunan]

Canada Post is the slowest delivery service since the wagon trains.....

 

[sandorski]

Hmm, so UPS wants to use Canada Poste for delivery? I don't get what the problem is, UPS has their trucks and does business here already. Perhaps if they were a Phone or Power company that wanted access to Public Transmission lines they'd have a legitimate arguement, but how you equate that with trucks, people, and branches is a mindboggler.

Is the USPS used in such a manner?

 

[sandorski]

Kyteland: Thanks for bringing this up, I never knew this was even happening. So I can't elaborate on it, but I can elaborate on who the Council of Canadians are: They are a fairly outspoken group that was formed from those opposed to the FTA and NAFTA. They are decidedly Pro-Canadian, especially where the Media, Culture, Social Issues are concerned.

 

[colonel]

Isn't the whole point of NAFTA to allow free trade?

yeah I know but we dont allow mexican trucks take the goods to New England (complaning and excuses are Mexican trucks are unsafe for our highways) becuase the USA unions are helping our workers.

 

[dmcowen674]

Originally posted by: Kyteland
This is my first foray in to P&N. Please be gentle.

I heard about this on the radio yesterday and tried to find more info about it.

Full article link

UPS suffered a significant and strategic defeat on Nov. 22 (2002), when a substantial part of its claim against Canada and Canada Post was dismissed by the international arbitration Tribunal. At stake are more than $250 million in damages UPS argues were caused by Canada's alleged failure to comply with its obligations under NAFTA.

....

UPS is still trying to convince the NAFTA tribunal that it should be allowed to use Canada Post's delivery networks. Canada Post is a government supported monopoly and UPS can't compete. It wants access to their delivery routes so that they can offer a competitive service.

On the other, without the extra revenues generated by that delivery network Canada Post would no linger be able to run post offices in smaller canadian towns, which currently run at a loss. The profits from their protected monopoly are used to offset the cost of running the regular mail service in backwaters of Canada.

Which is kind of a pickle. Canada has international obligations with NAFTA, yet it also has oblications to deliver mail to it's citizens. Does anyone have more information on the situation, and what are your insights?

Welcome to P&N and excellent first post Kyteland.

I hate to say it but since the Canadian Leadership succumbed to U.S. Tyranny, everybody has to suffer up there just like down here, sorry.