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Canada Post and Courier Services
The Point
 UPS is pursuing a $230 million monopoly-abuse suit against the Canada Post Corporation through NAFTA.
UPS says that the Canada Post Corporation receives preferential treatment from the Canadian government that is not extended to other courier companies.
A portion of revenues generated from other areas of Canada Post’s operations is used to subsidize the courier operations.
As a result, the Canada Post Corporation is able to price its courier products at artificially low rates.
The Counterpoint
The Canada Post Corporation’s courier services face competition from national and international firms.
UPS is a large U.S. courier firm with financial strength, networks, and advanced technology that has expanded aggressively into Canada.
The mission of Canada Post Corporation is to provide universal mail service.
The Canada Post Corporation rejects the allegations of UPS that its courier services have been improperly subsidized.
The Canada Post Corporation believes in fair competition.
Useful background items are:
UPS statement of claim against Canada Post
UPS
Canada Post
Questions for Discussion
What side, if any, do you take in the case of UPS vs the Canada Post Corporation?
Should the Canada Post Corporation be allowed to subsidize its courier services with revenues generated from its other services?
Is the Canada Post Corporation exhibiting behaviour contrary to NAFTA?
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