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United Parcel Service Of America (UPS) Vs The Government Of Canada

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The following NAFTA case is between the United Parcel Service of America (UPS) V.S the Government of Canada over the issue of Canada Post Corporation and its subsidiaries. The United Parcel Service (UPS) made a claim against the Government of Canada for breach of NAFTA Articles Section A of Chapter 11, Chapter 12, and Chapter 15. This case was brought up for Tribunal due to UPS being believing that they are being treated unfairly in Canada, by Canada Post and their subsidiaries. They argue that Canada Post, being a state enterprise of the Government of Canada, has abused its monopoly advantages to benefit themselves and their subsidiaries. UPS invoked Section B of NAFTA’s Chapter 11.

A Notice of Arbitration was served by UPS to Canada on April 19, 2000 under the arbitration rules of United Nations Commission on International Trade Law (UNCITRAL) and NAFTA (Government of Canada, 2016). The case took …show more content…
They are a multimillion dollar American parcel and package delivery company, which operates in more than 220 countries. Its headquarters is located in Atlanta, America. Besides being the largest parcel and package delivery company, UPS also offers logistics and freight forwarding through UPS supply chain solutions and less-than-truckload and truckload freight transportation (Hoovers, 2016). UPS delivers more than 18 million packages and documents per business day worldwide.

On February 28 of the year 1975, UPS opened their first Canadian branch in the basement of a Toronto hotel (UPS, 2016). It has since progressed and expanded its business in the country rapidly. In Canada, UPS offered messenger, courier, and small packages. As such, their main competitor in Canada is Purolator, a company bought over and owned by Canada Post Corporation. Purolator and other Canada Post subsidiaries provides freight and parcel delivery services in Canada, similar to the services of

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