United Parcel Service of America, Inc., a U.S. parcel delivery service provider, has submitted claims against Canada under the UNCITRAL rules. UPS claims that Canada Post, which UPS alleges is a letter mail monopoly, engages in anti-competitive practices: in providing its non-monopoly courier and parcel services (Xpresspost and Priority Courier), it, allegedly, unfairly uses its postal monopoly infrastructure to reduce the costs of delivering its non-monopoly services. UPS alleges that Canada has breached its obligations under the NAFTA (1) to supervise a "government monopoly" and "state entity" (Arts. 1502(3)(a) and 1503(2)); (2) to accord treatment no less favorable than it accords, in like circumstances, to its own investors (Article 1102); and (3) to accord treatment in accordance with international law (Article 1105). UPS seeks US$160 million in damages.
On November 22, 2002, the Tribunal issued an Award on Jurisdiction. It dismissed a number of UPS's claims, including UPS's claims under NAFTA Chapter Fifteen, to the extent those claims were not limited to alleged violations of obligations in Section A of NAFTA Chapter Eleven, and UPS's Article 1105 claim (because there is no customary international law prohibiting or regulating anticompetitive behavior). Also, the Tribunal rejected Canada's jurisdictional challenge to UPS's Article 1102 claim, and joined two other challenges to jurisdiction to the merits. (For the award and further information, click here.)