Dear Mr. Lemelin,

Thank you for your letter of February 23, 2010 in which you express your concerns related to the treatment of postal and courier services in the context of negotiations toward a Comprehensive Economic and Trade Agreement (CET A) between Canada and the European Union (EU). I would like to assure you that the substantial correspondence that exists between this Department and the Canadian Union of Postal Workers (CUPW) on these issues has served to inform Canadian negotiators about your concerns.

With respect to your concerns regarding whether Canada intends to make any market access commitments for postal and courier services, please be assured that Canada is pursuing an approach that is fully consistent with Canada's other international trade agreements and which preserves Canada's public postal system. In Canada's FTAs to date, this has been achieved through the listing ofa broad reservation preserving Canada Post's exclusive right to collect, transmit and deliver letter mail addressed in Canada.

Your letter also seeks clarification as to whether Canada is considering a change to the classification of postal and courier services or adopting potential pro-competitive regulatory principles for the postal sector. In the context of all of its international trade negotiations, including negotiations with the EU, Canada has taken the position that the current classification is adequate to respond to the demands of our negotiating partners for liberalization. Meanwhile, discussions with the EU with respect to the possible application of pro-competitive regulatory principles are still at an early stage, but Canada does not see value in prescribing regulatory approaches to the sector under the rubric of trade agreements.

Finally, the decision of whether Canada liberalizes its regime for international outbound mail will be a domestic policy decision and in this regard falls within the mandate of the Minister of Transportation.

The Government of Canada, together with provinces and territories, and in consultation with Canadian stakeholders, including the Canadian Union of Postal Workers, will develop a negotiating mandate that will reflect the best interests of Canada. In this regard, I would invite you to contact the Department's Services Trade Policy Division at 613-944-0487 should you wish to provide further views or seek additional clarification regarding Canada's approach on this issue.

Thank you again for sharing the views of your organization on this important issue.

Sincerely,

Steve Verheul
Chief Negotiator
Canada-EU CETA