FOR IMMEDIATE RELEASE

June 19, 2006

TORONTO - The Council of Canadians, Canadian Union of Postal Workers and Charter Committee on Poverty are taking the constitutionality of the North American Free Trade Agreement (NAFTA) to a higher court with their appeal before the Court of Appeal for Ontario. This appeal will be heard on June 19, 20 and 21.

In July 2005, a lower court judge dismissed the group's constitutional challenge against NAFTA rules that allow foreign corporations to sue governments. Nevertheless, the judge acknowledged that NAFTA does create foreign-investor rights that infringe on sovereignty and that are enforced in a way that is neither transparent nor subject to proper review. The CUPW, Council and Committee filed an appeal before the Court of Appeal for Ontario on August 12, 2005.

"This appeal raises fundamental questions of democracy and sovereignty," said trade lawyer Steven Shrybman. "Legal disputes between corporations and governments, impacting on a wide range of law and public policy, cannot, we argue, be placed beyond the reach of the Constitution and Charter."

The Council, CUPW and Committee believe that NAFTA rules threaten public services and democracy. "This threat is illustrated by United Parcel Service's $160 million USD ($175 million CAD) lawsuit which alleges that Canada's publicly funded network of post offices and mailboxes gives Canada Post an unfair advantage over the US company." said CUPW National President Deborah Bourque. "A win for UPS would cost taxpayers millions and undermine our public postal service."

"The UPS case could set a dangerous precedent," said Council of Canadians Trade Campaigner Jean-Yves LeFort. Most public institutions deliver some services that are in competition with the private sector. The suit launched by UPS could have just as easily been over public education or health care."

The groups hope to hear from the Court of Appeal within six months. The NAFTA tribunal hearing the UPS complaint is expected to render a decision by the end of the year

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