Canada and the European Union are currently negotiating a trade agreement. The draft Canada-EU agreement was a well-guarded secret until its release earlier this month by the Trade Justice Network, a coalition of groups which includes CUPW. This draft reveals that the federal government may be putting public postal service and other public services at risk.

Draft raises major concerns

The postal and courier section of the draft agreement sets up a system to facilitate competition for all postal and courier services liberalized under the agreement.

There is a requirement for an independent regulatory body and licenses for service suppliers that fall within the scope of providing “universal service”.

It is not yet clear what the agreement liberalises. Much will depend on what the federal government agrees to exempt or commit.

The agreement could deregulate international letters.

It could also dramatically reduce Canada Post’s exclusive privilege and revenue stream by deregulating addressed admail letters.

Significance of lettermail

Canada Post has an exclusive privilege to handle letters so that it is able to generate enough money to provide affordable postal service to everyone, no matter where they live in our huge country.

The corporation’s lettermail volumes declined for the first time in 2008. It clearly needs international letters and other letters as a source of revenue to maintain and improve universal public postal service.

Government’s position on deregulation

In 2008, the Canada Post Corporation Strategic Review (CPCSR) report recommended against a general deregulation of Canada Post’s lettermail, with the exception of outbound international letters.

In February 2010, Minister of State for Transport Rob Merrifield stated Canada Post will continue to have the exclusive privilege for domestic mail throughout Canada.

The federal government has repeatedly attempted to pass legislation deregulating outbound international letters. One bill (C-14) died when the 2008 election was called. Another (C-44) died when Parliament was prorogued in 2009. The government is currently attempting to ram deregulation of international letters through Parliament as part of an omnibus budget bill (C-9) which covers “other measures”.

The Conservatives also appear to be pursuing another strategy to deregulate international letters and perhaps other lettermail. It looks like they are attempting to get through the back door of Canada-EU treaty negotiations, what they have been unable to accomplish through democratic and Parliamentary processes.

Opposition to deregulation

There is widespread opposition to postal deregulation in Canada. The 2008 CPCSR report said, “There appears to be little public support for the privatization or deregulation of Canada Post.” The report did not provide any analysis or rationale for making the recommendation to deregulate international letters.

You can obtain information about the draft Canada-EU agreement by going to: http://tradejustice.ca