Canada Post has defeated a North American Free Trade Agreement (NAFTA) challenge from UPS, which alleged that the postal utility engaged in unfair competition, bringing an end to a seven year-old dispute between the two delivery companies. UPS launched a claim for US$160 million against the Canadian government in April 2000under the NAFTA.

UPS contended Canada Post has an unfair advantage because its services such as Express Post and Priority Courier draw on an infrastructure of sorting facilities, mailboxes and post offi ces that private companies must provide for themselves.