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Toronto Star | By Kathleen Kenna and William Walker | March 15, 2002

High-level Canadian and American officials have agreed to "spare no effort" in trying to reach a new softwood lumber agreement by next week.

Prime Minister Jean Chretien and U.S. President George W. Bush discussed the trade irritant - which threatens a $10 billion (U.S.) industry in Canada - at a White House meeting yesterday. And Canadian trade officials, including Trade Minister Pierre Pettigrew, met American officials to try to resolve the dispute over the 19.3 per cent duty on softwood lumber exports.

Canada has already appealed the U.S. tariffs - prompted by an American lumber industry that believes Canadian provinces unfairly subsidize producers - to the World Trade Organization. But both sides are aiming to reach an agreement to avoid the need for a WTO ruling.

They've set a March 21 deadline for a deal.

That's the date the U.S. Commerce Department is expected to announce the temporary tariff will become permanent U.S. policy.

Officials said enough progress was made yesterday to continue talks aimed at a deal by next week.

Pettigrew is demanding Canada receive guaranteed access to the U.S. market for its softwood lumber products, without which he is predicting no deal can be reached and the dispute will be left in the hands of the WTO.

Negotiations between the two countries are expected to continue through this weekend - with instructions from Bush and Chretien to find a deal - and right up to Thursday's deadline.Toronto Star:

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