UPDATE 2-U.S., Canada report major differences in lumber dispute

(Adds comment from BC Lumber Trade Council, paragraphs 8-9)
By David Ljunggren
OTTAWA, June 17 (Reuters) - Talks between the United States
and Canada on a long-running dispute over softwood lumber
exports have bogged down amid "significant differences," the two
nations said on Friday, potentially paving the way for a fresh
round of lawsuits.
U.S. producers complain that Canadian lumber is subsidized,
and have in the past launched trade challenges that resulted in
the United States imposing billion of dollars in tariffs.
The most recent round of arguments ended with a 2006 deal
that expired in October 2015. Both sides agreed to take no
action for a year after that, but without a new treaty, U.S.
firms have made clear they will file new damage claims.
In March, President Barack Obama and Prime Minister Justin
Trudeau asked officials to work out possible solutions and
report back within 100 days. That deadline runs out on June 18.
"Significant differences remain between us," said U.S. Trade
Representative Michael Froman and Canadian Trade Minister
Chrystia Freeland in a joint statement.
"The United States and Canada have made significant advances
in exploring the key issues and priorities ...(and) are
committed to continuing negotiations."
Reuters reported on June 10 that the talks were making
little progress. Canadian officials say one challenge is that
domestic producers are split over the best strategy.
BC Lumber Trade Council Chief Executive Susan Yurkovich said
she believes an agreement can be reached that will provide
certainty for lumber producers on both sides of the border.
"However, if a reasonable agreement cannot be reached, we
are also prepared to work alongside the Canadian government to
defend the industry against any potential trade actions brought
by the United States," Yurkovich said in a statement.
Major Canadian lumber firms include Canfor Corp CFP.TO ,
West Fraser Timber Co WFT.TO , Interfor Corp IFP.TO and
Resolute Forest Products Inc RFP.N .