Ottawa to miss softwood deadline: Sources

[CHIMO]

VANCOUVER — The federal government won't meet its self-imposed Oct. 1 deadline to implement the softwood lumber agreement with the United States, The Canadian Press has learned.

Sources say complications surrounding the withdrawal of more than 30 pieces of trade litigation, including resistance by some exporters to shelving their suits, make it unlikely a planned softwood border tax will start being levied as of Sunday.

The U.S. government demanded as part of the agreement that all trade litigation be withdrawn as a precondition for lifting punitive lumber duties.

If Ottawa moves ahead as planned and the U.S. duties remain in place, lumber shipments would find themselves facing a 15 per cent export tax as they leave Canada and a 10.8 per cent import duty when they cross into the United States.

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