Friday, March 11, 2016 11:15 am

WASHINGTON, D.C. -- News outlets are reported that the United States and Canada vowed this week to settle a long-standing dispute over Canadian exports of softwood lumber which could erupt again this October when an earlier agreement on the problem expires.

U.S. producers complain that Canadian softwood lumber, which tends to come from government-owned land, is subsidized.

A 2006 deal that ended the last dispute expired in October 2015 but both sides agreed to take no action for a year after that.

Faced with the prospect of the U.S. timber lobby pressing for penalties when the grace period runs out this October, President Barack Obama and recently elected Canadian Prime Minister Justin Trudeau asked officials to work out possible solutions and report back within 100 days.

Major companies operating in Canada which could be affected if the U.S. lobby pushed for higher duties on lumber include Canfor Corp, Tembec, Resolute Forest Products and West Fraser Timber Co.