But Mr Emerson was optimistic a deal would eventually be rubber-stamped and said negotiations could continue through the summer.

One deadline has already been missed for sanctioning a seven-year agreement which would introduce an export tax on Canadian softwood lumber shipments to America, replacing the current US duties.

The two countries agreed to resolve the long-running conflict nearly two months ago via a new seven-year agreement. But reaching a consensus on the details has remained elusive.

Meanwhile, lumber producers in British Columbia are backing the province’s objections to key parts of the proposed agreement.

The Council of Forest Industries has written to Canadian prime minister Stephen Harper, arguing that market-based timber pricing needs to be addressed in the talks.

A number of provincial remanufacturers are also worried about future prospects due to wording in the proposed agreement which would require them to pay a border tax based on their finished product, not the value of wood bought from sawmills.