WASHINGTON, D.C. — A senior U.S. government official has warned his Washington colleagues that next week’s softwood lumber talks in Ottawa will be crucial if an agreement is to take place.

Grant Aldonas, undersecretary of commerce for international trade, says "They are very important because we are coming down to the deadline. If we are going to make progress on doing something fundamental, the time is now."

The remarks come as Canada examines its options, should the talks break down, of asking NAFTA or the World Trade Organization to step in.

Industry observers seem skeptical that a last-minute deal can be reached as both sides still seem miles apart on several key issues.