OTTAWA, May 23 (Reuters) - Canadian Pacific Kansas City ( CP )

said talks with the Teamsters Rail Conference Union have

hit a deadlock, predicting that a legal strike or a lockout

would not likely occur before mid-July.

In a statement posted on the company's website late on

Wednesday, CPKC said the two sides had met from May 15 to 21

with the aid of federal mediators.

"Regrettably, and despite our best efforts, no progress

was made. Additional bargaining dates have not been scheduled at

this time," it said.

Earlier this month, workers at CPKC and Canadian National

Railway Co ( CNI ) who are represented by the Teamsters voted

overwhelmingly to strike as early as May 22.

But Ottawa asked the Canadian Industrial Relations Board

(CIRB) to rule whether a strike would have safety implications,

pushing back the potential start date for a stoppage.

A legal strike or lockout cannot occur until the CIRB

renders a decision.

"While it remains unclear how long it will take for the CIRB

to issue a decision, based on precedent, it is unlikely the

parties will be in a position to initiate a legal strike or

lockout before mid-July or later," it said.

A work stoppage could be a major dent to Canada's supply

chain and negatively impact major exports, including wheat,

canola, potash and coal.

The Teamsters were not immediately available for comment.