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A wildfire burns on a mountain in the distance behind a house that remains standing on the Ashcroft First Nation, near Ashcroft, B.C., on July 9, 2017.DARRYL DYCK/The Canadian Press

TOP STORIES

Breaking down the U.S. NAFTA demands

The Trump administration has laid out more than 100 demands heading into North American free-trade agreement talks, which could start as soon as Aug. 16.

Here are the highlights:

Dispute panels: The U.S. wants to get rid of Chapter 19 of NAFTA, which allows for panels to hear trade complaints. Americans critics have complained that the panels – a key Canadian demand during original talks – regularly side in Canada's favour.

Taxes and duties: Right now, Canadians need to pay taxes or duties on U.S. purchases of more than $20. Washington wants this raised to $800 (U.S.), in line with its own threshold. No surprise, online retailers such as eBay like the idea. But it could hurt Canadian companies.

Public contracts: The administration wants U.S. companies to be able to bid on government contracts in Canada and Mexico. At the same time, it's looking to maintain protectionist measures that would allow states to block Canadian companies from doing the same.

Other details: Loosening restrictions on U.S. access to the agriculture and telecommunications markets; reducing the U.S. trade deficit in goods; stricter "rules of origin" that could affect the auto industry.

The terms laid out by the U.S. aren't that dire, John Ibbitson writes (for subscribers). Instead, "The greatest threat [to Canada's economy] comes from a wounded Donald Trump, whose presidency is unravelling. Trump could attempt to unilaterally terminate NAFTA, to solidify support among his true believers as the crisis surrounding his presidency worsens. Fortunately, Congress will have the final say, which is one reason Prime Minister Justin Trudeau's entire government is working flat out to win support for NAFTA on the Hill and in state capitals. That support could be Canada's last, best defence should this rogue President attempt the nuclear trade option."

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The latest on B.C. wildfires

With more than 100 wildfires still raging, nearly 40,000 people have been forced from their homes in B.C. Many are sleeping at one of 11 emergency reception centres. One small silver lining is the support that has come in the form of donations and volunteers: The Kamloops centre has had to turn volunteers away, and nearly 1,000 people offered to walk dogs and hand out supplies. Access to parts of Banff National Park and Kootenay National Park have been closed off. Residents of Cache Creek, the first community ordered to evacuate, will be allowed to return home this afternoon. Meanwhile, the fires have prompted two mines to put some operations on hold.

Two more young people in Pikangikum have taken their own lives

Two more young people took their own lives in the Ontario First Nation community of Pikangikum over the weekend. The two girls were in their mid-teens. Just two weeks ago a pair of 12-year-olds, one boy and one girl, took their own lives. One of the girls who died this past weekend was a sister of the girl who died earlier this month.

There have already been at least 20 suicides this year in the Nishnawbe Aski Nation, which consists of 49 communities in Northwestern Ontario. The chief of Pikangikum said his community is "still very much in shock," with leaders struggling to find ways to address the crisis. Health Canada has sent in supports to the affected areas and is increasing the size of its mental-health teams that serve NAN reserves.

The Quebec referendum system behind the rejected Muslim cemetery

Despite a narrow referendum rejection of a proposed cemetery, Quebec City's Muslim community is vowing to keep fighting for a place to bury its dead. Because of Quebec's municipal processes, the fate of the project was left to the whims of a small group of citizens in the town of Saint-Apollinaire. On Sunday, the "No" side won out by a narrow count of 19-16. "It's insane. Three votes. We speak for thousands of Muslims in Quebec City," said Mohamed Kesri, the man who spearheaded the project.

Quebec's unique system of allowing referendums for land-use issues is "dysfunctional," according to the Union of Quebec Municipalities. And the "No" side typically benefits most, with NIMBYs – "not in my backyard" – getting out the vote to put a halt to projects, said one Montreal lawyer specializing in municipal law. The province recently passed legislation that allows municipalities to opt out of referendums if they consult citizens in other ways.

U.S. dollar falls as health-care bill falters

The U.S. dollar fell to its lowest level in 10 months overnight after efforts to replace Obamacare faltered with two Republican senators saying they wouldn't support its replacement. The move raised questions in the market about the ability of  U.S. President Donald Trump's administration to push through tax and spending plans. U.S. market futures were modestly positive around 5:30 a.m. In Europe, Britain's blue-chip FTSE 100 was up 0.14 per cent while Germany's DAX was off 0.45 per cent. France's CAC 40 index was off 0.16 per cent. In Asia, markets were mixed. Japan's Nikkei slipped 0.59 per cent. The Shanghai composite index was up 0.33 per cent and Hong Kong's Hang Seng was up 0.21 per cent. The Canadian dollar was trading at 79.22 cents (U.S.). Oil was trading slightly higher.

WHAT EVERYONE'S TALKING ABOUT

Beyond denial: Indigenous reconciliation requires recognition

"For government to simply say to Indigenous peoples 'let's reconcile' while demanding that rights are only relevant if proven in court, or may be recognized at the end of a protracted negotiation, is not a true starting point for reconciliation and impedes progress. Similarly, reconciliation cannot emerge without undoing colonial laws and legacies that are based on denial. For reconciliation to fully manifest itself in Canada, denial must be ended in all of its aspects, and recognition must become the foundation of relations. This is ultimately how the lives of Indigenous peoples will be improved." – Jody Wilson-Raybould, Minister of Justice and Attorney-General of Canada

Kathleen Wynne rises from the dead

"In Ontario, the Liberals have been in power so long that the youngest voters can't remember when they weren't. What saved them from defeat was a leadership change and a fresh face at the top. A lot of people think they'll need another one to win again. But Ms. Wynne is not a quitter. She's in full control of the party, and insiders say she has no intention of taking a long walk in the snow. The economy is strong. The unemployment rate is low. Voters' memories are short – or so she hopes – especially when the sun is shining. Can she pull it off? Don't rule it out." – Margaret Wente

HEALTH PRIMER

Not all prostate cancer cases need treatment right away

A prostate cancer diagnosis doesn't necessarily mean treatment is necessary immediately. A new study based on 20 years of data found death rates were similar for men who had surgery right away compared to those who were originally assigned to monitoring. And treatments can cause issues like impotence or infections. But in the end it's a case-by-case issue that's best discussed with a doctor.

MOMENT IN TIME

Indian Independence Act given royal assent

July 18, 1947: After two centuries of colonial rule, many of India's 345 million residents were agitating for independence. They'd protested for decades, with Mahatma Gandhi among the hundreds of non-violent resisters arrested. But tensions between the Hindu majority and Muslim minority were growing, too, and the British government was finding it increasingly difficult to govern. Early in 1947, the prime minister announced that the days of the British Raj would soon be over: The colony would be divided into the two self-governing states of India and Pakistan. The Indian Independence Act received royal assent on this day in July, and took effect the following month. But the clean division the British government imagined was instead coloured by violence. Hundreds of thousands were abducted, assaulted or killed. Hindus and Sikhs in Muslim-dominated Pakistan and Muslims in Hindu-dominated India fled across borders, sparking a major refugee crisis. – Dakshana Bascaramurty

Morning Update is written by Arik Ligeti.

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