Morning Update: U.S. playing hardball during second round of NAFTA talks

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U.S. goes hard on demands, soft on specifics in NAFTA talks

The Globe and Mail has learned that U.S. negotiators are taking a hard-line stance during the second round of NAFTA negotiations, insisting that Canada and Mexico will have to make concessions, while the Americans won't give up anything in return. Today is the last day of negotiations in Mexico City. On Saturday the U.S. demanded that Canada loosen restrictions on the supply management system for dairy and poultry products. So far, Canada's strategy has been to make large demands such as including climate change into the renegotiated deal and stronger labour laws while Mexico has been waiting for the U.S. to show its hand. The U.S., on the other hand, has been light on specifics in its demands. (for subscribers)

Justice system failed mentally ill Indigenous inmate, lawyer argues

Michael Nehass, a 33-year-old Indigenous inmate in Yukon, was charged with aggravated assault and other counts after an alleged assault at knife-point. A judge declared a mistrial in February of this year due to concerns about his mental fitness. Mr. Nehass swallowed razor blades in 2016 because he believed that an unspecified technological device had been implanted in his stomach during his six-year-long incarceration, much of which was spent in solitary confinement. His lawyer is arguing for a stay of the prosecution because the justice system failed to intervene while Mr. Nehass's mental state deteriorated during his imprisonment, a Yukon Supreme Court filing alleges.

Former ambassador questions Canadian arms sale to South Sudan

The former Canadian ambassador to South Sudan, Nicholas Coghlan, questioned the ethical implications of a Canadian company's sale of armoured vehicles to the African country's military, which in turn used them in a bloody civil war. Mr. Coghlan says he raised concerns with the federal government over South Sudan's purchase of 173 armoured vehicles from Streit Group, according to his newly published memoir.

Boeing rejects Ottawa's call to drop Bombardier trade complaint

Boeing is moving forward with a trade complaint against Bombardier despite the Canadian government's request for the U.S.-based aerospace giant to drop the dispute. Boeing International President Marc Allen said his company's priority is fighting back against what he sees as illegal subsidies for Quebec-based Bombardier.

Students to get opportunity to grade themselves in high-school experiment

As part of a pilot project, a group of Ontario high schoolers will be able to negotiate their final grades with their teachers in the upcoming school year. The experiment aims to challenge the deep focus on marks that students, teachers and parents have. The program, educators say, will see if the mark-negotiation process allows students to learn more effectively and be better prepared for life after high school.

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MORNING MARKETS

Global markets are mixed on Tuesday amid the escalating tensions on the Korean peninsula, with European stocks up and New York poised to open lower after the three-day weekend. Tokyo's Nikkei lost 0.6 per cent, Hong Kong's Hang Seng was little changed, and the Shanghai composite gained 0.1 per cent. In Europe, London's FTSE 100, Germany's DAX and the Paris CAC 40 were up by between 0.3 and 0.9 per cent by about 4:45 a.m. ET. New York futures were down, and the Canadian dollar was at 80.6 cents (U.S.). U.S. oil prices edged higher, while U.S. gasoline prices slumped to pre-Hurricane Harvey levels, as oil refineries and pipelines in the U.S. Gulf Coast slowly resumed activity, easing supply concerns.

WHAT EVERYONE'S TALKING ABOUT

Tax changes are about levelling the playing field

"While we know most businesses are investing and creating jobs, we also know that corporate structures are being used to reduce personal taxes. That leaves us with a challenge that is unsustainable. As more and more people set up corporations, there is a growing number of individuals who have access to tax advantages not available to other hard-working Canadians. This means that some of the highest-income earners are effectively being taxed at a much lower rate than everyone else. It is legal, but as a former business owner and high-income earner myself, I do not think it is right." – Finance Minister Bill Morneau

Mr. Trudeau's government declares class warfare

"[Bill Morneau's] new proposals for small-business tax reform – which will hit a wide range of professionals – are couched in the rhetoric of class warfare. He refers to law-abiding, tax-compliant people (not all of whom drive Lexuses) as 'the richest Canadians,' who exploit 'unfair tax advantages' and 'fancy accounting schemes.' In contrast with the middle class families that the Trudeau government is working day and night for, they don't pay their fair share.'" – Margaret Wente

Constantly proving my blackness is exhausting

"What does it feel like to occupy one body that is essentially your own, but as two separate people; a black woman writer and a writer? For one, it's extremely difficult to write while constantly bouncing back and forth like this. Walking into a literary reading to a full house where you are the only non-white face will always bring up questions: Am I the physical representation of a diversity hashtag? Is my writing good? Can I read to this particular room of people?" – Chelene Knight

HEALTH PRIMER

Noticing bodily sensations and paying attention to cravings may help curb drinking

A small experiment conducted in the U.K. is suggesting that heavy drinkers may be able to cut back on their drinking if they use mindfulness techniques and other mental exercises. The study wasn't a clinical trial but the co-author says that it does suggest that people who drink too much may be able to reduce their alcohol consumption through mindfulness training.

MOMENT IN TIME

Canadian National Exhibition launched

Sept. 5, 1879

Canada's largest fall fair – known simply as "the Ex" – opened 138 years ago, drawing large crowds to see the latest in farm technology. The CNE quickly diversified, becoming an end-of-summer staple catering to all manner of tastes. Architectural gems such as the glass and steel Crystal Palace (which burned down in 1906), gave way to the zany sport of auto polo (American-made, dangerous as it sounds), a tacky midway and death-defying stunts. It was a staging area for troops during both World Wars and, in 1953, revealed the world's fastest roller coaster, the Flyer. Nothing is ever too "out there" for the Ex; this year food stalls sell Strawberry Shortsteak (steak and provolone topped with whipping cream, icing sugar and strawberry sauce in a doughnut bun) and Spaghetti Doughnut Balls – both sweet and savoury. Imagination: It's what the Ex has always been about. – Gayle MacDonald

Morning Update is written by Mayaz Alam. If you'd like to receive this newsletter by e-mail every weekday morning, go here to sign up. If you have any feedback, send us a note.