Despite Canada’s threats to walk away from NAFTA talks if necessary, its limited success in diversifying exports leaves the nation too reliant on U.S. markets to play hardball, government insiders and trade experts say.
Negotiators from Canada, Mexico and the United States will gather in Ottawa on Saturday for the third round of talks on modernizing the North American Free Trade Agreement with many tough items yet to be broached.
U.S. President Donald Trump says he will ditch the pact unless major changes in are made. Canada last month suggested it could walk away if the United States pushed to remove a key dispute-settlement mechanism.
But insiders say leaving the table remains very much a last-ditch measure for the government of Liberal Prime Minister Justin Trudeau.