Is it still the largest economy? By many numbers, it is not.
The United Kingdom used to be in a similar position and Ireland was like Canada. Nowadays, Ireland does not need to cave in to its neighbor's demands.
EDIT: Ireland very cleverly reduced corporate income taxes to lure in many multinational corporations. Kudos to them. I doubt Canada can replicate it. We have resources and resources are hard to move around. I hope we can get our economy to produce more added value products but so far that hasn't worked out.