Ontario names former GM executive David Paterson as new trade envoy to Washington

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The Ontario government has named a former senior executive at General Motors Canada as its new trade representative to the United States, as the province looks to position itself as the premier destination in North America for investment in the auto and electric vehicle battery sector.

David Paterson, who also served in senior roles at BlackBerry and Manulife Financial, began his three-year term on Nov. 23. The post was previously held by Premier Doug Ford’s former campaign adviser Ian Todd, who departed the position in Oct. 2021, and has sat unfilled since then.

Vic Fedeli, Minister of Economic Development, Job Creation and Trade, said the province took its time to find the right person for the position. Mr. Paterson will be paid $350,000 a year, similar to Mr. Todd, which Mr. Fedeli says is commensurate with his experience in the private sector.

“We wanted the best person and David’s business career is stellar. It is one for the record books. All of the dealings we’ve ever had with Dave have been really thoughtful, productive,” Mr. Fedeli told The Globe and Mail in an interview on Tuesday.

“He will be our man in Washington.”

The government also faced patronage accusations for previous government appointments during Mr. Ford’s first mandate. Mr. Fedeli added that this time, “it was never about the speed for us.”

Mr. Paterson, who expects to relocate to Washington in the new year, has experience in trade negotiations as well as transitioning the auto sector to green vehicles.

During his time at GM, Mr. Paterson helped with the 2020 renegotiation of the North American Free Trade Agreement, now called United States-Mexico-Canada Agreement (USMCA), or CUSMA by Canada. A review of the deal is set for 2026, which will occur during Mr. Paterson’s time in the job.

Canada is also dealing with the ramifications from the Biden administration’s Inflation Reduction Act, which features US$369-billion in green incentives for the EV industry.

Mr. Paterson calls the timing “an opportunity.”

“The world, if you step back, is going through some major changes with the EV adoption, climate change and all of that, with technology, and artificial intelligence. And these things play right into our economy,” he said in an interview.

“This is just an enormously important number of years ahead of us.”

He pointed to Canada’s ability to land a Volkswagen battery plant in St. Thomas, Ont., which will include up to $13.2-billion in production subsidies, as well as a new multi-million-dollar plant for EV battery materials in Loyalist, Ont., as important initiatives.

“We’re in the game of this major transformation, which is the biggest sector of North America. We’ve hit singles and doubles. Let’s hit home runs,” Mr. Paterson said.

He also said the province’s critical mineral supply is key to the automotive strategy in the United States. He called Ontario “world-competitive” in terms of the reserves and quality of nickel sources.

“If you don’t have the minerals, you’ve got to get them from somewhere, and primarily this has been done out of China,” Mr. Paterson said. “The greatest thing about the IRA is that we have the opportunity to do it in North America, and we’re inside the fence.”

Mr. Fedeli acknowledged some “challenges” with the U.S. incentives, but also said Ontario is viewed as a “sea of tranquility” worldwide. He noted Ontario has attracted $27-billion in new auto and EV battery investments in the past three years.

“If you want to come to North America, there really are some clear choices,” Mr. Fedeli said. “It’s not about the money. It’s really about the people.”

Mr. Paterson, who will be based out of Canada’s embassy to the United States in Washington, said he has key relationships in DC from his previous dealings on trade matters and in the business world. Ontario also has agents-general in Chicago and Dallas, and trade and investment offices in San Francisco and New York.

Mr. Paterson also has a history in Ontario politics – he worked as a staffer in the government of former Liberal premier David Peterson in the mid-1980s.

But he said he didn’t hesitate to be the envoy for a Progressive Conservative government.

“I’m from the Ontario party. I want us to be successful,” he said.