Alberta has struck a deal to eliminate tariffs on crude oil exports to South Korea, a move the provincial government says will expand access to Asian markets and drive billions in additional energy sales.Premier Danielle Smith signed a joint statement with Myeong-ku Lee of the Korea Customs Service confirming that diluted bitumen shipped from Canada will qualify as a Canadian-origin product, removing a 3% tariff that had applied to Alberta crude.The agreement is expected to make Alberta oil more competitive in the South Korean market and strengthen trade ties with one of the province’s key Asian partners.In 2025, Alberta exported nearly $400 million worth of crude oil to South Korea, a surge of more than 500% year over year following expanded pipeline capacity. With the tariff removed, officials say exports could climb to between $400 million and $1 billion annually, depending on refinery demand..“Zero tariffs on Alberta crude destined for Korea makes Alberta energy more competitive, and strengthens a partnership built on reliability and trust,” Smith said. “It creates more opportunities for Alberta producers, supports spending in our economy and secures long-term demand for our energy.”South Korean officials framed the agreement as part of a broader effort to diversify energy supply chains.“This joint statement acknowledges the structural challenges in the field and identifies bold and proactive solutions through direct cooperation with the Alberta government,” Lee said, calling the deal a significant step in addressing national energy security concerns.Industry leaders also pointed to the role of pipeline infrastructure in enabling the export growth. Trans Mountain Corporation CEO Mark Maki said the system provides a direct route for Canadian crude to Asian markets, noting that more than 65% of export volumes in 2025 were shipped to Asia from British Columbia.The Republic of Korea remains a major trading partner for Alberta, with total bilateral trade reaching $1.8 billion in 2025. Alberta exports to the country totalled $1.4 billion, including oil, coal, nickel, propane, beef, pork and wood pulp.Several major South Korean energy firms, including Korea Gas Corporation and Korea National Oil Corp, maintain Canadian headquarters in Calgary, underscoring the growing economic ties between the two jurisdictions.
