Alberta has cleared a major hurdle in its push to supply Asian energy markets, signing a new agreement with South Korea to eliminate a three per cent tariff on the province’s crude oil exports.
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The joint statement, signed Monday, April 20, by Premier Danielle Smith and Republic of Korea Customs Commissioner Myeong-ku Lee, officially classifies Alberta’s diluted bitumen as a Canadian-origin product.
The move resolves a technical trade barrier that previously prevented Alberta crude from fully benefiting from the Canada-Korea Free Trade Agreement.
“Zero tariffs on Alberta crude destined for Korea makes Alberta energy more competitive and strengthens a partnership built on reliability and trust,” Smith said in a news release.
The deal follows a massive surge in trade between the two regions.
In 2025, Alberta’s crude exports to South Korea jumped by more than 500 per cent to nearly $400 million. Government officials estimate that with the tariff removed, annual exports could now grow to as much as $1 billion, depending on refinery demand.
The growth is largely attributed to increased pipeline capacity. Mark Maki, CEO of Trans Mountain, noted that more than 65 per cent of the pipeline’s exported volumes were delivered to Asia via the Westridge dock in British Columbia last year.
For South Korea, the agreement offers a way to diversify its energy supply chain. Customs Commissioner Myeong-ku Lee described the move as a “proactive solution” to national energy challenges.
South Korea is currently Alberta’s fourth-largest trading partner, with bilateral trade reaching $1.8 billion in 2025. Major Korean refiners, including SK and HD Hyundai Oilbank, are already consistent buyers of Alberta crude.
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