Korea oil deal -Supplied image
EDMONTON — Alberta Premier Danielle Smith has signed a joint statement with South Korea’s customs commissioner to eliminate a tariff on Alberta crude exports, a move the province says will strengthen access to Asian markets.
The agreement with Korea Customs Service Commissioner Myeong-ku Lee confirms diluted bitumen shipped from Canada qualifies as a Canadian-origin product, removing a three per cent tariff that had applied to shipments to South Korea.
The province says the change is expected to improve competitiveness for Alberta oil and support further export growth.
In 2025, Alberta exported nearly $400 million worth of crude oil to South Korea, a more than fivefold increase from the previous year, driven in part by expanded pipeline capacity.
Officials say exports could rise 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 in a statement.
Lee said the agreement reflects cooperation to address supply chain challenges while aligning with existing free trade rules.
The development comes as Alberta looks to expand its energy exports beyond North America and increase access to global markets.
South Korea is a key trading partner for the province, with bilateral trade totalling $1.8 billion in 2025. Alberta’s exports to the country include oil, coal, nickel, propane, beef, pork and wood pulp.
Industry officials have pointed to pipeline infrastructure, including access to the West Coast, as a key factor in connecting Canadian crude to Asian buyers.
The province says the agreement supports its broader goal of increasing oil production and expanding export capacity to meet international demand.
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