Alberta inks deal with South Korea to waive crude export tariffs

Alberta inks deal with South Korea to waive crude tariffs

Canada

EDMONTON, April 22, 2026 – Alberta Premier Danielle Smith and South Korea’s Customs Commissioner Myeong-ku Lee have signed an agreement to waive a 3% tariff on crude exports from Alberta to South Korea, the Government of Alberta announced on Tuesday.

Alberta exported crude oil to South Korea for around USD 293 million in 2025, a year-on-year increase of more than 500% due primarily to improved pipeline infrastructure. The province estimates that, with tariffs removed, exports could grow up to USD 732 million per year, depending on refinery demand.

The Trans Mountain pipeline is a key connection between Canadian oil producers and ports. In 2025, more than 65% of Canada’s oil volumes were shipped to Asia from Westridge Marine Terminal in British Columbia, according to Mark Maki, CEO of Trans Mountain.

The deal considers diluted bitumen shipped from Canada as a Canadian-origin product, also exempting it from tariffs and strengthening export potential for Canadian producers.

“Zero tariffs on Alberta crude destined for South Korea makes Alberta energy more competitive, and strengthens a partnership built on reliability and trust. It creates more opportunities for Alberta producers, supports investment in our economy and secures long-term demand for our energy,” said Smith.

Offtakers of Alberta crude in South Korea include refineries such as SK, HD Hyundai Oilbank and GS Caltex. Alberta’s total exports to South Korea totalled around USD 1 billion in 2025, consisting primarily of oil, coal, nickel, propane, beef, pork and wood pulp.

Photo of Westridge Marine Terminal courtesy of Trans Mountain