The ability of Canada to send more oil to Asia has been proven by the successful startup of the Trans Mountain pipeline — and it could continue to grow with the removal of trade barriers this week.

The Alberta government is highlighting the issue, announcing two new deals involving South Korea.

The first, unveiled Monday, saw the Republic of Korea’s customs commissioner ink a joint statement, waiving a three per cent tariff on Canadian oil that’s exported to the country of 52 million.

On Tuesday, the province announced it’s signed a memorandum of understanding with Seoul-based Hanwha Group, creating a framework for future potential investments by the conglomerate in several economic sectors, including energy, manufacturing and defence.

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The energy accord confirms that diluted bitumen from Alberta qualifies as a product that originates in Canada and shouldn’t be subject to an import levy under an existing free-trade agreement between the two countries. Most oil shipments face the tariff.

While the free-trade deal between Canada and South Korea came into force in 2015, a technical issue affected Alberta bitumen diluted with condensate sourced from the United States, noted Robert Johnston, director of energy and natural resources policy at the University of Calgary’s School of Public Policy.

The new waiver removes that fee and should increase the potential for more Alberta oil to head to refineries in South Korea.

“If you have a $3 swing on a $100-a-barrel (oil), it could be quite........

© Calgary Herald