We reported last week that Canada’s export sector is “alive and kicking” despite U.S. tariffs.

Today, we take a look at how Alberta’s export sector has been performing within that bigger picture.

Overall, the news is positive with the dollar value of Alberta’s international merchandise exports up by 2.6% on a year-to-date (YTD) basis1 through May.2

If this rate of growth is maintained for the entire year, it would be a marked improvement over the 2.8% annual decline in export value posted in 2025.

It’s Alberta, so energy is king…

Turning to how specific product groups have been performing, energy3 has accounted for three-quarters of total sales so far this year, so let’s start with it.

Supported by strong prices, energy sales were up by about 2% YTD to $61 billion. While not the best performer in terms of percentage growth, the rise in energy sales accounted for over half of Alberta’s total YTD export growth.

But sulphur is having a moment

Sulphur (a by-product of Alberta’s oil and gas industry) sales were up by 225% YTD through May to $1.1 billion. The rise is due in part to higher prices linked to the reduction of shipping through the Strait of Hormuz along with reduced sulphur exports from Russia and strong demand.

Sulphur sales through May have already exceeded last year’s annual tally and were almost three times higher than the total for 2024. Prices are expected to remain elevated, so we should continue to see strong sulphur sales in the months ahead.

Feeding growth

Alberta’s agriculture and food manufacturing sector has also contributed to the rise in exports over the first five months of the year, growing by 4.0% to $7.7 billion.4 Strong performers included beef, peas, lentils, and canola seed.

Machinery such as fans, compressors, and air coolers was another area of growth over the first five months of the year, with exports from the “industrial machinery, equipment and parts” sector up by 22.3% to $2.1 billion.

As always, not all product groups are posting growth. Petrochemical sales, for example, have been slow out of the gate, down 39.6% YTD. Burdened by U.S. tariffs, wood exports were down by 27.3%, iron and steel by 14.0%, and aluminum by 10.4%.

Overall, we expect elevated commodity prices, increased oil and natural gas export capacity, and carryover supply from last year’s strong harvest to support export growth in the months ahead.
Planning ahead is key

Alberta has the highest exports-to-GDP ratio of any province, so its international sales are especially important to its economic success. Five months into the year, total sales are up, but much of this is due to favourable, but highly volatile, commodity prices. Alberta is the least exposed province to U.S. tariffs, but they remain a drag on key sectors.

These realities point to the ongoing importance of increasing export capacity and diversification via new transportation infrastructure, investment in manufacturing, pursuing non-U.S. customers, and growing service-sector exports. At the same time, with sales to the U.S. accounting for 80% of Alberta’s exports, maintaining access to the U.S. market remains a paramount concern.

1Because of the volatile nature of monthly trade data, we shy away from reporting month-over-month changes and prefer quarter-over-quarter or year-to-date comparisons.

2If you read last week’s Twenty-Four on the national export sector, you may be wondering why national YTD exports were up by 8.4% compared to 2.6% for Alberta. Alas, export statistics are estimated using two different methods. National statistics are typically reported on a seasonally-adjusted balance of payments basis whereas provincial statistics are reported on an unadjusted customs basis. Using the customs data, Canada’s exports grew by 2.2%.

3This product group includes crude oil and crude bitumen, natural gas, natural gas liquids and related products, coal, nuclear fuel (e.g., uranium), refined petroleum products (e.g., gasoline), and electricity. In Alberta’s case, crude oil and bitumen accounted for about 85% of this category over the first five months of 2026.

4Many commentators refer to exports of “farm, fishing and intermediate food products” as this is what Statistics Canada uses in its main series on provincial exports. This product group, however, should not be mistaken for a more comprehensive accounting of agriculture and agri-food exports as it does not include manufactured food and beverage products such as meat, dairy, and frozen vegetables. These are included in the “consumer goods” category.

Answer to the previous trivia question: Launched on July 10, 1962, the world’s first active communications satellite was called Telstar 1. Although no longer operational, Telstar 1 is still in orbit around the Earth.

Today’s trivia question: What is another name for sulphur?