European Union and Australia Finalize Free Trade Deal Impacting Wine Industry

Negotiations for a free trade agreement between the European Union and Australia concluded today in Brussels, marking a significant development for the wine industry on both sides. The agreement, signed on March 24, is expected to have a direct impact on trade flows and regulatory cooperation, particularly for wine producers and exporters.

The European Committee of Wine Companies (CEEV), which represents the interests of EU wine businesses, welcomed the outcome. Marzia Varvaglione, President of CEEV, stated that the agreement comes at a time when geopolitical tensions and rising costs are challenging the sector. She emphasized that the deal offers a real opportunity to diversify export markets and strengthen the global position of EU wine companies. While CEEV officials noted that they still need to review the final text in detail, they described the result as positive for the EU wine sector.

Australia is currently the 11th largest export market for EU wines. In the 2024/2025 marketing year, EU wine exports to Australia reached €304 million, up from €300 million in 2023/2024. Sparkling wines make up about half of this trade, reflecting strong demand among Australian consumers for European sparkling varieties. In contrast, Australian wine exports to the EU totaled €155 million in 2024/2025, down from €171 million in the previous year.

One of the most immediate changes brought by the agreement is the elimination of the 5% import tariff on EU wines entering Australia. This measure is expected to make European wines more competitive in the Australian market. The agreement also updates existing bilateral arrangements on winemaking practices, aiming to simplify recognition of international standards and improve regulatory cooperation.

A key issue during negotiations was the protection of geographical indications (GIs) for wines. Ignacio Sánchez Recarte, Secretary General of CEEV, highlighted that GI protection was one of the most sensitive topics discussed. The agreement includes provisions for phasing out the use of “Prosecco” as a term for Australian exports and introduces clearer labeling rules to prevent consumer confusion when Australian producers use “Prosecco” domestically as a varietal name.

CEEV congratulated the European Commission for reaching this milestone and called on EU institutions to move quickly toward ratification so that the agreement can enter into force without delay. The organization represents over 90% of EU wine exports through its network of national associations and companies across 13 EU member states, as well as Switzerland, the UK, Ukraine, and several leading European wine firms.

The new trade framework is expected to support small and medium-sized enterprises in both regions by reducing barriers and providing greater legal certainty for exporters. With tariffs removed and regulatory cooperation enhanced, industry leaders anticipate increased trade volumes and stronger commercial ties between Europe and Australia in the coming years.