Australia has concluded negotiations on the proposed new Australia – European Union Wine Agreement (Wine Agreement). The outcomes negotiated under the Wine Agreement complement the elimination of tariffs achieved under the Australia – EU Free Trade Agreement (A-EU FTA).
Negotiation outcomes
The European Union (EU) has agreed the following:
- Simplified certification requirements for Australian wine exporters to the EU, including:
- reduction in analyte testing requirements (3 to 1 for bottled and 7 to 3 for bulk) providing savings of approximately $45 to $145 each time an exporter sends a consignment of wine to the EU, and
- flexibility to self-certify and submit certification electronically, and
- Most favoured nation treatment for export certification.
- Seven Australian Geographical Indications (GIs) to be protected in the EU: New England, Pokolbin, Upper Hunter Valley, Mount Gambier, Robe, Wrattonbully, Australia.
- Seven new grape variety names for Australian use in the EU: Alicante Bouschet, Alicante Henri Bouschet, Carignan, Carignane, Nero d’Avola, Blaufrankisch, Friulano.
- Agreement that Australian wine exporters can use all existing grape variety names indefinitely, even if they become an EU GI in the future.
- Authorisation for use of dimethylpolysiloxane in production of wine exported to the EU.
- Reduction of the lower alcohol limit to 7 per cent.
Australia has agreed the following:
- To adopt the EU’s residual sugar limits for sparkling wines, to be phased in over five years from entry into force.
- Protection of 50 new and amendment of 113 existing EU GIs which will recognise additional GIs registered since the previous Wine Agreement came into force.
- Protection of 96 new traditional terms and amendment of 264 existing traditional terms.
Prosecco
Prosecco was negotiated in the A-EUFTA and will be implemented in the Wine Agreement.
Australia is continuing to recognise and use Prosecco as the name of a grape variety in Australia. Australia will also protect the EU GI, Prosecco.
The outcome on Prosecco reflects the balance of interests between Australia and the EU across the FTA and Wine Agreement, without compromising on the fact that Prosecco is a grape variety in Australia.
Australia agreed to new Prosecco labelling requirements when Prosecco is used as the name of a grape variety:
- The grape variety Prosecco must be in the same field of vision on the bottle as the Australian GI (e.g. King Valley Prosecco) and brand name.
- These requirements will come into effect 2 years from entry into force of the Wine Agreement.
- Prosecco winemakers in Australia will also need to respect its protection as a GI and not use it in a way that misleads as to the country, region or locality in which the wine originated.
Australia agreed to prevent the export of wine labelled as Prosecco 10 years from entry into force of the Wine Agreement.
Exports of wine labelled ‘Prosecco’ to our major Prosecco export market, New Zealand, will be prohibited by New Zealand on 1 May 2029, 5 years after the NZ-EU FTA entered into force and well before export restrictions on Australian Prosecco enter into force.
Entry into force
In accordance with Australia’s treaty-making process, the negotiated Wine Agreement will be considered by the Governor General and the Federal Executive Council. Entry into force is subject to scrutiny by Parliament and will take place alongside the A-EUFTA.
The EU is one of Australia’s largest wine export destinations. Australia exported $2.4 billion worth of wine in 2025, with $159.3 million going to the EU. Australia’s trade in wine to the EU is underpinned by favourable market access conditions achieved under the Wine Agreement.