Negotiations for a free trade agreement between the European Union and Australia concluded on March 24 in Brussels, marking a pivotal moment for the wine sector in both regions.
The deal promises to reshape trade flows and strengthen regulatory cooperation, particularly benefiting wine producers and exporters.
The European Committee of Wine Companies (CEEV), representing EU wine interests, welcomed the agreement. Marzia Varvaglione, CEEV President, highlighted that the deal comes at a critical time, with rising production costs and geopolitical uncertainties impacting the sector. She noted that the agreement offers a valuable opportunity to diversify markets and reinforce the global presence of EU wines. While officials are still reviewing the full text, the initial assessment is highly positive.
Currently, Australia ranks as the 11th largest market for European wines. EU wine exports to Australia totaled €304 million in 2024/2025, slightly up from €300 million the previous year. Sparkling wines represent nearly half of this trade, reflecting strong consumer demand for European sparkling varieties. Conversely, Australian wine exports to the EU fell from €171 million to €155 million over the same period.
A major immediate benefit of the agreement is the removal of the 5% import tariff on EU wines entering Australia, enhancing the competitiveness of European wines. The deal also modernizes bilateral rules on winemaking practices, facilitating recognition of international standards and improving regulatory alignment.
Protection of geographical indications (GIs) was a key focus during negotiations. Ignacio Sánchez Recarte, CEEV Secretary General, explained that the agreement addresses sensitive labeling issues, including phasing out the use of “Prosecco” for Australian exports while clarifying domestic labeling rules to prevent consumer confusion.
CEEV praised the European Commission for achieving this milestone and urged rapid ratification to allow the agreement to enter into force swiftly. Representing over 90% of EU wine exports, CEEV connects national associations and leading wine companies across 13 member states, Switzerland, the UK, and Ukraine.
By lowering tariffs and enhancing regulatory cooperation, the new trade framework is expected to support small and medium-sized wine enterprises and foster stronger trade relations between Europe and Australia, paving the way for increased export volumes and long-term commercial growth.
Source: Vinetur
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