Australia–European Union agreements to bring changes for Australian wine

Australian wine exporters and domestic-focused wine producers are set to see changes through the conclusion of negotiations on the Australia–EU Free Trade Agreement (A–EU FTA) and a new Australia–European Union Wine Agreement (Wine Agreement).

Through the A–EU FTA import tariffs on Australian wine exports to the EU will immediately reduce to zero on entry into force, improving the sector’s competitiveness in the markets. The A–EU FTA negotiations have also provided a resolution for Prosecco. Australian wine producers will retain the right to continue to use Prosecco as the name of a winegrape variety within Australia’s domestic market. For exports, Australia will protect Prosecco as an EU geographical indication (GI), phasing out the use on labelling over 10 years from the date the agreement enters into force. 

The outcomes for Prosecco will be implemented through a proposed new Wine Agreement that builds on the 1994 and 2009 agreements between Australia and the EU.

Through the Wine Agreement, Australian wine exporters will see additional benefits. Importantly, the new agreement includes protections for Australian wine exporters that will allow all other existing grape variety names to be used indefinitely, even if they become an EU GI in the future. 

Australian wine exporters will also see access to simplified certification requirements, reduced analyte testing requirements, ‘most favoured nation’ treatment for export certification, and protection for seven additional Australian GIs and seven grape variety names. 

Wine Australia CEO Dr Martin Cole said Wine Australia will provide comprehensive guidance to producers and exporters through the transition of changes from the agreements.

“Europe is a significant region for Australian wine exporters. In 2025, 245 Australian wine exporters shipped 76 million litres of wine valued at $143 million to EU member markets, representing 12 per cent of total export volume and 6 per cent of export value, with additional wine sent to the United Kingdom and then on-shipped to EU destinations,” Dr Cole said.

“The Wine Agreements between Australia and the EU in the past have helped to reduce barriers for Australian wine exporters, helping to give a competitive advantage in the region and have meant that fewer changes to labelling and winemaking practices are needed in order to sell their wine in the EU.”

Further information about the Australia–EU Free Trade Agreement (A–EU FTA) can be found at the Department of Foreign Affairs and Trade website and the Australia–European Union Wine Agreement on the Department of Agriculture, Fisheries and Forestry website.

Fast facts

• The seven additional Australian GIs that will be protected in the EU through the Wine Agreement are: New England, Pokolbin, Upper Hunter Valley, Mount Gambier, Robe, Wrattonbully and Australia.
• The seven new grape variety names that Australian wine exporters can use in the EU through the Wine Agreement are: Alicante Bouschet, Alicante Henri Bouschet, Carignan, Carignane, Nero d’Avola, Blaufrankisch and Friulano.
• In 2024, the EU consumed 1.2 billion 9L cases of wine – about half of worldwide wine consumption. However, most of the wine consumed (more than 90 per cent) is produced in the EU – mainly in Italy, France, Spain, and Germany. (IWSR)
• Key markets of growth for Australian wine exports in 2025 were Denmark (up 1 per cent in value to $28 million) and the Netherlands (up 7 per cent in value to $21 million). (Wine Australia). 
• The volume of wine imports into the EU from non-EU sources declined by 6 per cent in the 12 months ended September 2025. Chile and South Africa are the top non-EU sources of wine, with Australia sitting third. (Trade Data Monitor). Chile and South Africa both have zero import tariffs on wine to the EU. 
• All wine consumed in the EU has declined by 3 per cent in volume per year over the past five years, while value has increased by 1 per cent per year over the same period. The value of wine consumption is forecasted to be flat over the next five years. (IWSR)
• The top markets for Australian wine consumption by value are Denmark, Ireland, Germany, the Netherlands, and Sweden. Over the past five years, Denmark and Ireland recorded the most growth. (IWSR).
• The EU bloc of countries have a 14 per cent share of global GDP (International Monetary Fund).