A landmark free trade agreement between the European Union and Australia was signed on March 24 in Brussels, signaling a major development for wine producers and exporters in both regions.
The deal is set to enhance market access, simplify regulatory compliance, and increase trade flows.
CEEV (European Committee of Wine Companies) hailed the agreement as a positive outcome amid challenges posed by rising costs and geopolitical tensions. President Marzia Varvaglione emphasized that the deal allows EU wine producers to diversify markets and secure a stronger global position. While the organization is still analyzing the detailed provisions, its initial reaction is optimistic.
Australia currently ranks as the EU’s 11th largest export market. EU wine shipments to Australia reached €304 million in 2024/2025, up from €300 million the previous year, with sparkling wines accounting for nearly 50% of exports. On the other hand, Australian wine exports to the EU declined from €171 million to €155 million.
The agreement immediately eliminates the 5% import tariff on EU wines entering Australia, making European products more price-competitive. Additionally, it modernizes bilateral arrangements on winemaking practices, streamlining the recognition of international standards and regulatory cooperation.
A sensitive aspect of the talks was the protection of geographical indications (GIs). Ignacio Sánchez Recarte, Secretary General of CEEV, noted that the agreement clarifies the use of terms like “Prosecco,” phasing out its application in Australian exports and ensuring consistent labeling for domestic production.
CEEV commended the European Commission and called for swift ratification, ensuring the agreement’s rapid implementation. Representing over 90% of EU wine exports, CEEV connects a broad network of associations and companies across Europe and beyond.
The new trade framework is expected to benefit small and medium-sized enterprises in both regions, promoting legal certainty, enhancing market access, and boosting trade volumes. Industry experts anticipate that the agreement will strengthen commercial ties between Europe and Australia for years to come.
Source: VinoVistara