IN BREVE
- The trade agreement between Australia and the European Union modifies the use of the name Prosecco, allowing it only within Australia and not for export.
- Australia must recognize Prosecco as an EU Geographical Indication, phasing out its use on export labels within 10 years.
- The agreement offers commercial advantages to Australian producers, such as the immediate removal of tariffs on wines exported to the EU and technical simplifications for exporting.
- Seven new Australian Geographical Indications and new grape variety names are recognized in the EU, improving opportunities for exporters.
- The deal marks a significant step in safeguarding European Geographical Indications and balancing the international wine market.
The trade agreement between Australia and the European Union significantly shifts the balance of the international wine trade, with direct effects on one of Italy’s most sensitive issues: the name Prosecco, which Australia will use only domestically and no longer abroad. This is the central point emerging from the conclusion of negotiations between the two economic areas, which include both the Free Trade Agreement (A–EU FTA) and a new specific agreement on wine.
On one hand, the deal introduces commercial advantages for Australian producers, but on the other, it establishes a significant compromise regarding the Prosecco denomination, which has been a source of tension between Europe and Australia for years.
PROSECCO: USE ALLOWED ONLY IN THE AUSTRALIAN DOMESTIC MARKET
The main issue concerns the recognition of Prosecco as a European Geographical Indication. The agreement stipulates that Australian producers can continue to use the term “Prosecco” exclusively for the domestic market, maintaining it as a grape variety name.
For exports, however, the situation changes radically: Australia commits to recognizing Prosecco as an EU GI and to progressively eliminating the use of the name on labels within a transition period of 10 years from the agreement’s entry into force.
This is a key step for the international protection of the Italian denomination, which in recent years had seen an increase in Australian production of wines labeled as Prosecco, particularly in the State of Victoria.
A COMPROMISE ENDING A DECADE-LONG CONFLICT
The solution reached represents a compromise between the two positions. On one side, the European Union gains full recognition of Prosecco as a Geographical Indication in international markets. On the other, Australia retains the ability to continue using the name in its own domestic market, avoiding immediate impacts on local production.
The issue had become central to trade negotiations, partly due to the economic and symbolic value of Prosecco, which is now among the most exported denominations in the world.
ZERO TARIFFS AND INCREASED COMPETITIVENESS FOR AUSTRALIAN WINES
Alongside the Prosecco issue, the agreement provides for the immediate removal of tariffs on Australian wines exported to the European Union. This measure improves the competitiveness of Australian producers in a complex and highly competitive market.
In 2025, 245 Australian exporters shipped 76 million liters of wine to the EU, valued at 143 million Australian dollars, accounting for 12% of total exported volumes and 6% of the value.
“Europe is a significant region for Australian wine exporters,” said Wine Australia CEO Martin Cole. “Wine agreements between Australia and the EU have historically helped reduce trade barriers, providing a competitive advantage in the region.”
NEW RULES: LABELS, CERTIFICATIONS, AND PROTECTED NAMES
The new Wine Agreement also introduces a series of technical simplifications for Australian exporters, including reduced certification requirements and fewer required laboratory analyses. Furthermore, it includes “most favored nation” treatment for certifications and protection for new Geographical Indications and grape variety names.
A significant point concerns the guarantee that all other grape variety names already used by Australians—not coincidentally the subject of a masterclass at Wine Paris 2026—can continue to be used without time limits. This applies even if they become European Geographical Indications in the future.
NEW GEOGRAPHICAL INDICATIONS AND RECOGNIZED VARIETIES
The agreement also protects seven new Australian Geographical Indications in the European Union: New England, Pokolbin, Upper Hunter Valley, Mount Gambier, Robe, Wrattonbully, and Australia.
At the same time, seven new grape variety names are recognized for use by Australian exporters in the EU market: Alicante Bouschet, Alicante Henri Bouschet, Carignan, Carignane, Nero d’Avola, Blaufrankisch, and Friulano.
A MATURE AND INCREASINGLY SELECTIVE EUROPEAN MARKET
The agreement is set within the context of a mature European market. In 2024, the European Union consumed approximately 10.8 billion liters, accounting for about half of global consumption. Over 90% of the wine consumed is produced internally, primarily in Italy, France, Spain, and Germany.
Over the last five years, consumed volumes have decreased by 3% annually, while value has grown by 1% per year. Forecasts indicate value stability in the coming years. Imports from non-EU countries are declining (-6% in the 12 months to September 2025), with Chile and South Africa as the main suppliers, followed by Australia. Both competitors already benefit from zero tariffs, a factor that made this agreement strategic for Canberra.
IMPACT ON THE PROSECCO SYSTEM AND GLOBAL BALANCE
For the Italian Prosecco system, the agreement represents a significant achievement in terms of international protection. The progressive elimination of the name in Australian export markets reinforces the principle of protecting European Geographical Indications. At the same time, the issue of coexistence with the Australian domestic use of the term remains open, which could continue to cause confusion globally.
The deal between Australia and the European Union thus marks an important shift in the balance of the wine trade, with effects set to impact both producer strategies and the definition of rights linked to geographical names in the medium term.
