After eight years of discussions, a free trade agreement between the EU and Australia has now been signed. The ratification process remains, but as soon as the agreement enters into force, Australia will be opened to EU wines and the EU to Australian wines without import duties. This will be positive for the European Union’s wine sector, says Marzia Varvaglione, President of the Comité Européen des Entreprises du Vin (CEEV).
This opening of the Australian market is good news, not least for French wines. Australia is France’s thirteenth-largest export market in terms of volume (190,000 hl in 2025, +9% compared to 2024) and its fifteenth-largest market in terms of value (225 million euros, +20%). These positive figures are encouraging, given that French wine exports to countries such as China and the United States are declining, not least because of increasing protectionist trade barriers there.
Europe already plays a significant role in Australia’s wine exports. According to figures from Australian Grape and Wine, Europe is Australia’s largest export market by volume. Among non-EU countries, Chile and South Africa (which already have free trade agreements with the EU) currently export the most wine to EU countries. Australia is in third place. The new trade agreement also means regulatory simplifications for wine producers who export, which is not least important.
The free trade agreement will also include protection for many geographical indications. The issue of the use of prosecco has been hotly debated. In Australia, prosecco is still used as a grape name, while the EU protects Prosecco as a geographical indication. According to the agreement, Australian producers can continue to use prosecco as a grape variety name on the domestic market. However, exports labelled as Australian Prosecco will be phased out over ten years.
So, one more win for free trade and an open world at a time when some countries are instead putting up destructive protectionist trade barriers. Read more: thedrinksbusiness.
We also recently wrote about the EU’s new trade deal with India. These follow quickly on the hells of the EU’s comprehensive trade deal with Mercosur (in South America) in January. A more open world is a freer and more prosperous world!
