The removal of tariffs on Australian wine entering the EU is good news for our exporters and for the long-term competitiveness of Australian wine in a major global market.
Australia's wine exporters have a new growth runway in Europe. The Australia-European Union free trade agreement, concluded on March 24, 2026 after negotiations that began in 2018, grants Australian wine zero tariff treatment on entry into force, with estimated annual tariff savings of AUD $14.5 million, according to Australian Grape & Wine (AGW).
The stakes are material. In 2025, 245 Australian exporters shipped 76 million litres of wine to the EU valued at $143 million, representing 12 percent of export volume and 6 percent of export value, Harpers reported. Tariff elimination removes a structural cost disadvantage against EU producers and competing New World suppliers with existing preferential access.
"The removal of tariffs on Australian wine entering the EU is good news for our exporters and for the long-term competitiveness of Australian wine in a major global market," said Lee McLean, CEO of Australian Grape & Wine.
Wine Australia CEO Dr Martin Cole said: "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 [AUD] 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." He added: "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."
Prosecco: the compromise
The agreement's most closely watched provision concerns Prosecco. Australia retains the right to use the name Prosecco on the domestic market, which AGW values at around $200 million per year. Export use of the name will be phased out within 10 years of the agreement's entry into force.
"The Government has successfully negotiated the retention of the name Prosecco for use in Australia's domestic market. That provides certainty for a domestic prosecco market worth in the order of $200 million per year," McLean said.
AGW's position remains that Prosecco is a grape variety, not a geographical indication. "We continue to maintain that Prosecco is a grape variety and that efforts to restrict its use are nothing more than protectionist measures used to distort trade to the advantage of EU producers," McLean said.
Beyond wine
The deal is broader than the wine chapter. Key provisions include:
- Protection of more than 1,600 EU wine geographical indications, plus 231 spirits GIs, in the Australian market
- Recognition of seven new Australian wine GIs, including the Upper Hunter Valley, Mount Gambier and New England
- Authorization of seven grape varieties, including Nero d'Avola, Carignan and Blaufrankisch
- Simplified certification requirements for EU imports
- Wine and spirits tariffs dropping to zero on both sides
- Transition periods: Australia adopts EU residual sugar limits for sparkling wine over five years; ouzo and tsipouro use phased out over seven years; grappa and genièvre arrangements grandfathered
What exporters should do now
Zero tariff treatment applies on entry into force, so Australian exporters should be reviewing EU pricing, distributor agreements and margin structures now rather than waiting for ratification to complete. The Prosecco transition clock, up to ten years for export use, gives producers time to build brand equity behind alternative naming, but the strategic direction is set. And with simplified certification alongside the tariff cut, the administrative friction of the EU market falls at the same time the cost friction does.
The combination of zero tariffs and simplified certification removes both the cost and administrative friction of the EU market at once.