Aussie Prosecco exports to the EU ‘to be phased out’

Australian winemakers will be able to keep using the name ‘Prosecco’ for domestic wine sales following Prime Minister Anthony Albanese’s signing of the long-awaited Free Trade Agreement with the European Union today.

However, Australian Prosecco exports to the EU will be phased out over the next 10 years.

“The Trade Agreement will result in 98 percent of the current value of Australia’s exports entering the European Union duty free,” Albanese said.

“This deal creates major new opportunities for Australian exporters in the European Union’s massive $30 trillion economy, and will reduce costs for Australian consumers.”

Chief executive of Australian Grape & Wine, Lee McLean, said the tariff outcome was a “commercially meaningful result” for the sector.

“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,” he said.

“Europe remains Australia’s largest export region by volume.

“In 2025 alone, 245 Australian wine exporters shipped 76 million litres of wine valued at $143 million to EU member markets.

“Under the agreement, Australian wine exported to the European Union will receive zero tariff treatment upon entry into force, delivering an estimated $14.5 million per year in tariff savings.”

McLean said he would be engaging with Government on what assistance may be required to support export-focused Prosecco producers as they adapt.

“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,” he said.

“This is clearly a blow for those Australian producers who currently export Australian Prosecco, who will need to transition away from using that term for export markets.

“Encouragingly, we understand the agreement helps safeguard Australian producers’ ability to use established grape variety names, including those that may face future GI claims – avoiding a repeat of the prolonged uncertainty experienced by Prosecco producers.”

Europe had threatened to stop Australian winemakers using ‘Prosecco’ which is named after the village of Prosecco near Trieste in Italy.

In 2009 the European Union – at the behest of Italian winemakers – initiated actions to prohibit the name Prosecco being used by any region outside the geographical area of Prosecco.

The Prosecco industry in Australia is worth more than $200 million a year.

European Commission president Ursula von der Leyen addressed Parliament House in Canberra today as part of the FTA.

In November 2023 Australian Grape & Wine commended the “resolve” of Federal Trade Minister Don Farrell for walking away from negotiations on a Free Trade Agreement with the European Union over the Prosecco issue.

Otto Dal Zotto planted Australia’s first Prosecco vineyard – in the King Valley – in 1999.

Five years later Dal Zotto released the first home-grown Prosecco.

The EU and Australia already trade more than 87.5 billion – or well over $100 billion – worth of goods and services each year.

The FTA – which will be phased in when Australia and the EU have completed their domestic processes – opens up 450 million consumers to Australian products and services.

Otto was named Victorian Legend of the Vine at the 2025 Melbourne Royal Wine Awards.

Photo: Dal Zotto Facebook page.