Australian Winemakers Toast Historic Victory in EU Trade Negotiations
Australian winemakers are raising their glasses in celebration following a significant breakthrough in protracted negotiations with the European Union. A long-awaited trade agreement has secured the right for Australian producers to continue using the term "prosecco" for wines sold domestically, overcoming persistent efforts by European counterparts to restrict the name's usage.
Decades of Uncertainty Finally Resolved
Katherine Brown, winemaker and brand ambassador for Brown Brothers, expressed profound relief at the development. "Oh, we've been celebrating," she confirmed. "It's really fantastic news for prosecco producers but also prosecco consumers because it really solidifies the future for us."
The resolution comes after Australian winemakers faced years of limbo, particularly since 2023 when Free Trade Agreement negotiators announced they couldn't reach consensus. "Prior to that, for more than a decade, the Italians have essentially been coming at us and essentially saying that we can't use the word, or use the grape variety, prosecco," Brown explained.
The Complex History of Prosecco Protection
Australian producers have been cultivating and making prosecco since the late 1990s, with early records showing the grapes growing in Victoria's King Valley region, home to Brown Brothers. However, in 2009, Italy enacted legislation redesignating a specific area as "Prosecco" and renaming the grape variety to "glera." This maneuver enabled the European Union to classify prosecco as a protected Geographical Indication.
Geographical Indications function as intellectual property safeguards that identify products originating from particular regions, similar to how champagne must come from France's Champagne district. "They said that the grape variety is no longer called prosecco, the region is called Prosecco," Brown noted. "Meanwhile, we're over here in Australia, we're making prosecco from what we have purchased called prosecco grapes."
A $200 Million Industry Preserved
Australian winemakers steadfastly resisted these restrictions, though they confronted substantial uncertainty. "It's a growing category. It's a $200 million industry here in Australia," Brown emphasized. "We just really wanted that certainty so our grape growers could go out and plant more prosecco grapes, so our consumers can understand what they're picking up on shelf."
The breakthrough was formally announced by Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen, confirming that Australian winemakers retain the right to produce and sell prosecco within Australia. The agreement also eliminates most Australian tariffs on EU imports, potentially reducing prices for European spirits, biscuits, chocolates, and pasta in Australian markets.
Export Market Compromises and Future Strategies
However, the deal includes compromises for export markets. Australian producers must phase out using the term prosecco in international markets over a ten-year period. Other protected names like feta, romano, and gruyere will similarly be phased out.
"It sounds very dramatic but essentially the major export nations for Australia for wine have their own FTAs with Europe," Brown clarified. "New Zealand is one of our largest export markets for prosecco, and they've already signed an FTA which phases out prosecco in 2029, so we've already been working towards elements and strategies of how we're dealing with that."
Brown concluded optimistically: "There's been a lot of time, money and effort going into ensuring that we keep the prosecco name so essentially we can celebrate, relax and focus on making great wine now. It's a great relief. It's going to be fantastic for the industry." Australian winemakers now plan to collaborate across the industry to develop new marketing approaches for their product in export markets where the prosecco name will eventually be retired.
