According to The Drinks Business, the long-awaited trade agreement between Australia and the European Union is poised to significantly alter the dynamics of Australian wine exports. The elimination of import tariffs and accompanying regulatory adjustments are expected to bolster the competitiveness of Australian wines in one of the globe’s largest wine markets.
Industry experts note that this agreement comes at a crucial time when producers are actively seeking stable and lucrative markets amid a backdrop of global oversupply and fluctuating trade conditions. After eight years of negotiations, the free trade pact is set to remove import tariffs on Australian wine entering EU markets once it is enacted. Previous discussions had stalled in 2023 over agricultural quotas, including a contentious request from Canberra for a low tariff quota on over 40,000 tonnes of beef annually.
The renewed agreement emerges against a backdrop of broader trade disruptions, particularly with tariffs imposed by the United States, which has spurred both parties to finalize a deal. The removal of EU import duties on Australian wine is viewed as a significant commercial advantage for the sector.
Lee McLean, chief executive of Australian Grape and Wine, emphasized the positive implications of this tariff removal for exporters. “The removal of tariffs on Australian wine entering the EU is excellent news for our exporters and for the long-term competitiveness of Australian wine in a major global market,” he stated.
According to Australian Grape and Wine, this tariff change is projected to yield approximately AUD $14.5 million in annual savings for the industry. Europe already plays a vital role in Australia’s export strategy, being the largest export region by volume. In 2025, 245 Australian wine exporters shipped 76 million litres of wine valued at $143 million to EU member states.
However, entering the EU market remains challenging due to its status as a leading wine producer and consumer. With the EU consuming around 1.2 billion nine-litre cases of wine in 2024, accounting for nearly half of global consumption, local producers dominate the market. Yet, imported wines still carve out a significant niche.