According to The Drinks Business, the long-awaited trade agreement between Australia and the European Union is set to transform the landscape for Australian wine exports. The elimination of tariffs and regulatory adjustments are expected to enhance the competitiveness of Australian wines in one of the world’s largest wine markets.
Industry experts highlight that this agreement comes at a pivotal time when producers are in search of stable, high-value markets amidst global oversupply and evolving trade dynamics.
After eight years of negotiations, the two parties have finalized a free trade pact that will abolish import tariffs on Australian wine entering EU markets once implemented. Previous discussions had stalled in 2023 due to disagreements over agricultural quotas, including Australia’s request for a low tariff quota on over 40,000 tonnes of beef annually.
The renewed agreement arrives in the context of broader trade disruptions, particularly with tariffs imposed by the United States, which has spurred both partners to finalize a deal.
The removal of EU import duties on Australian wine is seen as a significant commercial advantage. Lee McLean, CEO of Australian Grape and Wine, stated, “The removal of tariffs on Australian wine entering the EU is excellent news for our exporters and the long-term competitiveness of Australian wine in a major global market.”
According to Australian Grape and Wine, this tariff change is expected to yield approximately AUD $14.5 million in annual savings for the sector.
Europe plays a crucial role in Australia’s export strategy, remaining 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 European market remains challenging, as the EU is both a leading producer and consumer of wine. In 2024, the EU consumed around 1.2 billion nine-litre cases of wine, accounting for roughly half of global consumption, with over 90 percent produced domestically, primarily in Italy, France, Spain, and Germany.
Despite this dominance, imported wines continue to carve out a significant niche in the market.