According to The Drinks Business, the long-awaited trade agreement between Australia and the European Union is poised to significantly alter the landscape for Australian wine exports. With the removal of tariffs and regulatory adjustments, Australian wines are expected to gain a stronger foothold in one of the world’s largest wine markets.
This agreement, finalized after eight years of negotiations, will eliminate import tariffs on Australian wines entering the EU, a move that is seen as a critical advantage for exporters. The negotiations had previously 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 comes at a time when producers are looking for stable and lucrative markets amidst global oversupply and evolving trade dynamics. Both Australia and the EU have faced tariffs from the United States, which has further motivated the need to finalize this deal.
Lee McLean, CEO of Australian Grape and Wine, emphasized the positive impact of the tariff removal, stating, “This is great news for our exporters and will enhance the long-term competitiveness of Australian wine in a major global market.” The expected annual savings for the sector from this tariff change is around AUD $14.5 million.
Europe plays a crucial 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 European market remains challenging due to its dominance by local producers. In 2024, the EU consumed approximately 1.2 billion nine-litre cases of wine, with over 90% of this consumption being met by domestic production, primarily from Italy, France, Spain, and Germany. Despite this, imported wines still carve out a significant niche in the market.