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 tariffs and regulatory adjustments are expected to enhance the competitiveness of Australian wines in one of the globe’s largest wine markets.
Industry experts highlight that this agreement arrives at a crucial time when producers are on the lookout for stable, high-value markets amidst a backdrop of global oversupply and fluctuating trade conditions. After eight years of negotiations, the free trade pact will abolish import tariffs on Australian wine entering EU markets upon its enactment. Previous discussions had stalled in 2023 due to disputes over agricultural quotas, including Australia’s request for a low-tariff quota on over 40,000 tonnes of beef annually.
This renewed agreement comes as both partners face tariffs imposed by the United States, creating a renewed urgency to finalize a deal. The agreement’s removal of EU import duties on Australian wine is seen as a significant win for the wine sector.
According to Lee McLean, CEO of Australian Grape and Wine, this tariff removal will directly benefit exporters. He 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.”
Estimates from Australian Grape and Wine suggest that this tariff change could yield approximately AUD $14.5 million in annual savings for the sector.
Europe plays a pivotal 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 markets.
However, entering the European market poses challenges due to its status as both a leading producer and consumer of wine. The IWSR reports that the EU consumed approximately 1.2 billion nine-litre cases of wine in 2024, accounting for nearly half of global consumption. Notably, over 90 percent of the wine consumed within the bloc is produced domestically, predominantly in Italy, France, Spain, and Germany.
Despite this local dominance, imported wines still occupy a vital niche in the market.