According to The Drinks Business, the long-awaited trade agreement between Australia and the European Union is poised to transform the landscape for Australian wine exports. The elimination of tariffs and regulatory reforms are set to enhance the competitive edge of Australian wines in one of the globe’s largest wine markets.
Industry experts highlight that this agreement comes at a pivotal time, as producers are in search of stable, high-value markets amid a backdrop of global oversupply and changing trade dynamics.
After eight years of negotiations, Australia and the EU have finalized a free trade agreement that will abolish import tariffs on Australian wine entering EU markets once the deal is implemented. Previous discussions had stalled in 2023 due to disagreements over agricultural quotas, particularly concerning Canberra’s request for a low tariff quota on over 40,000 tonnes of beef annually.
This renewed agreement is particularly significant given the broader context of trade disruptions, especially with tariffs imposed by the United States encouraging both parties to expedite a resolution.
The removal of EU import duties on Australian wine is seen as a major victory for the wine sector. Lee McLean, CEO of Australian Grape and Wine, emphasized that this tariff removal will directly benefit exporters and bolster the long-term competitiveness of Australian wine in a vital global market.
According to Australian Grape and Wine, this tariff change is projected to yield approximately AUD $14.5 million in annual savings for the sector.
Europe plays a crucial role in Australia’s export strategy, being the largest export region by volume. In 2025, 245 Australian wine exporters sent 76 million litres of wine valued at $143 million to EU member markets.
However, entering the European market is challenging due to its status as both a leading producer and consumer of wine. In 2024, the EU consumed around 1.2 billion nine-litre cases of wine, accounting for approximately half of global consumption, with over 90 percent of the wine consumed produced domestically, primarily in Italy, France, Spain, and Germany.