Industry figures say the agreement arrives at a moment when producers are seeking stable, high-value destinations amid global oversupply and shifting trade conditions.
After eight years of negotiation, Australia and the European Union have concluded a free trade pact that will remove import tariffs on Australian wine entering EU markets once the agreement comes into force. Talks had previously stalled in 2023 following disagreements over agricultural quotas, including Canberra’s request for a low tariff quota on more than 40,000 tonnes of beef annually.
The renewed compromise arrives against a backdrop of wider trade disruption. Both partners have faced tariffs imposed by the United States, prompting fresh impetus to reach a deal.
The agreement removes EU import duties on Australian wine, an outcome widely viewed by the wine sector as commercially significant.
Lee McLean, chief executive of Australian Grape and Wine, said the tariff outcome would have a direct impact on exporters.
“The removal of tariffs on Australian wine entering the EU is good news for our exporters and for the long-term competitiveness of Australian wine in a major global market,” he said.
According to Australian Grape and Wine, the tariff change is expected to deliver around AUD $14.5 million in annual savings for the sector.
Europe already plays a substantial role in Australia’s export strategy. According to Australian Grape and Wine figures, Europe remains Australia’s largest export region by volume. In 2025, 245 Australian wine exporters shipped 76 million litres of wine worth $143 million to EU member markets.
Competing in a market dominated by local producers
The European Union is both a leading producer and consumer of wine, making market entry challenging for external suppliers. According to IWSR, the EU consumed around 1.2 billion nine-litre cases of wine in 2024, roughly half of global consumption. More than 90 per cent of the wine consumed in the bloc is produced domestically, primarily in Italy, France, Spain and Germany.
Click HERE to read the full article.