It full protection to the EU’s geographical indications and includes a clear Australian commitment to protect the EU traditional denominations.
The agreement provides for the immediate protection of some EU geographical indications for wines. For the use of other terms, phase-out periods have been agreed. In particular, Australian producers will not be able to continue the use of important geographical names, such as ‘champagne’, ‘port’, ‘sherry’, along with some traditional wine terms, such as, ‘Amontillado’, ‘Claret’ and ‘Auslese’ from 1 September 2011 onwards. In return there is EU recognition of an additional 16 Australian wine-making techniques and of the 16 Australian geographical zones
The new agreement also lists optional particulars that may be used by Australian wines (i.e. an indication of vine varieties, an indication relating to an award, medal or competition, an indication relating to a specific colour, etc) and regulates the indication of vine varieties on wine labels. It outlines the conditions for Australian wine producers to continue to use a number of quality wine terms, such as ‘vintage’, ‘cream’ and ‘tawny’ to describe Australian wines exported to Europe and sold domestically.
In 2009, EU wine exports to Australia were worth about €68 million and Australian exports to the EU are 10 times as big at €643 million.