European wine is about to get cheaper for Australians

Australia and the European Union (EU) signed a long-awaited free trade deal on Tuesday.

Under the deal, tariffs on almost all Australian goods being sold in Europe will be lifted, which Prime Minister Anthony Albanese said would boost Australia’s economy by $10 billion annually.

The deal will also make European products such as wine and biscuits cheaper.

Deal

With a population of more than 445 million, the EU is Australia’s third-largest trading partner. Total goods traded between the EU and Australia topped $77.7 billion (€47 billion) in 2025.

Australia and the EU have been discussing a new trade deal since 2018.

On Monday, EU President Ursula von der Leyen arrived in Australia for a three-day visit to sign the long-awaited deal.

Most countries restrict what other countries can bring into their markets.

This commonly takes the form of ‘tariffs’ (taxes paid by the importer).

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Tariffs are typically passed on to the consumer, often making international goods more expensive than domestic goods.

Changes

Under the new deal, tariffs on EU exports to Australia, and Australian exports to the EU, will largely be lifted.

The Government has said this would “make things like European wine, spirits, biscuits, chocolates and pasta cheaper at Aussie checkouts.” Some Australian farmers have raised concerns the extra competition will hurt local producers.

However, the Government has argued the deal will benefit Australian exporters by making their products cheaper for European customers.

Under the deal, there are new restrictions on the names of products made in Australia. This has been a longstanding issue for the EU, which has existing rules in place for the names of products such as champagne.

There will now be new restrictions on the names of ‘feta’ and ‘gruyere’, which will be phased out over time.

However, farmers will be able to continue selling parmesan and prosecco under those names in Australia.