Australian wine producers will soon be banned from making wines labelled and marketed as champagne, port and sherry, after the EU and Australia signed a deal to phase out the use of Europe's protected wine names by Australian drink producers within one year.
Under the terms of the deal, signed on 1 December, Australian champagne will be known as “sparkling wine” and port will be re-named “liqueur wine”.
Australian vintners will also have to phase out use of terms including claret, Amontillado, Burgundy, Chablis, Manzanilla, Sauterne and Auslese.
The deal protects EU wine producers by preventing the Australian wine industry from using European geographical indications (GIs) and traditional expressions, which are a significant and lucrative marketing advantage.
EU wine producers are facing more and more competition on the global market from Australian, South African and American wines. In 2007, Australian wine exports to the EU were worth €950 million; EU wine exports to Australia were worth just €84 million.
Similar bilateral deals could be tabled for these large wine producing areas, a Commission official said.
