EU resolves Aussie deadlock

New wine trade stipulations agreed between the European Union and Australia came into force yesterday, 1 September.

The agreement guarantees the protection of European labelling and geographical terms such as Burgundy, Champagne and Port, preventing the Australian industry from using these region-specific names.

Australian producers now have a year to phase out the use of these terms along with others such as Sherry, amontillado, claret and auslese from their labels.

The terms vintage, cream and tawny are still allowed for Australian wines intended for export. Over 100 Australian geographical regions (from a total of 117), including Margaret River and Barossa Valley, will now receive reciprocal protection in the EU.

The EU will also lift restrictions on 16 Australian winemaking methods, including the use of resin and oak chipping, and ease the requirements on labelling regarding blending and alcohol levels.

Dacian Ciolos, EU commissioner for Agriculture and Rural Development called the agreement a “win-win outcome", on the grounds that it "achieves a balanced result for European and Australian winemakers."

Ciolos added: “Crucially, we have obtained the commitment that Australian wine producers will phase out the use of key EU geographical indications and traditional expressions for wine. This is of utmost importance for European producers.”

Australian wine will also get easier access to EU markets, which are worth €643 million a year to its industry.

European wine shipped to Australia, by contrast, is worth a mere €68m.

Rupert Millar, 02.09.2010