Prosecco makers popping corks as free trade deal struck
Prosecco producers are “popping the corks” to celebrate the long-awaited free trade deal that cuts tariffs on essential goods, but it has sparked a furious backlash from farmers.
After almost a decade of negotiations, Australia and the European Union have reached an agreement that will expand trade in several areas.
European Commission President Ursula von der Leyen traveled to Canberra to sign the deal alongside Prime Minister Anthony Albanese and said on Tuesday it was a fair deal that “benefits your business and benefits ours”.
Australia will scrap a five per cent tariff on imports of European products, which affects carmakers such as BMW and Mercedes, as well as producers of goods such as fashion and food and drink.
EU tariffs will be removed on imports of a wide range of Australian goods, including critical minerals, processed products and many dairy products.
Despite pressure from European winemakers, Australian producers will be allowed to continue using the term “prosecco” for domestic sales, but will have to phase out the term over the next decade for exports.
Katherine Brown, Brown Brothers’ fourth-generation winemaker, said she was “going to pop the corks and celebrate” after years of anxiously waiting for negotiations to conclude.
“It’s great to be told that the prosecco name for this grape variety will be protected domestically in Australia,” he told AAP.
“In export markets the name will be phased out, but 95 per cent of Australian prosecco is already drunk in Australia so we should look at this as a big win.”
Ms Brown said the deal provided a future for Australian prosecco as growers were hesitant to plant grapes during lengthy negotiations that “left the industry in limbo”.
“It now gives us a really strong stance to invest more, establish more prosecco vineyards and continue to enjoy this incredible decline,” he said.
“The fact that we have to protect our name in Australia is a central part of our fight.”
Domestic producers will retain the right to describe their products as parmesan and kransky, but other cheese names such as feta, romano and gruyere will be phased out over time.
Farmers and rice growers are among those who remain angry about the deal, with some saying it does not provide commercially meaningful market access despite the increase in quotas.
After pushing for years to expand export quotas, the country’s red meat industry condemned the agreement, calling it the worst free trade deal the country has ever signed.
Market access for an additional 30,600 tonnes of beef and 25,000 tonnes of sheep meat annually fell well below the minimum quantities available to rival countries such as New Zealand.
Sheep Producers Australia managing director Bonnie Skinner said the deal for sheepmeat was not substantially different from the deal Australia rejected in 2023.
“The increase in reach is small and critical, not unlocking real commercial opportunities,” he said.
“For a premium market like the EU, this falls short of what is needed.”
An additional 8,500 tonnes of rice were delivered, leaving SunRice Group CEO Paul Serra “incredibly disappointed”.
He said Australian rice growers were “already facing increasing pressures from water buybacks and ongoing dry conditions in southern NSW”.
“The government’s failure to provide meaningful EU market access for Australian rice is a significant shortcoming in the FTA,” he said.
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