Australian wine exporters must stop using the term "prosecco" on labels for overseas shipments following a new free-trade agreement with the European Union.

The move marks a significant compromise in a trade deal that balances the interests of the agricultural and wine sectors. While domestic producers can keep the name for local sales, the restriction on exports creates a branding challenge for wineries in regions like the King Valley.

The agreement was signed in May 2026 after trade negotiations between Australia and the EU lasted eight years [1]. Under the terms, Australia has agreed to comply with the EU's requirement to protect "Prosecco" as a geographical indication. This means the name is legally reserved for wines produced in specific regions of Italy.

Australia remains the only country outside Italy that retains the right to use the name prosecco domestically [2]. However, the new deal obliges the government to ensure that any wine exported to the EU or other markets under the agreement does not use the protected term.

The timeline for the transition varies by report. Some sources indicate that export labels will need to change in the coming years [2], while others suggest local producers will have to phase out the name more imminently [3].

Despite the loss for the wine industry, other agricultural sectors stand to gain. Red-meat exports from Australia to the EU could see a 10-fold increase under the new terms [4]. This trade-off reflects the broader goals of the agreement to open European markets to Australian livestock and produce in exchange for protecting European intellectual property and regional branding.

Winemakers in the King Valley, a primary prosecco-producing region, will now need to develop new branding strategies for their international customers to maintain their market presence without the use of the protected Italian name.

“Australia remains the only country outside Italy that retains the right to use the name prosecco domestically.”

This agreement illustrates the high value the EU places on 'geographical indications,' treating regional names as intellectual property. By sacrificing the export name of its prosecco, Australia has secured a strategic economic win for its beef and livestock industries, prioritizing high-volume commodity growth over the branding of a specific wine style.