King Valley wine producers and others throughout the nation will be able to continue using the prosecco name following a landmark trade deal with the European Union and eight years of negotiations.

Australian Prime Minister Anthony Albanese on Tuesday announced the milestone that will lower trade and investment barriers between Australia and the European Union – a market of around 450 million people.

The Italian government previously sought geographic indicator claims on certain products as it believed they were linked to place names and should have limited rights to country of origin.

However, Australian parties disagreed as prosecco has always been a term for a grape variety.

"We have preserved the right for Australian winemakers to keep making and selling Prosecco domestically," Prime Minister Anthony Albanese said.

"We have protected the rights of Australians to continue using well known terms such as parmesan, and kransky.

"Grandfathering and lengthy phase-out periods have been secured for a limited number of terms such as Feta, Romano and Gruyere.

"The deal will strengthen our economic and strategic partnership; demonstrate our mutual commitment to open and rules-based trade; and diversify our trade – bolstering Australia’s competitiveness, growth and resilience in an increasingly uncertain global trade environment."

The trade agreement will result in 98 per cent of the current value of Australia’s exports entering the European Union duty free.

Mr Albanese said Australian farmers and producers will benefit from the elimination of almost all European Union tariffs on agricultural products.

He said this includes wine, nuts, fruit and vegetables, honey, olive oil, most dairy products, wheat and barley, and seafood.

For example, Australian wine producers and exporters will benefit to the tune of around $37 million annually with the removal of European Union import tariffs. 

For other important agricultural products, the agreement delivers commercially meaningful access through new or expanded tariff rate quota volumes, including for beef, sheep meat, sugar, rice, wheat gluten, skimmed milk powder and natural butter.

The removal of most Australian tariffs on imports from the EU will make things like European wine, spirits, biscuits, chocolates and pasta cheaper at Aussie checkouts.

Farmers and businesses will also benefit from cheaper motor vehicles and machinery.

Almost all Australian exports of manufactured goods and mineral resources will face zero import tariffs into the European Union.

For example, the elimination of European Union tariffs on Australian critical minerals and hydrogen will support our ambition to become a renewable energy superpower and help stabilise supply chains.

The trade agreement will support investment in both directions.

The European Union was Australia’s second largest source of foreign investment in 2024, with total investment stock worth $869.3 billion.

Australian companies, including small and medium-sized enterprises, will have better access to bid for lucrative European government contracts, worth around $845 billion annually, including for rail and construction.

Australian service providers will have greater market access to the European Union, including in financial services, education, tourism and communications. Australian professionals will be able to travel to the European Union more easily and will benefit from streamlined recognition of their Australian qualifications.

The Agreement will enter into force when both Australia and the European Union have completed their domestic processes. 

“Australia’s relationship with the European Union continues to go from strength to strength," Mr Albanese said.

“After almost eight years of negotiations, my good friend president von der Leyen and I agreed to the landmark Australia–European Union Free Trade Agreement.

“I am proud that we have been able to secure this deal, which will deliver benefits for both Australia and the European Union for generations to come.

“This deal creates major new opportunities for Australian exporters in the European Union’s massive $30 trillion economy, and will reduce costs for Australian consumers.

Minister for Trade Don Farrell said the hard-fought deal delivers real commercial gains for Australian exporters, farmers and producers into a market that has been difficult to enter or effectively closed for decades.

“The removal of EU tariffs on most of Australia’s exports gives Australian exporters the opportunity to diversify trade with 27 European countries and 450 million consumers,” he said.

“This is a strategically important and economically valuable agreement at a time when Australian exporters are navigating choppy trade waters. 

“More trade, with more trading partners means more supply chain security, more well-paying jobs, cheaper prices, and more national income to build things like urgent care clinics and improve government services.”