EU and Australia finally reach compromise on Prosecco GI

This morning, Europe woke up to the news that agreement had finally been reached on the EU-Australia free trade agreement - including a compromise on the controversial topic of geographical indications.

Image by Vilius Kukanauskas via Pixabay.

Geographical indications had been a major sticking point during the negotiations, which first began in 2018. Indeed, geographical indications - especially the Italian sparkling wine, Prosecco - were part of the reason why the negotiations stalled in 2023. As explained in Politico this morning, "The issue was politically sensitive, with Australia’s European communities arguing they should be allowed to continue producing their food products under their original names." Australian Prime Minister Anthony Albanese remarked today:

“Whether it’s Greeks coming here and creating feta, or Italians coming and doing Parmesan [cheese], or people from Eastern Europe doing Kransky sausages … It’s a connection with Europe. It’s part of our strength”

Australian wine producers took the dispute international. When the Italian Prosecco association sought to register the Prosecco GI in Singapore, the matter reached the Court of Appeal of Singapore (their apex court). In one of her first posts for the IPKat in 2023, this Kat discussed the ruling here, which acknowledged that 'Prosecco' was, in fact, a plant variety name. Amongst the evidence given to the court was the fact that it was only after Italy claimed 'Prosecco' as a protected designation of origin that the EU declared the 'Prosecco' grape variety would be renamed as 'Glera' in 2009.

However, the Court of Appeal of Singapore held that the use of the Prosecco GI for wine would not be "likely to mislead the consumer as to the true origin of the product." There was insufficient evidence that Singaporean consumers would know that 'Prosecco' was the name of the grape variety used to produce the wine.

The Compromise

After years of acrimony, the Australian and Europeans found a way to meet in the middle. In the summary from the Australian Department of Foreign Affairs and Trade (DFAT), we learn that Australia has agreed to protect 396 EU GIs. Based on the response to public consultations, Australia secured a range of flexibilities for certain commercially significant terms, including continued free use (e.g., parmesan), grandfathering for existing users (e.g., Feta) and phasing out (e.g., Ouzo).

Importantly, while Australia will protect the Prosecco GI, the Australian wine producers will retain the right to use 'Prosecco' as the name of a grape variety. Australia has also agreed to new labelling requirements on how 'Prosecco' can be presented on a wine label.

However, the use of the name 'Prosecco' for wine produced in Australia will be limited to the Australian domestic market. The term will be phased out for Australian wine for export over a period of 10 years from entry into force of the Wine Agreement. Of course, Australian wine made from 'Prosecco' grapes can still be exported after that time, but will not be labelled as 'Prosecco'.

Final Thoughts

The compromise certainly represents a loss for some Australian wine producers: there are reports that the Prosecco export market was worth about $AU 7 million a year. However, with the global uncertainty about trade, this closer relationship between Australia and the EU will be a source of relief in many quarters. And this political agreement confirms once and for all that the Prosecco GI and plant variety name can co-exist (for more on co-existence of plant varieties and GIs, see here).