The European Union has secured a compromise in its free trade agreement with Australia that will phase out the use of the term “Prosecco” for Australian exports over a 10-year transition period. After that deadline, Australian producers will no longer be permitted to market sparkling wine under the Prosecco name, marking a partial victory for European Geographical Indication (GI) protections.
The agreement has exposed divisions among Italian industry stakeholders. Giacomo Ponti, President of Federvini, described the outcome as a missed opportunity to reinforce the uniqueness of European protected products. “Fake Prosecco bottles base their competitiveness on price: when they sit on the same shelf as our products, they create confusion for consumers,” Ponti said.
Others have taken a more pragmatic stance. Italian farmers’ association Coldiretti welcomed the deal as “an important boost for Italian agri-food exports,” while emphasizing that stronger safeguards for national specialties remain necessary. The organization has long highlighted losses linked to Italian-sounding products in global markets.
The recognition of Geographical Indications has become a central feature of the bloc’s recent trade policy. The European system of DOC and PGI labels generates an estimated €75 billion in annual revenue, yet faces widespread imitation abroad, particularly in countries with large European diaspora communities.
Efforts to secure international protection for these designations have historically met resistance. However, recent bilateral trade agreements have increasingly incorporated GI provisions. The Comprehensive Economic and Trade Agreement (CETA) with Canada in 2017 marked a turning point, followed by accords with Mercosur—set to enter provisional force on May 1—and now Australia.
In the Mercosur agreement, 57 Italian products are protected out of a total of 344 recognized GIs. The EU-Australia deal includes recognition for 165 European GIs and 231 alcoholic beverages. However, the level of protection varies significantly. For example, while “Prosecco” will eventually be reserved for European producers, the rules for Parmigiano Reggiano are less stringent. According to Riccardo Deserti, Director of the PDO Parmigiano Reggiano Protection Consortium, Australian producers are only prohibited from using Italian imagery, such as flags. “It must be clearly labeled as made in Australia,” he noted. Deserti nonetheless sees progress in the EU’s bilateral approach. “We are starting from a context where there was no recognition at all. Now only the United States remains without any form of legal protection,” he said.
Not all industry figures view Australian competition as a significant threat. Giorgio Polegato, President of Coldiretti Veneto’s wine sector, argued that production volumes in Australia are too limited to materially impact Italian exports. “We have obtained the maximum possible,” he said.
L’articolo EU-Australia Deal Sets 10-Year Phase-Out for (fake) “Australian Prosecco” proviene da Italianfood.net.