Article Summary
The Australia-EU Free Trade Agreement introduces new geographical indication protections that may affect how certain products are named, marketed and sold in Australia. While some businesses may face restrictions on the use of particular terms, the agreement also creates opportunities for Australian producers to protect and promote their products both domestically and internationally.
You’ve probably heard of the limitations on using the name “champagne” but did you know that a new international trade agreement between Australian and the European Union may limit the use of hundreds of additional product names?
Why Product Names Matter
After eight years of formal negotiations, the free trade agreement (FTA) between Australia and the European Union (EU) settled on 24 March 2026. The FTA covers a wide range of matters including tariff reductions, increased market access for agricultural and dairy products, digital trade provisions, and collaboration on critical minerals. Of particular importance is the introduction of the geographical indication (GI) registration system to Australian markets. A GI is a label used on products that originate in a specific geographical location and possess qualities or a reputation linked to that origin.
The rights of a GI enable those who can lawfully use the indication to prevent its use by a third party whose product does not conform to the applicable standards. For example, producers of Champagne may restrict use of that term for sparkling wine not produced in the Champagne region of France or in accordance with the relevant standards. However, GI protection does not prevent others from producing similar goods using the same techniques.
How the FTA May Affect Australian Producers
Once ratified, the new FTA is expected to require Australia to recognise and protect approximately 396 spirit and agricultural EU GIs from misuse. This may include some names that overlap with existing Australian trademarks. The amended EU-Australia Wine Agreement will also tighten the conditions for use of terms such as ‘Prosecco’. After a two-year transition period, Australian winemakers using prosecco grapes may need to prominently identify the wine’s Australian origin, such as King Valley or Murray Darling.
The effect this may have on Australian producers is difficult to quantify. However, there are provisions in the new agreement that provide certain workarounds. These include exceptions, grandfathering arrangements and phase-out periods. For example, terms such as ‘feta’ and ‘gruyere’ may continue to be used by Australian producers who have used those names in good faith and consistently for at least five years before the FTA commences. Other terms, such as ‘fontina’, may be phased out over five to seven years depending on the product.
Many products are not restricted under the FTA, provided that their use is not misleading. For example, ‘Parmigiano Reggiano’ is a well-known EU GI and the protection of the term in the EU extends to ‘parmesan’. Australia has negotiated to the effect that allows ‘parmesan’ to continue to be used, on the condition that the packaged product contains a country-of-origin label.
Although the FTA may create challenges for some Australian producers, there are opportunities to strengthen and protect exported and domestic products. Australian GIs for spirit and agricultural goods are eligible for registration, which will result in their recognition as GIs in other jurisdictions, including the EU, once they are protected in Australia. Moreover, the EU agreed to protect seven additional Australian GIs in the EU. Australia has also secured a commitment from the EU that Australian exporters can use all existing grape variety names indefinitely, even if they later become EU GIs.
What Happens Next?
We can expect the treaty to be signed in late 2026 or early 2027. Afterwards, Australia and the EU will commence further domestic legal and parliamentary processes before the FTA enters into force. This process could take up to 12 months.
Once the Australian GI system is in place, Australia will be able to put forward new Australian GIs under the procedure set out in the FTA, which creates a pathway for Australian businesses to seek registration of their GIs through Australian authorities.
For now, Australian businesses can review their operations – including the description, advertisement, and packaging of products – to consider whether they are likely to be impacted by the FTA protections.
Our Intellectual Property + Technology team can assist with reviewing trademark operations and product details. If you would like us to check your current arrangements, we’re happy to help.
For further information contact Managing Director Ben Gouldson.
The assistance of Legal Assistant Amelie Clifford in researching this article is gratefully acknowledged.
Are They Watching You? The latest on facial recognition technology use.