Australia drops 'champagne'

Brussels - The European Union and Australia signed on Monday a new trade agreement that will better protect EU wine labelling and ease the certification of Australian wines entering the 27-nation bloc.

Under the deal, the most comprehensive such accord concluded with a non-EU country, Australia will end the "misuse" of terms like Champagne, Port and Burgundy, which are tied to geographical locations in Europe.

Other contentious names include Chablis, Graves, Manzanilla, Marsala, Moselle, Sauterne, Sherry and White Burgundy.

These will be phased out within one year of the pact entering into force, although the use of "Tokay," from a region in Hungary, will disappear over 10 years.

"Crucially, we have obtained protection for our geographical indications and traditional expressions, which was of the utmost importance for European producers," EU Farm Commissioner Mariann Fischer Boel said in a statement.

The accord updates an agreement from 1994, which the European Commission said "left out important questions on the misuse of EU significant wine names such as Champagne".

The new deal, signed in Brussels, outlines conditions under which Australia will be able to continue to use certain terms for quality wines, including "vintage," "cream" and "tawny."

The benefits for Australia will include a simpler certification procedure for wines exported to the EU, as well as a more efficient method of recognising wine-making practices.

"This historic agreement demonstrates that careful negotiation can produce a win-win," visiting Australian Foreign Minister Stephen Smith said.

"For Australian producers it means simpler recognition of wine-making techniques and simpler labelling requirements," he said.

- Sapa-AFP