The European Union (EU) and Australia have inked a new bilateral agreement on trading wine.

The agreement, signed today (6 June), replaces a 1994 accord and will safeguard the EU wine-labelling regime, simplify certification, help agree new oenological practices and phase out Australia's use of the names Champagne and Port within a year of implementation, the EU said. The deal must now be confirmed by the EU Council of Ministers and by Canberra.

Regarding agreeing new oenological practice requirements, the deal includes clear time frames, objection and arbitration procedures, plus sanitary and phytosanitary standards.

For the EU, the agreement will protect its wine-labelling regime by permitting Australian vineyards to list certain details, such as wine varieties, colours and awards and eliminate the use of certain indicators such as Hermitage, Lumbrusco, also within 12 months.