Minister for Foreign Affairs Stephen Smith signed the Australia-European Community Agreement on Trade in Wine with European Union Commissioner for Agriculture Mariann Fischer Boel.

Minister for Agriculture, Tony Burke, said the agreement would deliver significant advantages for our winemakers.

The benefits for Australian producers include:

• European recognition of an additional 16 Australian winemaking techniques, including the use of oak chips to add flavour;
• simpler arrangements for the approval of winemaking techniques that may be developed in the future;
• simplified labelling requirements for Australian wine sold in European markets, to allow optional information such as the number of standard drinks;
• protection within Europe for Australia's 112 registered geographical indicators, including Barossa Valley, Mudgee, Margaret River and Rutherglen; and
• Australia can continue to use a number of "traditional expressions", such as 'vintage', 'tawny' and 'ruby'

In 2007-08 the European Community accounted for around half of all Australian wine exports – worth $1.3 billion.

During that year, Australia exported 397 million litres of wine to the EC and imported 18 million litres from Europe.

Mr Burke said the agreement would protect Australian winemakers' access to the valuable market.

"This shows Australian wines have such a strong global reputation that they don't need to hide behind European names – they can market themselves independently," Mr Burke said.