Fight over parmesan and prosecco stalls EU-Australia trade deal

The EU is opposed to the use of "prosecco" for wine and "parmesan" for cheese in Australian products. PHOTO: REUTERS

CANBERRA – Australia said a free trade agreement with the European Union still has several hurdles to overcome, including the naming of some food products and concerns over the clearance of agricultural land. 

The EU is opposed to Australian products that use terminology such as Prosecco for wine or Parmesan for cheese, said Agriculture Minister Murray Watt, who is in Berlin this week to discuss a deal with the bloc.

This is to do with use of so-called geographical indications where products are linked to a specific region.  

“We have expressed repeatedly that is a very difficult issue for our producers and we think they should be able to use those terms,” Mr Watt said in an interview with ABC Radio. “The European Union is making it clear that is a red line for them as well.”

The EU is also balking at use of the word Feta for cheese.

Australia and the EU started talks on an FTA in 2018. Discussions got disrupted in 2021 after the government in Canberra cancelled a $37 billion (S$49 billion) deal with France to build conventional submarines.

The EU has been trying to revive trade deals to secure allies amid turmoil caused by Russia’s war in Ukraine.

Sustainability is also a key EU requirement for the trade agreement.

The bloc in December agreed to a historic law that will stop products that destroy forests from being sold in European shops and supermarkets. There are worries that this could be applied to block access for Australian beef. 

Australia is committed to demonstrating the “best possible sustainability practices”, Mr Watt said.

He blamed the country’s weak environmental image on the previous federal government.

Mr Watt was also in London this week to discuss a separate FTA with Britain. He said the deal will get done as soon as possible. BLOOMBERG

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