Two-way deal for Australian producers

The Australian wine industry has reached an agreement with the EU which will see European geographic terms protected.

Australia will phase out the use of EU terms such as Champagne and port in internal markets.

The agreement also clarifies terms that Australian wine producers may use on labels, including vine varieties, awards and colour indication.

In return, the EU has agreed to simplify the export process for Australian wines.

Agriculture commissioner Marian Fischer Boel said the agreement, which follows years of negotiations, "safeguards EU interests". It will now go forward for approval by the council of ministers and Australian authorities. The agreement replaces the 1994 accord.