The free trade deal between the European Union and Australia, finalized on March 24, 2026, marks a major turning point for Made in Italy. It combines strong export opportunities with ongoing concerns about protecting traditional product names.
The agreement focuses on removing trade barriers between the two economies, with direct effects on key Italian industries. One of the most significant measures is the elimination of 99% of tariffs on traded goods. For Italian companies, this translates into an estimated €1 billion reduction in export costs, making their products more competitive in the Australian market.
Italy’s agri-food sector is expected to benefit the most. Exports of products such as cheese, pasta, and olive oil are projected to grow significantly, with overall EU exports to Australia potentially increasing by up to 33%. In addition, the deal improves access to Australian raw materials, including rare earth elements and critical minerals that are essential for energy transition technologies and advanced manufacturing.
Despite these advantages, the agreement has triggered strong criticism in Italy. One of the most controversial issues involves the continued use of the name “Prosecco” by Australian producers. Under the deal, the term is treated as a grape variety rather than a protected geographic indication, allowing local wines to use the name legally.
Similar concerns apply to products like Parmigiano Reggiano and Asiago, where protection against imitation goods may remain limited. Critics argue that this could weaken the value of Italian branding and confuse consumers.
There are also worries about differences in food safety and sustainability standards, which some believe could create unfair competition.
Overall, the deal presents a clear trade-off: easier access to a wealthy market and lower export costs on one side, and potential risks to the identity and legal protection of iconic Italian products on the other.
