Australian winemakers will no longer be permitted to use established names like Champagne, Port or Sherry for their products under a new agreement with Europe, reports AFP. The deal will be affective from September 1.

Abiding by the terms of the agreement Australia will have to phase out the use of such names. The country signed the deal two years back to protect the European Union’s labelling regime based on geographic locations of products, the European Commission said.

“The agreement is a win-win outcome and achieves a balanced result for European and Australian winemakers,” said Dacian Ciolos, the European Agriculture Commissioner.

“Crucially, we have obtained the commitment that Australian wine producers will phase out the use of key EU Geographical Indications and traditional expressions for wine. This is of utmost importance for European producers,” he said.

Under the deal, Australia will also no longer be able to use traditional expressions such as Amontillado, Claret, and Auslese from September 1, 2011, one year after the agreement comes into force.