Riverland wine producers will be able to use the name Prosecco for now, after an Australia-EU free trade deal broke down.
Trade Minister Don Farrell recently held talks with European officials, however the use of geographical indicators was said to be a key sticking point.
The EU wanted greater protections, including a call for Australian producers to not use the name Prosecco, despite it recognised as a grape variety for decades.
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The call to walk away from the deal has been applauded by some, including the National Farmers Federation.