The EU and Australia have agreed on a wine deal in which imitations will no longer be sold with names like champagne and sherry.

Australian wines, which have captured a big slice of the European market, have regularly been labeled with so-called European "geographical indicators."

Under the new labelling deal, Australian producers will not be able to use 11 prestigious European drink labels.

In turn, Australia will receive protection for 112 of its geographical indicators, including Barossa and Coonawarra.

Producers in Australian and the EU will have a year to phase out their use of protected brand names.

The protected European names include burgundy, port, amontillado, claret, Auslese and Tokay.