India and European Union to grant each other Most Favoured Nation status for five years under trade deal

Key facts

• India and the European Union (EU) will grant each other Most Favoured Nation status for five years after their trade deal takes effect.
• The deal aims to eliminate or reduce tariffs on 96.6% of traded goods by value and is expected to double EU exports to India by 2032.
• European companies are projected to save 4 billion euros in duties once the agreement is implemented.
• Agriculture-related items such as soya, beef, sugar, rice and dairy have been excluded from the trade deal.
• Both sides agreed not to impose new import or export restrictions beyond World Trade Organization (WTO) rules.
• India and the EU will align food safety and plant health measures with WTO standards and streamline certification and audit procedures.
• The pact includes commitments to enhanced customs cooperation and faster clearance of goods.
• Annual import data will be exchanged one year after the pact takes effect to monitor implementation and tariff preference usage.
• The agreement promotes paperless trade and legal recognition of electronic contracts, signatures and authentication.
• The EU will mobilise finance and investment to support India’s efforts to cut greenhouse gas emissions under the pact.