India, European Union agree on Most Favoured Nation status for 5 years, shows draft trade deal

On January 27, the two sides announced that talks on the free trade agreement had concluded. The pact, described as the ‘mother of all deals’, will allow 93 per cent of Indian exports to enter the 27-nation bloc duty-free. Imports of luxury cars and wines from the European Union are also set to become cheaper.

According to the draft agreement released on Friday by the Union commerce ministry, India and the European Union plan to grant each other Most Favoured Nation status once the agreement takes effect.

This means neither side can give more favourable tariff terms to other trading partners for five years.