NEW DELHI/BRUSSELS – The European Union and India will grant each other Most Favoured Nation status under a landmark trade deal, barring better tariff deals for others for five years, according to a draft text released Friday.
The agreement, finalized last month after years of talks, promises to slash tariffs on 96.6% of goods by value once ratified, likely within a year. EU officials project it will double exports to India by 2032, saving European firms €4 billion ($4.7 billion) in duties, while boosting two-way trade amid rising global frictions.
Key exclusions shield sensitive agriculture like soya, beef, sugar, rice, and dairy. Both sides pledge no new import/export curbs beyond WTO rules, plus deeper digital trade ties in a future free-trade push.
To cut red tape, they plan to align food safety and plant health with WTO standards, simplify certifications and audits, and boost customs cooperation for quicker clearances. Post-ratification, annual import data swaps will track progress, with non-discriminatory appeals for customs disputes.
The pact champions an open digital economy: curbing barriers, recognizing e-contracts and signatures, and upholding privacy rights while respecting data rules. On climate, the EU will channel finance to aid India’s emissions cuts.
This deal positions EU-India as a stability anchor in turbulent trade waters, blending market access with sustainability.