India and EU Agree on Five-Year Most Favoured Nation Status in Free Trade Deal

India and the European Union have agreed to grant each other Most Favoured Nation (MFN) status for five years under their recently concluded free trade agreement (FTA), effective upon ratification. This provision ensures neither side can offer more favorable tariff terms to other partners during this period. The deal aims to reduce or eliminate tariffs on over 90% of traded goods, enhance customs cooperation, align standards with WTO rules, and promote digital trade, with commitments becoming legally binding after ratification.