Overview
- The draft confirms that India and the EU will grant each other Most Favoured Nation treatment for five years from entry into force, with continuation subject to a review.
- A dedicated annex on model mediation targets mutually agreed solutions within 60 days of mediator appointment and, by default, requires a mediator who is not a national of either side.
- The text locks in WTO‑aligned guardrails on new trade restrictions and adds a digital trade chapter for paperless processes and recognition of e‑contracts, alongside extensive EU services commitments spanning 144 subsectors.
- Tariff liberalisation provides immediate duty elimination on 70.4% of tariff lines covering about 90.7% of India’s export value, with sensitive agricultural items shielded and some cuts phased in.
- India must notify and consult the EU before introducing or raising export duties on non‑agricultural goods, and the pact streamlines customs, certification, and appeal procedures to speed trade flows.