New Delhi, Feb. 28 -- India and the European Union are set to grant each other Most Favoured Nation (MFN) status under their proposed free trade agreement (FTA).

The provision, included in the draft text released on Friday, will bind both sides to World Trade Organisation (WTO) rules and prevent new import or export restrictions beyond global norms for 5 years, according to a Reuters report.

The agreement, concluded after nearly 18 years of negotiations, is expected to come into force within a year after legal review and ratification by the European Parliament and Indian authorities.

Tariff Cuts and Market Access

The pact will progressively eliminate or reduce tariffs on 96.6 per cent of traded goods by value. India will remove duties...