India, Nepal to discuss trade

India and Nepal are beginning a new round of talks in Delhi, to discuss the renewal of a five-year-old preferential trading deal.

India wants to stem a large rise in Nepalese exports of five products including copper wire and acrylic yarn.

It wants a 30% import tax imposed on the products and has already imposed anti-dumping duty on some items.

Delhi is also concerned that Nepal is being used as a conduit for cheap Chinese goods.

Nepal, which is dependent on India to take more than 40% of its exports, is trying to resist any change in the terms of the trade agreement.

From the newsroom of the BBC World Service