document.writeln("

Mandelson sings a different tune — pleads for imports
Brussels/ New York: Peter Mandelson, the EU trade commissioner yesterday warned of clothing shortages and higher prices for Europe's consumers this autumn unless member states agreed to free 80 million items of Chinese imports stuck in European ports.

Mandelson has over the last few days been backtracking, seeking a deal that would extricate Brussels from its trade dispute with Beijing. Mandelson, under severe pressure from retailers and business organisations across Europe, is now scheduled to present his proposals to ambassadors of the 25 EU countries today, before submitting them to his fellow commissioners tomorrow.

The trade commissioner's comments came as negotiations resumed in Washington between China and the United States over the temporary quotas imposed by the Bush administration to protect American textile companies following a surge in imports this year.
Both the EU and the US have seen cheaper Chinese garments undercutting domestic producers since the final phasing out of the multifibre agreement, which had set quotas on foreign imports, on January 1 this year.

Mandelson told the European parliament's international trade committee that unless the backlog of blocked goods was cleared, there would be "severe economic pain" for many smaller and medium-sized retailers. "It could mean some shortages during the autumn but, even more likely, higher consumer prices for many of our citizens who cannot afford to pay more for them."

Mandelson will have to win over at least two from the triumvirate of France, Italy and Spain for a compromise solution if he is to break the "blocking minority" of protectionist-minded countries so far opposed to releasing all the items, including 50m pullovers, warehoused at ports.

"The price of rejecting my proposals is harm to the consumer. The gain is keeping the agreement alive and the overall restrictions in place over the next three years," he said.

Meanwhile, clothing manufacturers in the US claim that nineteen factories have been forced to close since January, costing 26,000 American jobs, and that many more will be lost unless restrictions are imposed.

The Bush administration has already sanctioned temporary quotas on imports of knitted shirts, cotton trousers and underwear, limiting growth to 7.5% a year. It is considering limits on six other categories including wool trousers, dressing gowns, bras and jumpers.
Back to News Review index page  

Bank of China float to be handled by UBS and Goldman Sachs
Beijing: Bank of China has named investment banks Goldman Sachs and UBS to handle its planned US$4bn stock market float next year, one of the most sought after IPO underwriting jobs in years.

The bank's own international arm will be the third lead underwriter.

The decision is a blow to Deutsche Bank and Merrill Lynch, both of whom were also vying for the business, which is expected to generate more than US$120mn in fees. The losers could eventually land secondary roles in an enlarged syndicate team.

Goldman Sachs had been the frontrunner due to its involvement in the listing of Bank of China's Hong Kong unit in July 2002.
Back to News Review index page  

Goldman Sachs, Allianz and American Express in US$3bn ICBC deal
New York: Goldman Sachs, Allianz and American Express have agreed to pay some US$3bn for a stake of about 10 per cent in the Industrial and Commercial Bank of China, the country's largest, in a deal that could become the biggest foreign investment in a Chinese lender.

People close to the situation said that, after months of talks, the consortium led by Goldman Sachs' private equity arm on Tuesday signed a memorandum of understanding that would pave the way for the investment in state-owned ICBC.
Back to News Review index page