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Bra wars shift to US as it tightens textile imports
New York: Another chapter, in the ongoing controversy regarding Chinese textile imports, opened yesterday as the US imposed extra curbs on Chinese clothing imports, with the latest trade talks between the two countries breaking down. The controversy, which has already engulfed the European Union, has been dubbed the "bra wars".

The new limits on Chinese-made bras and "other body supporting undergarments" also take in imports of synthetic filament fabric used to make high-end clothing and reflect the growing friction in economic ties between the two countries.

A decades old quota system was abolished at the beginning of this year as part of China's entry to the World Trade Organisation. All quotas must be lifted by 2008, but in the meantime countries can impose "safeguards" designed to allow Chinese imports to grow more gradually.

US textile and clothing makers contend that increased imports have forced 19 textile plants to close and cost the country 26,000 jobs just this year as imports doubled to US$7.4bn.

However, many trade experts contend that the new limits will save few American jobs as retailers are expected to simply move their purchase orders to other low-wage countries in Asia or Latin America.
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Abu Dhabi Group to invest US$1bn in Bangladesh
Dhaka: Abu Dhabi Group, a United Arab Emirates business conglomerate, has signed a memorandum of understanding (MoU) with the Board of Investment (BoI) to invest US$1bn in cellular telephone, hotel and pharmaceutical projects in Bangladesh.

Roughly half of the amount will be invested in the cellular phone sector, US$125-150mn in a five-star hotel in the capital, and the rest in a pharmaceutical project by the Middle East company.

This is the second largest investment proposal made by a foreign company in Bangladesh after the Tata Group, which has already signed a MoU with the BoI to invest US$ 2.5bn in steel, power and fertiliser projects.

Omar Z Al Askari, member of the Abu Dhabi Consortium and Nazrul Islam, member of the BoI signed the MoU on behalf of their respective sides at a city state guest-house.

Abu Dhabi Group chairman Sheikh Nahayan Mabarak Al Nahayan, foreign minister M Morshed Khan and BoI executive chairman Mahmudur Rahman were present at the signing ceremony.

Mahmudur Rahman said apart from the investment in cellular phone, five-star hotel and the pharmaceutical infrastructure, the group has also shown keen interest to invest in the energy sector. "We have talked about the establishment of a private refinery," he said.
Though the group wants to start their investment activities within a month, Rahman said it would take at least another three or four months.

The groups' cellular phone company, Warid Telecom, which has already applied for a mobile telecom licence in Bangladesh, acquired a mobile licence at the cost of US$291mn in Pakistan in 2003.

The Dhabi Group has international investment in the telecom, finance, hospitality, property, oil exploration and supplies sector, and in the automobile industries.
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