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Business Alert – US




23 Oct 2009
ITA Calculates Expected Non-Market Economy Wages for 2009

The DOC’s International Trade Administration sought comments by 19 October on its calculation of 2009 expected non-market economy wages for use as the surrogate value for direct labour in AD proceedings involving NME countries, including mainland China. These expected NME wages are calculated annually, with the latest calculation involving 2009 wages derived from 2007 data. The calculation is made in two steps: (1) the relationship between hourly wage rates (obtained from the International Labour Organisation’s Yearbook of Labour Statistics) and per-capita gross national income (obtained from the World Bank) is estimated using regression analysis; and (2) the GNI of each NME country, including mainland China, is applied to the regression, yielding an expected hourly wage. Using this methodology, the ITA came up with an expected NME wage rate of US$1.27 per hour for mainland China.