TRADE has been researching the potential of using the TRADE-DSM® to bridge the information gap and reveal untapped export opportunities among the countries of the Indian Ocean Rim Association (IORA), which could set the scene for stronger regional trade and investment and more harmonised export promotion strategies. 

Several IORA members are developing countries whose market selection decisions are hampered by a lack of information on which to base sound market choices. In a recently published paper (appearing in the Journal of the Indian Ocean Region) titled ‘Identifying export opportunities between IORA member states using the TRADE-DSM® methodology: A case study involving South Africa and Thailand’, TRADE team member and lead author Dr Adelia Jansen van Rensburg remarked: 

‘Despite the existence of several market selection techniques, a lack of market information has been identified as a major impediment to export activity in the Indian Ocean Rim region’. 

She went on to discuss the potential of the region for South African exporters and how the TRADE-DSM® methodology could be used to identify bilateral trade opportunities among member countries – just as it has exposed untapped trade potential in other parts of the world. The paper reported on the findings of a practical case study involving South Africa and Thailand (both IORA members) which had both cited the lack of market information as a major stumbling block in their attempts to identify promising new markets. Among the main ‘untapped’ potential exports from South Africa to Thailand are food, chemicals and basic non-ferrous metals; from Thailand to South Africa, the main ‘untapped’ potential exports were identified as textiles and television, radio and communication equipment. Applying the TRADE-DSM® to more IORA member countries could reveal a wealth of new trade opportunities, thereby opening up more bilateral pathways and laying the foundation for a more integrated, regional approach to export promotion and development. 

The paper can be accessed here.

In another Asian initiative, TRADE team members have also developed a TRADE-DSM® specifically for China. Together with Prof Dahai Fu, an Associate Professor at the Central University of Finance and Economics in Beijing, Prof Wilma Viviers, Mr Martin Cameron and Prof Ludo Cuyvers contributed to a paper titled 'Identifying export opportunities for China in One Belt and One Road: Policy implications for export promotion'. The paper was presented by Prof Dahai Fu at the International Sino-Brazilian seminar on economy and development in Brazil from 23–24 November 2018.