Halil Tokel:  Thanks for your comments and questions. About a month and a half ago D-8 Civil Aviation Committee had a meeting with civil aviation authorities of the eight countries and we participated  as  Turkish Airlines Technics division. I made a presentation there. During that presentation I had three suggestions.

The first of these proposals is that the eight authorities should be merged as single authority, the same as in Europe, the aeronautical authority. As a start, let’s THY Technics coordinate D-8 civil aviation committee in Istanbul. So a year later it shuld be transferred to Iran. We alltogetre come with a solution model and that eight civil aviation committees speak the same language with the same common words. If one confirms something, the others will automatically approve. This study will be resulted hopefully.

Second, let’s coordinate the eight countries’ aviation industries. Nobody is demanding and there are no suggestions. I said, let us take over as Turkish Airlines Technics.  We will coordinate the associations, institutions, public unis there  and  we will organize the processes  maybe the fair organizations and  we will go and they will come. Perhaps we will see a product we need. They will see our products here. At least two companies will set up a company  and will invest. We need to provide this opportunity.

One of our third recommendations was to bring the aircraft maintenance companies of these eight countries under an umbrella. And they support each other, parts needs, aircraft maintenance needs will be procured with priority. There was an Association proposal which was accepted. We will coordinate the Association.

After achieving all of these proposals one further step is participation in  Turkey’s big projects  with selected members like Pakistan,  Indonesia, Turkey and Malaysia. We can participate in their projects. For example, we can initiate  a new passenger plane project with a capacity of 150 passengers. It may be thought of a standing committee where these issues will be discussed for a continuous exchange of views and ideas.  We can do this on the TAI side. TAI also may take responsibility in this regard.  For example, in Uzbekistan, there is a passenger plane factory in Tashkent. All the passenger aircraft of the Russians were built there. This is also on account of our opportunity.

Levent Ağaoğlu: The plane of Indonesia does not have a flight license in the world, it is flying in Indonesia only. May it fly in Turkey as well?

Halil Tokel:  Definitely flies.

Levent Ağaoğlu:  The seats are very expensive  with our existing aircrafts  and if it  is cheaper with Indonesian small aircraft we may use themfor domestic flights and sell THY’s big planes abroad? Can we not sell them abroad?

Halil Tokel: What Turkey is lacking are the type of regional aircrafts. Our lowest aircraft passenger capacity number is 150, but we also need a passenger airplane for 19 people,  for 40 people, we even need for 11 people. We need a 70-seat plane as well. These are abvailable in other countries. Now we are trying to produce regional planes. Indonesia has produced and w emay buy them  from Indonesia who is our brother.

Levent Ağaoğlu: We can visualize D 8 in that way. Like The Common Trade Union, like The Common Customs Union, like Common Aviation Union.

Halil Tokel: You said something very nice  that the eight countries move to single currency. That would be fantastic. But we can codify the rules in aviation between the members of D-8 if we can organize the companies with the same functions under single roof.

Source: ASAM Conference by Halil Tokel (Technical Advisor of THY and TAI) on 17,02,2018  in Istanbul

1. Why should barter be made between D8 countries?
2. What will be the gains of D8 countries if Barter is made?
3. How the system will operate as customs and legislation are the most important problems and issues.
4. (How) Each country has different customs legislation. For example, how the traded goods will pass from Turkey to Malaysia, from Nigeria to Pakistan when arrived at the the customs? Legislational changes are very important to ease the comfortable passage of the goods from the customs.
5. (When):2019 will be a very important year for the whole world. We can talk about the possibility of war peaking. After sharing all the trump cards in 2019, we can see that they will establish a new world order by 2025. What should we do in these tough conditions?

Prof Mehmet Akif Okur; Very important questions Levent Bey, I consult with friends that I think may contribute to the subject. We will find out experts support as described below. Namely:

1. We need an economist who knows the quality and potential of internal trade between D8 countries. The main items are what the country is buying, what it sells? Will the Barter among the D8 countries change the direction of some of this commercial flow by offering more attractive opportunities than trade with third countries, or will it develop new trade opportunities by activating some decentralized capacities? For data and comments on these questions, we need the help of an academician and the economy bureaucracy, which is particularly focused on this field. We should test the evaluations of the economist academician with the experience and data of the bureaucracy / bureaucrat. We have to interpret the bureaucracy’s data to the economist.
2. We need a good trade lawyer who knows Barter for legislation. Because the legislation, the technical dimension is an important issue. What kind of a law and regulations are needed? What laws will be required to comply with the general trade legislation of the Barter legislation to be created? For the general framework, we can look at the legislation of successful countries to the barter in the world. For details, we need to bring together a commercial lawyer with an economist-bureaucrat duo who I mentioned above. It would be appropriate to point out the text from this triangle to a name from the bureaucracy, which is also a practice of writing legislation.
3. The third bet is about the diplomatic aspect of the matter. Is it necessary to propose a joint legislation to the D8 countries, or it is necessary to seek a consensus for a common system by identifying specific principles and inviting the negotiations? Some countries may wish to enter the system in some commercial items, enter late, enter into legislation with certain differences. This is a common issue in the discussions on trade agreements. Considering such possibilities, a diplomatic strategy will be required. In my opinion, the first thing that should be done for a healthy start is to call these expertise rings as people and institutions. Because, if this frame is basic and we try to sit and prepare it, it is highly probable that we will make mistakes that will shake the image of the project.

Levent Ağaoğlu; I am grateful, you have opened the way deep and wide. Since there is no customs union, we will have to work in individual countries. If we can find the experts, this will be done.

Prof Mehmet Akif Okur; I would like to thank you, Mr. Levent, if you had not put the concrete questions before us, it would not be possible to think about the frame.

Prof Mehmet Akif Okur; This work was done in 2013. If trade between the D8 countries was liberalized, they concluded that the trade between these countries would increase by 87%. However, there is no study on about barter. In order to run barter system within D8, clear data on trade items of the countries are needed. This is probably not available.

Prof Mehmet Akif Okur; It may be useful to consult with the Commercial Lawyer and the bureaucrat duo academicians who will help with the legislation writing about the barter.

For months, Europeans have been discussing the implementation of the so-called “Vehicular ad hoc network (VANETs) icular, a sort of icular barter” system for the purpose of penetrating the American sanctions. The aforementioned mechanism envisions the exchange of oil and gas exports between Iran and Iran’s EU trade and services.

Levent Ağaoğlu;

D8 Share In Turkey’s Exports (2017):

• Indonesia  9.2%
• Egypt      9%
• Malaysia   6.8%
• Pakistan   6.5%
• Iran        5.8%
• Nigeria                 5.5%
• Turkey                   4.5%
• Bengladesh 3%

Source: Trademap

Unfortunately we are at the bottom, although we are the initiator of D8.

Prof Mehmet Akif Okur; Our total export to D8 is almost as much as we do to France. We are not followers of our claims ..

Prof Mehmet Akif Okur; I am sorry for the result.

Prof Mehmet Akif Okur; In order to change this balance with Barter;

1. These countries need market research and analysis based on countries looking for answers to the question
2. When the existing potentials are determined, the role of the barter can be determined and the interlocutors must be reached and explained

It is not enough to install the system and wait for the customer. It is necessary to explore commercial potentials and to actively engage

It is necessary to work integrated with trade attaches in these countries. There is also a need for trade attaches to be equipped with active and strong staff.

Prof Mehmet Akif Okur; Special taxation-related incentives for the use of Barter in international trade between D8 can accelerate the establishment of the first commercial links. Once these connections are established, incentives can be removed gradually

Levent Ağaoğlu: In the current situation, D8 is an organization. As Turkey, we can inject the dynamism of entrepreneurship into this structure.

Levent Ağaoğlu: EU mechanisms are always being run with incentives. D8 can activate our common denominator.

Prof Mehmet Akif Okur; There is a need for a method that can work. Regarding the Barter system, as far as I can understand, the inclusion of the first critical threshold firms in the pool. To include companies from eight different countries into the pool;

1. There is a need for a source of information that will enable them to evaluate the law they are subject to in the countries where they operate and the firms that will apply / be invited to pool.
2. There is a need for the legal procedures to be determined during the dispute and to be legally guaranteed.
3. The next stage is the process of contact with the companies and the incentive to join the pool

Levent Ağaoğlu; Since Turkish Barter companies have been creating a pool that has been running without leakage for several decades, it offers the right method in an orderly manner. For a, b, c, we need to be proactive.

Prof Mehmet Akif Okur; Hopefully. Since my experience in trading life is almost in the affair, my thoughts and solutions are limited. The road map that the experience points to is safer and more important

Source: Interview with Prof Mehmet Akif Okur.