MAC Working Group
Representing companies operating in the agricultural, construction and mining equipment manufacturing and financing sectors for the implementation of an additional protocol to the Cape Town Convention (2001)
THE MAC PROTOCOL
AN INTERNATIONAL TREATY ASSISTING THE FINANCING AND ACQUISITION OF HIGH VALUE MINING, AGRICULTURAL AND CONSTRUCTION EQUIPMENT
The International Institute for the Unification of Private Law (UNIDROIT) is currently developing an international treaty that will create an international registration system for security interests in high value mining, agricultural and construction (MAC) equipment. The treaty will increase access to finance for users of MAC equipment worldwide, and in doing so is predicted to significantly increase the global export of MAC equipment.
The treaty (MAC Protocol) is being developed as an additional Protocol to the Cape Town Convention on International Interests in Mobile Equipment, which already has a proven track record in delivering significant cost savings to manufacturers, intermediaries and end-users in other industries. The Cape Town Convention’s Aircraft Protocol has allowed companies in countries that have ratified it to acquire airplanes at a historically low cost. The extension of the Cape Town Convention to the mining, agricultural and construction fields will give end-users better access to low-cost financing, while also opening new markets for equipment manufacturers.
The MAC Protocol will apply to types of high value MAC equipment as identified by the Harmonized Commodity Description and Coding System (HS System). The Annexes to the MAC Protocol will list the HS System codes that it covers, and any MAC equipment traded under those codes will be covered by the Protocol. Currently, there are 36 HS System codes listed in the draft MAC Protocol, which cover US $117 billion worth of global exports of MAC equipment. The MAC Protocol will undergo intensive intergovernmental negotiations over several sessions in 2017, and should be created in 2018. However, to ensure that your company’s interests are considered, it is important to become involved in the process now.
Private sector input in to this project from companies who manufacture, sell, finance, purchase, lease and use MAC equipment is crucial for its success. Private sector consultation is facilitated by the MAC Protocol Working Group, which is an independent body of private sector stakeholders which represents and communicates private sector views.