Prof. Ignacio Tirado, the Secretary General of the International Institute for the Unification of Private Law (UNIDROIT), recently visited AEM’s Washington, D.C. office to strategize with staff and met virtually with member companies to provide them with an update on the current status and future of the MAC Protocol.
The MAC Protocol is a treaty that will provide an international legal framework for the financing of mining, agriculture and construction equipment. Once ratified, the treaty will decrease financing costs for selling and leasing equipment to customers in many markets across the globe.
The global market for mining, agricultural and construction (“MAC”) equipment accounts for approximately $200 billion annually. Yet, the financing of MAC equipment remains challenging in many parts of the world. Financial institutions are unwilling to provide credit to companies in the MAC sectors to purchase or lease equipment, due to uncertainty created by domestic laws, the possible movement of assets across borders, or challenges in enforcing their rights upon default or insolvency. The MAC Protocol will help overcome these obstacles and allow financiers to provide credit in countries where they are currently unable to do so, and at lower costs, especially in many developing nations.
Earlier that same day, AEM met with Assistant Secretary of Commerce Industry and Analysis Grant Harris to discuss the Biden Administration’s position on the MAC Protocol and to demonstrate the industry’s support for U.S. government involvement in making the international treaty a financial success for U.S. manufacturers.
Eighty-three countries are signatories of the Cape Town Convention and are eligible for the MAC protocol to go into effect if they ratify the treaty. AEM is pushing for ratification in key markets across the globe and is convening like-minded organizations to help with international outreach. AEM encourages its members to share the above presentation with their colleagues working in equipment financing, leasing, and international sales.
To request a copy of the presentation or learn more about the MAC Protocol, please contact AEM Senior Advisor of Global Public Policy Alex Russ at aruss@aem.org.
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