Cape Town Treaty

Not to be confused with Cape Town Agreement.

Cape Town Treaty

Cape Town Convention on International Interests in Mobile Equipment
Parties   Signatories   Parties, also covered by EU's accession   Signatories, also covered by EU's accession   covered by EU's accession
Signed	16 November 2001
Location	Cape Town, South Africa
Effective	1 March 2006
Condition	3 ratifications
Parties	84
Depositary	International Institute for the Unification of Private Law
Citations	2307 U.N.T.S. 285
Languages	English, Arabic, Chinese, French, Russian and Spanish
Full text
Convention on International Interests in Mobile Equipment at Wikisource

The Cape Town Convention on International Interests in Mobile Equipment, or Cape Town Treaty, is an international treaty intended to standardize transactions involving movable property. The treaty creates international standards for registration of contracts of sale (including dedicated registration agencies), security interests (liens), leases and conditional sales contracts, and various legal remedies for default in financing agreements, including repossession and the effect of particular states' bankruptcy laws.

Four protocols to the convention are specific to four types of movable equipment: Aircraft Equipment (aircraft and aircraft engines; signed in 2001), railway rolling stock (signed in 2007), space assets (signed in 2012) and "Mining, Agricultural and Construction Equipment" (signed in 2019). The aircraft Protocol entered into force in 2006, and the railway rolling stock Protocol entered into force in 2024. ^[1] The others are not yet in effect.

The treaty resulted from a diplomatic conference held in Cape Town, South Africa in 2001. The conference was attended by 68 countries and 14 international organizations. 53 countries signed the resolution proposing the treaty. ^[2] The treaty came into force on 1 March 2006, ^[3] and has been ratified by 57 parties. The Aircraft Protocol (which applies specifically to aircraft and aircraft engines) took effect on 1 March 2006 when it was ratified by 9 countries: Ethiopia, Ireland, Malaysia, Nigeria, Oman, Panama, Pakistan, and the United States.

Signatures and ratifications

As of 2024, the convention has been ratified by 87 states as well as the European Union. Most of those parties are also party to the Aircraft protocol. The railway rolling stock Protocol has been ratified by four countries (Gabon, Luxembourg, Spain and Sweden), as well as the European Union and came into effect in March 2024. The space assets Protocol has been acceded to by 1 country and remains not in force. An overview of the status of the treaty and protocols is shown below:

Instrument	Signature	Location	Entry into force	Signatures	Ratifications (required for entry into force)
Convention	16 November 2001	Cape Town	1 March 2006	28	88 (3)
Aircraft Protocol	16 November 2001	Cape Town	1 March 2006	23	86 (8)
Railway Rolling Stock Protocol	23 February 2007	Luxembourg	8 March 2024	12	7 (4)
Space Assets Protocol	9 March 2012	Berlin	-	4	1 (10)
Mining, Agricultural and Construction Equipment (MAC)	22 November 2019	Pretoria	1	6	1 (5)

European Union

The European Union joined the convention and the Aircraft Protocol as a Regional Economic Integration Organization. On the subject of the convention, both the Member states of the European Union and the Union itself have competence: e.g. while the substantive law regarding insolvency is regulated by the states, the conflict of law-rules (which county has jurisdiction etc.) is regulated by the European Union. According to the Government of the Netherlands the acceptance of the European Union in a member state which itself is not a party to the convention has no practical consequences. ^[4] The European Union ratified the Luxembourg Rail protocol in December 2014 as a Regional Economic Integration Organization on the same basis.

Protocols

Aircraft Protocol

  Parties

  Signed

  Parties, also covered by EU's accession

  Signatories, also covered by EU's accession

  covered by EU's accession

Aircraft Protocol

The aircraft Protocol (officially: Protocol to the Convention on International Interests in Mobile Equipment on matters specific to aircraft equipment) was signed immediately with the treaty and the only protocol currently entered into force. It applies to aircraft which can carry at least eight people or 2750 kilograms of cargo, aircraft engines with thrust exceeding 1,750 pounds-force (7,800 N) or 550 horsepower (410 kW), and helicopters carrying five or more passengers. The International Registry of Mobile Assets established to record international property interests in the aircraft equipment covered by the treaty is located in Ireland. Mediation cases for leasing disputes are to be heard in the High Court of Ireland. ^[5] As of 2022, the protocol has 85 contracting parties, which includes 84 states and the European Union.

State	Date of Ratification/ Accession	Comments
Afghanistan	25 July 2006
Albania	30 October 2007
Angola	30 April 2006
Argentina	10 January 2018
Australia	26 May 2015
Bahrain	27 November 2012
Bangladesh	15 December 2008
Belarus	27 September 2011
Benin}	20 March 2025
Bhutan	4 July 2014
Brazil	30 November 2011
Burkina Faso	8 September 2017
Cameroon	14 April 2011
Canada	21 December 2012	New Brunswick: effective 1 July 2016 Yukon: effective 1 October 2014 others: 1 April 2013
Cape Verde	26 September 2007
China	3 February 2009	Excluding   Hong Kong   Macao
Colombia	19 February 2007
Congo	13 March 2013
Democratic Republic of Congo	6 May 2016
Costa Rica	8 August 2018
Côte d'Ivoire	1 March 2016
Cuba	28 January 2009
Cyprus	20 July 2023
Denmark	26 October 2015
Egypt	10 December 2014
Ethiopia	21 November 2003
European Union	28 April 2009	Only as far as it has competency over subjects of the convention/ protocol. Not applicable to Denmark
Fiji	30 May 2012
Gabon	4 April 2017
Ghana	20 December 2018
Iceland	23 June 2020
India	31 March 2008
Indonesia	16 March 2007
Ireland	23 August 2005
Jordan	31 August 2010
Kazakhstan	1 June 2011
Kenya	13 October 2006
Kuwait	31 October 2013
Kyrgyzstan	13 May 2021
Latvia	8 February 2011
Luxembourg	27 June 2008
Madagascar	15 December 2008
Malawi	10 April 2013
Malaysia	16 January 2014
Malta	1 October 2010
Mexico	31 July 2007
Moldova	19 February 2019
Mongolia	19 October 2006
Mozambique	18 July 2013
Myanmar	3 December 2012
Namibia	23 July 2018
Kingdom of the Netherlands	17 May 2010	Not European Netherlands Only for   Aruba   Curaçao   Sint Maarten   Caribbean Netherlands
New Zealand	20 July 2010
Niger	17 November 2022
Nigeria	16 December 2003
Norway	20 December 2010
Oman	21 March 2005
Pakistan	22 January 2004
Panama	28 July 2003
Paraguay	19 December 2018
Qatar	8 January 2020
Romania	30 March 2018
Russia	25 May 2011
Rwanda	28 January 2010
San Marino	9 September 2014
Saudi Arabia	27 June 2008
Senegal	9 January 2006
Sierra Leone	26 July 2016
Singapore	28 January 2009
South Africa	18 January 2007
Spain	27 November 2015
Swaziland	17 November 2016
Sweden	30 December 2015
Tajikistan	31 May 2011
Tanzania	30 January 2009
Togo	1 December 2011
Turkey	23 August 2011
Uganda	11 October 2024
Ukraine	31 July 2012
United Arab Emirates	29 April 2008
United Kingdom	27 July 2015	Extended to Cayman Islands, Gibraltar and Guernsey (2015), and the Isle of Man and Bermuda (2017)
United States	28 October 2004
Uzbekistan	31 January 2018
Vietnam	17 September 2014
Zambia	7 September 2020

Railway Rolling Stock

The Railway Rolling Stock Protocol, or Luxembourg Rail Protocol, officially the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Railway Rolling Stock was adopted on 23 February 2007 at a diplomatic conference in Luxembourg and applies to railway rolling stock (broadly defined as "vehicles movable on a fixed railway track or directly on, above or below a guideway"). It came into force on 8 March 2024.

The protocol establishes an international registry located in Luxembourg at which all international interests under the protocol will be registrable. The registry will also issue unique identifiers for rolling stock on request. Regulis S.A., a subsidiary of SITA, was appointed in November 2014 to act as Registrar.

The protocol required ratification by 4 countries, together with a certification by the secretariat to the Supervisory Authority that the registry is fully operational, in order to enter into force. Currently, it has been signed by France, Gabon, Germany, Italy, Luxembourg, Mozambique, South Africa, Spain, Switzerland, Sweden, the UK as well as the European Union, while it has been ratified by the European Union and 6 states: Gabon, Luxembourg, Paraguay, South Africa, Spain and Sweden.

Space Assets

The Space Assets protocol, or Berlin Space Protocol ^[6] (officially Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Space Assets) was concluded on 9 March 2012 and requires 10 ratifications before entry into force. ^[7] The protocol applies to objects functioning in space like satellites or satellite parts. ^[8] The convention was strongly opposed by the satellite industry, claiming that it would lead to increased bureaucracy and "make the financing of new satellite projects more difficult and expensive". ^[9] The convention has been signed by 5 countries (Burkina Faso, Germany, Saudi Arabia, United States and Zimbabwe), but no country has ratified it.

Mining, Agricultural, and Construction (MAC) Equipment

On 22 November 2019, a fourth protocol to the convention was adopted to extend the convention's framework to mining, agricultural, and construction (MAC) equipment, named Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to mining, agricultural, and construction equipment. ^[10] The protocol was signed by 4 states (Congo, Gambia, Nigeria and Paraguay) upon its adoption and requires 5 ratifications before entry into force (provided the registry is operational then). On 1 October 2020, the United States of America signed the MAC Protocol and in 2022 the European Union bringing the total number of signatories to 6 ^[11]

References

1. "UNIDROIT and OTIF announce Entry into Force of Luxembourg Rail Protocol". International Institute for the Unification of Private Law (UNIDROIT).
2. "Diplomatic Conference to adopt a Mobile Equipment Convention and an Aircraft Protocol, Cape Town, South Africa, 29 October – 16 November 2001". International Institute for the Unification of Private Law (UNIDROIT). Archived from the original on 16 April 2013. Retrieved 22 November 2006.
3. "The Cape Town Convention - Now coming into force" (PDF). Hogan Lovells. 1 March 2006. Retrieved 23 July 2021.
4. "32 227 (R 1904) Verdrag inzake internationale zakelijke rechten op mobiel materieel en Protocol bij het Verdrag inzake internationale zakelijke rechten op mobiel materieel betreffende voor luchtvaartmaterieel specifieke aangelegenheden; Kaapstad, 16 november 2001". Government of the Netherlands (in Dutch). 27 November 2009. Retrieved 13 March 2012.
5. "Aircraft leasing disputes to be heard in Dublin". Sunday Business Post. 11 May 2008.^{[ permanent dead link ]}
6. "Pressemitteilung: Berliner Weltraumprotokoll verabschiedet". Ministry of Justice (Germany) (Press release) (in German). 9 March 2012. Archived from the original on 10 March 2012. Retrieved 11 March 2012.
7. "text of the draft Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Space Assets" (PDF). UNIDROIT. June 2011. Archived from the original (PDF) on 18 October 2011. Retrieved 13 March 2012.
8. "Draft Final Provisions capable of embodiment in the draft Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Space Assets, with Explanatory Notes" (PDF). UNIDROIT. June 2011. Archived from the original (PDF) on 18 October 2011. Retrieved 13 March 2012.
9. "Global Satellite Industry denounces UNIDROIT Protocol". Satellite Industry Association (Press release). SpaceRef.com. 9 March 2012. Retrieved 11 March 2012.
10. "STUDY LXXII K – DEVELOPMENT OF A FOURTH PROTOCOL TO THE CAPE TOWN CONVENTION ON MATTERS SPECIFIC TO MINING, AGRICULTURAL AND CONSTRUCTION EQUIPMENT". UNIDROIT. Archived from the original on 21 September 2018. Retrieved 21 September 2018.
11. "Secretary Michael R. Pompeo at the Mining, Agriculture, and Construction Protocol Signing Ceremony". United States Department of State. Retrieved 17 December 2020.

External links

• Treaty text and ratifications
• Aircraft protocol text and ratifications
• Railway rolling stock protocol text and ratifications Archived 29 July 2018 at the Wayback Machine
• Space Assets protocol text, signatures

Aircraft Protocol

• International Registry of Mobile Assets
• Charles W. Mooney Jr., "Contract Practices under the Cape Town Convention," The Legal Advisory Panel of the Aviation Working Group, Cape Town Papers Series, Volume I, 9 Uniform Law Review Issue 3, August 2004, Pages 703–04, ISBN   90-77801-01-4.
• Charles W. Mooney Jr., Marek Dubovec, William Brydie-Watson, "The mining, agricultural and construction equipment protocol to the Cape Town Convention project: The current status," 21 Uniform Law Review 2–3, August 2016, Pages 332–60

Luxembourg Rail Protocol

• Rail Working Group