The Asia-Pacific Economic Cooperation (APEC) and government representatives from the organization’s 22 member economies held a Policy Dialog on “Secured Finance Reform for Food Security” in Lima, Peru. The purpose of the Policy Dialog was to educate government officials of the challenges mobilizing private capital for agriculture in the APEC region, and the available legal instruments to increase production and enhance food security.
AEM was asked to present during the Policy Dialog and discuss how the international commercial treaty known as the MAC Protocol will improve food security and usher in sustainable agricultural productivity gains across the Asia-pacific region.
At its core, the MAC Protocol will make it easier and less costly to finance agriculture equipment in markets that ratify the treaty. The treaty establishes a clear and transparent process in determining legal recourse if a debtor defaults on payment obligations and provides the creditor with a set of remedies including repossessing the MAC equipment, the ability to sell or release it, export it, or collect income or profits arising from the management of the equipment’s use.
These security rights will be registered in an electronic international registry which is accessible 24 hours a day and provides transparency and ease of reference for creditors and courts on determining legal priority. These clear and defined protections reduce uncertainty and risk for all parties involved, thus enabling and encouraging improved availability, terms, and cost of financing.
Given the interest in secured transactions reform and the MAC Protocol, APEC will be holding a three-day technical workshop in 2025 and inviting senior government officials from 22 member economies to participate. AEM will represent industry and continue advocating for APEC’s 22 member economies to ratify the treaty.
To learn more about the MAC Protocol, please contact AEM’s senior advisor, global public policy Alexander Russ aruss@aem.org or (202) 898-9006.
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