A table showing the current status of those countries that have ratified the Cape Town Convention and its Aircraft Protocol is maintained by UNIDROIT, the legal depositary of these instruments.

AWG is committed to the global ratification and effective implementation of the Cape Town Convention. It consults with governments around the world on these matters, including on the declarations to be made and the relationship between the Cape Town Convention and national law.

By effective implementation, AWG means that qualifying declarations under the OECD Aircraft Sector Understanding have been made and that the Cape Town Convention has the force of law in Contracting States, and, to the extent of any conflict, prevails over other law in such States.

AWG and its legal advisory panel assess whether Contracting States have made the qualifying declarations. While AWG also assesses whether Contracting States have otherwise effectively implemented the Cape Town Convention, AWG is not expressing herein a view as to effective implementation by those States.

AWG has prepared a comprehensive document (Implementation Resource Materials), which is regularly revised, relating to the ratification and implementation of the Cape Town Convention. This document provides a general overview and chapter-by-chapter summary, sets out the system of declarations and makes specific recommendations in relation to those declarations, and provides a model ratification text and model implementing legislation.

AWG has made significant efforts, including through its commissioning of third party experts, to assess and quantify the economic benefits of the Cape Town Convention.

In 1988, a first Economic Impact Assessment was prepared under the joint auspices of New York University and INSEAD (Paris). That document was commissioned by AWG, IATA, and ICAO, and helped guide the development of the treaty.

The Cape Town Academic Project will establish a platform and forum for further assessing the economic impact of the Cape Town Convention, developing materials that may include guidelines for applied assessment.

In 2009, AWG commissioned an updated independent study addressing the economic benefits of the Cape Town Convention. The new study was narrower in scope. It focused exclusively on airline benefits and strictly assumed application of the insolvency rule found in Protocol, Art. XI, Alternative A.

In December 2010, AWG commissioned an independent study assessing the economic benefits of the ratification of the Cape Town Convention in the United Kingdom AWG has submitted this study to the UK government.

These studies have confirmed the substantial and widely shared economic benefits of ratification and effective implementation of the Cape Town Convention. Such benefits are predicated on a Contracting State making a specific set of economically-oriented declarations, that is, the ASU qualifying declarations, and ensuring that the Cape Town Convention prevails over inconsistent national law.

The Cape Town Convention is not a treaty that a country simply decides to ratify or not. Rather, a number of choices need to be made at the time of ratification. These choices – declarations – are an integral part of the treaty system.

Most importantly, certain declarations are specifically designed to reduce transaction risk, and, thus, produce economic benefits. These declarations have been identified in the OECD Aircraft Sector Understanding as qualifying declarations.

AWG encourages all countries to make such qualifying declarations. AWG has prepared a matrix of recommended declarations. AWG and its legal advisory panel also prepare charts summarising and comparing all declarations made, including on the critically important topic of insolvency, Protocol, article XI.

AWG also encourages all countries to ensure that any declaration under Convention Article 39 restricts preferred non-consensual liens / rights to those that are customary. In no event (as prevented by the treaty) may such a declaration purport to expand such liens / rights beyond those under current law. See Goode, Official Commentary at para 4.265.

This page summarizes recent (within the last six months) developments ratifications of the Cape Town Convention or changes in existing declarations made by Contracting States

Important Note 1: For more complete and official information on relating to the ratification, see materials published by UNIDROIT When the relevant Contracting State has made a set of qualifying declarations under the 2011 ASU, such will be noted. AWG maintains a list of Contracting States that have made qualifying declarations.. AWG is not expressing a view on whether such States have effectively implemented the Cape Town Convention, which is a further condition to eligibility for the Cape Town discount under the 2011 ASU.

Important Note 2: When the relevant Contracting State has made a set of qualifying declarations under the 2011 ASU, such will be noted. AWG maintains a list of Contracting States that have made qualifying declarations. AWG is not expressing a view on whether such States have effectively implemented the Cape Town Convention, which is a further condition to eligibility for the Cape Town discount under the 2011 ASU.

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Turkey: The Convention and the Aircraft Protocol will enter into force for Turkey on 1 December 2011. Turkey has made the qualifying declarations under the 2011 ASU.

Kazakhstan: Subsequent declarations to the Convention, and the Aircraft Protocol, will enter into force for Kazakhstan on 1 October 2011. When effective, Kazakhstan will have made the qualifying declarations under the 2011 ASU.

Russia: The Convention and the Aircraft Protocol entered into force for Russia on 1 September 2011. Russia has not made the qualifying declarations under the 2011 ASU. The Russian government is currently considering amendments to the Russian implementing legislation which, if agreed, would result in improvements in the declarations.

Latvia: The Convention and the Aircraft Protocol entered into force for Latvia on 1 June 2011. Latvia has not made the qualifying declarations under the 2011 ASU.

The European Community ratified the Cape Town Convention in 2009. On that occasion the AWG issued a public statement.

That ratification action has resulted in the commencement of ratification processes in a number of EU Member States.

To date, Ireland, Luxembourg, Malta, and the Netherlands (but only in respect of certain offshore territories) have ratified the Cape Town Convention.

Competence between the EU and Member States is divided as regards the Cape Town Convention. Therefore, special care is required when EU Member States make declarations.

UNIDROIT has issued a seminar report on that matter. Annex III of the report summarises the key conclusions regarding declarations within the competence of Member States and the EU respectively. These conclusions are consistent with a special clause, article 4, in the ASU qualifying declarations.

AWG representatives have written a paper, ''Cape Town Treaty in the European Context: the Case for Alternative A, Article XI of the Aircraft Protocol'. In line with the above-mentioned competence rules, EU Member States would need to give effect to this article through national law.

AWG has intensified activities in support of ratification by EU Member States, focusing on declarations and the required changes to national law. One example is the set of comments submitted by AWG to the government of the United Kingdom in connection with its consultations (Call for Evidence) regarding ratification. The results of that consultation were overwhelmingly positive.

The Cape Town Convention established an International Registry (International Registry) in which interests in aircraft equipment must be registered in order to establish their priority. The International Registry is an integral part of the Cape Town Convention. Over half of the world's financing and leasing transactions for new aircraft equipment are registered in the International Registry.

AWG has prepared a series of schematics depicting the International Registry Aviareto, the Registrar of the International Registry, has prepared an overview presentation on the International Registry.

AWG chairs the International Registry Advisory Board (IRAB) set up by Aviareto, the operator of the International Registry. AWG also serves as an observer to the Commission of Experts of the Supervisory Authority of the International Registry CESAIR, that provides advice to ICAO, the Supervisory Authority.

Supplementing the terms of the Cape Town Convention, use of the International Registry is subject to Regulations and Procedures issued by Supervisory Authority.

IRAB is currently concentrating its advice on the contemplated next generation of the International Registry (Generation II). These will be enhancements, introduced in three phases (2011, 2012, and 2013), permitting more efficiency by streamlining registrations on multiple aircraft objects and reflecting the dynamics of transaction closings.

AWG is pleased that ICAO has agreed to renew Aviareto's contract to operate the International Registry for an additional period of five years, through 2016. This decision, recognising the excellent work done to date by Aviareto, will provide further stability to the International Registry system.

The OECD Aircraft Sector Understanding establishes the basic rules for the provision of export credit.

On 1 February 2011, the current version of the ASU (the 2011 ASU) entered into force. The 2011 ASU, like its predecessor 2007 version, permits a reduced fee or interest rate (as applicable) where the Cape Town Convention applies to a transaction.

More specifically, the 2001 ASU permits a Cape Town discount provided that a set of qualifying declarations has been made and the Cape Town Convention is effectively implemented in national law. The OECD maintains a list of countries that have been determined through OECD procedures to meet the foregoing standard. AWG believes select other countries should be added to this list and are consulting with relevant parties in that regard.

Under the 2011 ASU, the maximum Cape Town discount is 10% off the otherwise applicable up front fee or per annum spread.

The Cape Town discount endorses the long-standing view of AWG that application of the Cape Town Convention reduces transaction risk, and, thus, should be reflected in the terms of credit.

AWG provides it views to the OECD on eligibility for the Cape Town discount under the 2011 ASU.

AWG supervises the work of its Legal Advisory Panel on the relationship between the Cape Town Convention and contractual practices. By contractual practices, we mean contractual provisions, registration of interests, and legal opinion practice. The work of the Panel seeks to enhance informed and efficient contracting under the Cape Town Convention.

Building on prior publications, the Panel has published a comprehensive Practitioner's Guide designed to provide practical assistance to practitioners in working with the Cape Town Convention. It will be updated periodically.

Comments on the Practitioner's Guide – or on legal developments in any country relating, directly or indirectly, to the Cape Town Convention – should by sent to the AWG secretary general: jeffrey.wool@awg.aero (with the following in the subject line: 'Cape Town Convention – {insert country} / legal developments).

Oxford University and the University of Washington have commenced a joint Cape Town Convention Academic Project, two elements being undertaken, in part, under the joint auspices of UNIDROIT and the Project. ICAO is cooperating in support of this project. AWG is the founding sponsor.

The purpose of the project is to facilitate the academic study and assessment of the Cape Town Convention with a view towards enhancing the understanding and effective implementation of the treaty and advancing its aims.

There are a number of activities through which the project will advance these objectives.

AWG will report on the activities, which include electronic access to a digitalised and searchable database of comprehensive documents and materials, a journal, conferences, teaching materials, and law and economic assessment, as they relate to the Cape Town Convention (including all protocols).

Below is a list of upcoming and recent events addressing the Cape Town Convention with which AWG is connected:

Upcoming Events:

Advanced Participatory Regional Seminar on Cape Town Convention & Aircraft Protocol, Sao Paulo, Late 2011

This seminar will cover Cape Town Basics, Ratification & Implementation Issues, Legal Developments & Registration & amp;Transaction Practices. Focus: Latin American Region. Details are expected to be available in September.

Recent Events:

Advanced Participatory Regional Seminar on Cape Town Convention & Aircraft Protocol, 25 January 2011, Dublin. This seminar covered Cape Town Basics, Ratification & Implementation Issues, Legal Developments & Registration & Transaction Practices. Detailed materials were prepared in connection with this seminar.

Cape Town Convention and its Aircraft Protocol – Assessing and Advancing Ratification, 9/10 November 2010, Rome Italy. This forum focused on ratification issues in the European Union, the Middle East and Africa. Detailed materials were prepared in connection with this forum.