Common use of Failure to Lead Clause in Contracts

Failure to Lead. It is critical to remember that the TPP is a multi-lateral agreement intended to create high quality rules and market access across its 12 members. However, outside of TPP, other member countries would – and indeed are – already negotiating and implementing bilateral agreements without waiting for the United States to complete action. While legally TPP would only go into full effect if the United States ratifies the agreement, other countries will move forward with their trade capabilities regardless of whether or not the United States decides to ratify the agreement. U.S. failure to enact TPP will not see our trade situation stay the same, but will lead to declining net exports and market share in important markets. Fruits and Nuts: Florida’s fruit industry leads all other agricultural industries in the state with more than $2.4 billion in cash receipts in 2014. TPP passage is expected to increase fruits and nuts cash receipts by $59 million per year, which is driven by a $52.5 million per year increase in direct exports to TPP countries.  Japan’s avocados, strawberries, blueberries, and watermelon tariffs as high as 17 percent will be eliminated xxxxxxxxxxx.Xxxxxx tariffs from 16-32 percent will be eliminated in 6-8 years. Japan’s remaining fresh fruit tariffs as high as 17 percent will be eliminated within 11 years.  Malaysia’s melons and strawberry tariffs as high as 30 percent will be eliminated immediately. Grapefruit and lemon tariffs of 5 percent will be eliminated immediately.  Vietnam’s strawberry tariffs as high as 30 percent will be eliminated within 3 xxxxx.Xxxxxx tariffs of 20 percent will be eliminated in 4 years. Grapefruit tariffs of 40 percent will be eliminated in 3 years. Fresh lemon tariffs of 20 percent will be eliminated in 3 years. Beef: Florida’s cattle industry produced $867.8 million in cash receipts in 2014. TPP passage is expected to increase beef cash receipts by $7.9 million per year, which is driven by a $7.3 million per year increase in direct exports to TPP countries.  Japan will eliminate 74 percent of duties on beef imports within 16 years. This includes reducing a tariff of 38.5 percent to 9 percent within 16 years on fresh, chilled, and frozen beef cut. The World Trade Organization safeguard will also be replaced by the TPP-wide safeguard, which is predicted to be less trade-limiting.  Japan’s beef offal tariffs as high as 21.3 percent will be eliminated in 6-16 years.  Malaysia’s tariffs on imports of beef will be eliminated.  Vietnam’s tariffs as high as 34 percent on beef, will be eliminated in 3-8 years.  New Zealand’s tariffs as high as 5 percent on beef, will be eliminated immediately. Processed Food and Fish: In 2014, Florida exported $362.7 million of processed foods to TPP countries. As of 2012, there were 26,588 employees in Florida’s food manufacturing sector, with the largest subsector being fruit and vegetable preserving at 28% of food manufacturing.  Japan’s orange juice tariffs as high as 29.8 percent will be duty-free in 6-11 years. Grapefruit juice tariffs as high as 29.8 percent will be eliminated in 6-8 years. Essential citrus fruit oils and fruit cocktail tariffs as high as 21.3 percent will be eliminated within 11 years.  Malaysia’s fresh oranges and citrus juice tariffs are locked in at 0 percent. Processed fruit products tariffs as high as 20 percent will be eliminated immediately.  Vietnam’s citrus juice tariffs of 25 percent will be eliminated in 3-5 years. Processed fruit products tariffs as high as 40 percent will be eliminated within 8 years. . FLORIDA AGRICULTURE United States Department of Agriculture Foreign Agricultural Service Florida Trans-Pacific Partnership (TPP) The Trans-Pacific Partnership (TPP) will boost demand for U.S. farm and food products among nearly 500 million consumers in 11 countries across the Asia-Pacific region. By reducing tariffs and opening new markets for American agricultural products, the TPP will help increase farm income, generate rural economic activity, and support local jobs. Top 5 Florida Agricultural Exports Fruits and Nuts 1 Vegetables 2 Dairy 3 Cotton 4 Beef 5 30,300 Florida jobs supported by agricultural exports $4 billion Annual value of Florida agricultural exports Source: USDA-ERS 2013 State Export Data

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Failure to Lead. It is critical to remember that the TPP is a multi-lateral agreement intended to create high quality rules and market access across its 12 members. However, outside of TPP, other member countries would – and indeed are – already negotiating and implementing bilateral agreements without waiting for the United States to complete action. While legally TPP would only go into full effect if the United States ratifies the agreement, other countries will move forward with their trade capabilities regardless of whether or not the United States decides to ratify the agreement. U.S. failure to enact TPP will not see our trade situation stay the same, but will lead to declining net exports and market share in important markets. Fruits and NutsBeef: FloridaArizona’s fruit beef industry leads all other agricultural industries in the state with more than $2.4 1.2 billion in cash receipts in 2014. TPP passage is expected to increase fruits and nuts cash receipts by $59 million per year, which is driven by a $52.5 million per year increase in direct exports to TPP countries.  Japan’s avocados, strawberries, blueberries, and watermelon tariffs as high as 17 percent will be eliminated xxxxxxxxxxx.Xxxxxx tariffs from 16-32 percent will be eliminated in 6-8 years. Japan’s remaining fresh fruit tariffs as high as 17 percent will be eliminated within 11 years.  Malaysia’s melons and strawberry tariffs as high as 30 percent will be eliminated immediately. Grapefruit and lemon tariffs of 5 percent will be eliminated immediately.  Vietnam’s strawberry tariffs as high as 30 percent will be eliminated within 3 xxxxx.Xxxxxx tariffs of 20 percent will be eliminated in 4 years. Grapefruit tariffs of 40 percent will be eliminated in 3 years. Fresh lemon tariffs of 20 percent will be eliminated in 3 years. Beef: Florida’s cattle industry produced $867.8 million in cash receipts in 2014. TPP passage is expected to increase beef cash receipts by $7.9 10.4 million per year, which is driven by a $7.3 9.6 million per year increase in direct exports to TPP countries. Japan will eliminate 74 percent of duties on beef imports within 16 years. This includes reducing a tariff of 38.5 percent to 9 percent within 16 years on fresh, chilled, and frozen beef cut. The World Trade Organization safeguard will also be replaced by the TPP-wide safeguard, which is predicted to be less trade-limiting. Japan’s beef offal tariffs as high as 21.3 percent will be eliminated in 6-16 years. Malaysia’s tariffs on imports of beef will be eliminated. Vietnam’s tariffs as high as 34 percent on beef, will be eliminated in 3-8 years. New Zealand’s tariffs as high as 5 percent on beef, will be eliminated immediately. Dairy: Arizona’s dairy industry produced $1.1 billion in cash receipts in 2014. TPP passage is expected to increase dairy cash receipts by $5.9 million per year, which is driven by a $2.8 million per year increase in direct exports to TPP countries. ▪ Japan’s cheese tariffs as high as 40 percent, will be eliminated in 16 years. ▪ Japan’s tariffs on whey will be eliminated, while establishing safeguards for whey powder will be terminated within 18 years. Whey protein concentrate will be terminated within 24 years. ▪ Japan’s whey for food tariffs, which currently face tariffs as high as 29.8 percent, will be eliminated in 21 years. ▪ Malaysia’s dairy product tariffs as high as 5 percent, will be eliminated immediately. ▪ Vietnam’s tariffs of 20 percent on cheese, milk powder, and whey will be eliminated immediately. ▪ New Zealand’s tariffs on dairy products will be eliminated immediately. ▪ Brunei’s tariffs on dairy products will be eliminated immediately. Processed Food and Fish: In 2014, Florida Arizona exported $362.7 200.5 million of processed foods to TPP countries. As of 2012, there were 26,588 9,382 employees in FloridaArizona’s food manufacturing sector, with the largest subsector being fruit and vegetable preserving dairy product manufacturing at 2842% of food manufacturing. Japan’s orange juice tariffs on lactose and lactose syrup, which are as high as 8.5 percent, will be eliminated immediately. ▪ Whipped cream, frozen yogurt, and various dairy- and cocoa-containing food, which currently face tariffs in Japan as high as 29.8 percent percent, will be duty-free 0 percent in 6-11 years. Grapefruit juice ▪ Ice cream, yogurt, blue cheese, and whole milk powder, which currently face tariffs in Japan as high as 29.8 percent 35 percent, will be eliminated in 6-8 yearsreduced 50 to 90 percent. Essential citrus fruit oils ▪ Vietnam’s tariffs on dairy products other than cheese, milk power, and fruit cocktail tariffs whey, which currently are as high as 21.3 percent 20 percent, will be eliminated within 11 years.  Malaysia’s fresh oranges and citrus juice tariffs are locked in at 0 percent. Processed fruit products tariffs as high as 20 percent will be eliminated immediately.  Vietnam’s citrus juice tariffs of 25 percent will be eliminated in 3-5 years. Processed fruit products tariffs as high as 40 percent will be eliminated within 8 years. . FLORIDA ARIZONA AGRICULTURE United States Department of Agriculture Foreign Agricultural Service Florida Arizona Trans-Pacific Partnership (TPP) The Trans-Pacific Partnership (TPP) will boost demand for U.S. farm and food products among nearly 500 million consumers in 11 countries across the Asia-Pacific region. By reducing tariffs and opening new markets for American agricultural products, the TPP will help increase farm income, generate rural economic activity, and support local jobs. Top 5 Florida Arizona Agricultural Exports Vegetables 1 Cotton 2 Dairy 3 Beef and Veal 4 Fruits and Nuts 1 Vegetables 2 Dairy 3 Cotton 4 Beef 5 30,300 Florida 10,600 Arizona jobs supported by agricultural exports $4 1.4 billion Annual value of Florida Arizona agricultural exports Source: USDA-ERS 2013 State Export Data

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Failure to Lead. It is critical to remember that the TPP is a multi-lateral agreement intended to create high quality rules and market access across its 12 members. However, outside of TPP, other member countries would – and indeed are – already negotiating and implementing bilateral agreements without waiting for the United States to complete action. While legally TPP would only go into full effect if the United States ratifies the agreement, other countries will move forward with their trade capabilities regardless of whether or not the United States decides to ratify the agreement. U.S. failure to enact TPP will not see our trade situation stay the same, but will lead to declining net exports and market share in important markets. Fruits and NutsPoultry: FloridaVirginia’s fruit broiler industry leads all other agricultural industries in the state with more than $2.4 billion 917.9 million in cash receipts in 2014. TPP passage is expected to increase fruits and nuts poultry cash receipts by $59 17.1 million per year, which is driven by a $52.5 4.6 million per year increase in direct exports to TPP countries.  Japan’s avocados, strawberries, blueberries, and watermelon ▪ Japan will eliminate tariffs as high as 17 21.3 percent on all poultry in 6-13 years. ▪ Japan’s 3 percent tariff on turkey and turkey offal will be eliminated xxxxxxxxxxx.Xxxxxx tariffs from 16immediately. ▪ Malaysia will have a growing tariff-32 rate quota (TRQ) and an in-quota tariff of 0 percent will be eliminated in 6-8 yearsfor live chicks, poultry meat, and eggs. Japan▪ Vietnam’s remaining fresh fruit tariffs as high as 17 40 percent on poultry and poultry meat, will be eliminated within 13 years. ▪ Frozen chicken cuts and offal, which have tariffs as high as 40 percent in Vietnam, will be eliminated within 11 years.  Malaysia▪ New Zealand’s melons and strawberry tariffs as high as 30 percent on poultry will be eliminated immediately. Grapefruit and lemon tariffs of 5 percent will be eliminated immediately.  Vietnam’s strawberry tariffs as high as 30 percent will be eliminated within 3 xxxxx.Xxxxxx tariffs of 20 percent will be eliminated in 4 years. Grapefruit tariffs of 40 percent will be eliminated in 3 years. Fresh lemon tariffs of 20 percent will be eliminated in 3 years. Beef: FloridaVirginia’s cattle industry produced $867.8 714 million in cash receipts in 2014. TPP passage is expected to increase beef cash receipts by $7.9 10.5 million per year, which is driven by a $7.3 9.7 million per year increase in direct exports to TPP countries. Japan will eliminate 74 percent of duties on beef imports within 16 years. This includes reducing a tariff of 38.5 percent to 9 percent within 16 years on fresh, chilled, and frozen beef cut. The World Trade Organization safeguard will also be replaced by the TPP-wide safeguard, which is predicted to be less trade-limiting. Japan’s beef offal tariffs as high as 21.3 percent will be eliminated in 6-16 years. Malaysia’s tariffs on imports of beef will be eliminated. Vietnam’s tariffs as high as 34 percent on beef, will be eliminated in 3-8 years. New Zealand’s tariffs as high as 5 percent on beef, will be eliminated immediately. Processed Food and Fish: In 2014, Florida Virginia exported $362.7 212.0 million of processed foods to TPP countries. As of 2012, there were 26,588 27,400 employees in FloridaVirginia’s food manufacturing sector, with the largest subsector being fruit animal slaughtering and vegetable preserving processing at 2831% of food manufacturing.  Japan’s orange juice ▪ Japan will eliminate tariffs as high as 29.8 50 percent will be duty-free in 6-11 years16 years on processed beef products. Grapefruit juice ▪ Malaysia’s tariffs on imports of beef products will be eliminated. ▪ Vietnam’s tariffs as high as 29.8 34 percent on beef products, will be eliminated in 63-8 years. Essential citrus fruit oils and fruit cocktail ▪ New Zealand’s tariffs as high as 21.3 5 percent on beef products, will be eliminated immediately. ▪ Brunei will eliminate all tariffs for beef products. ▪ Japan’s tariffs on hides and skins, as high as 30 percent, will be eliminated within 11 years.  Malaysia▪ Vietnam’s fresh oranges tariffs on hides and citrus juice tariffs are locked in at 0 percent. Processed fruit products tariffs skins, currently as high as 20 5 percent will be eliminated immediately.  Vietnam’s citrus juice tariffs of 25 percent will be eliminated in 3-5 years. Processed fruit products tariffs as high as 40 percent will be eliminated within 8 years. . FLORIDA VIRGINIA AGRICULTURE United States Department of Agriculture Foreign Agricultural Service Florida Virginia Trans-Pacific Partnership (TPP) The Trans-Pacific Partnership (TPP) will boost demand for U.S. farm and food products among nearly 500 million consumers in 11 countries across the Asia-Pacific region. By reducing tariffs and opening new markets for American agricultural products, the TPP will help increase farm income, generate rural economic activity, and support local jobs. Top 5 Florida Virginia Agricultural Exports Fruits and Nuts Poultry 1 Vegetables 2 Tobacco 4 Dairy 3 Cotton 4 Beef 5 30,300 Florida 9,100 Virginia jobs supported by agricultural exports $4 1.2 billion Annual value of Florida Virginia agricultural exports Source: USDA-ERS 2013 State Export Data

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Failure to Lead. It is critical to remember that the TPP is a multi-lateral agreement intended to create high quality rules and market access across its 12 members. However, outside of TPP, other member countries would – and indeed are – already negotiating and implementing bilateral agreements without waiting for the United States to complete action. While legally TPP would only go into full effect if the United States ratifies the agreement, other countries will move forward with their trade capabilities regardless of whether or not the United States decides to ratify the agreement. U.S. failure to enact TPP will not see our trade situation stay the same, but will lead to declining net exports and market share in important markets. Fruits and NutsPoultry: FloridaGeorgia’s fruit broiler industry leads all other agricultural industries in the state with more than $2.4 4.8 billion in cash receipts in 2014. TPP passage is expected to increase fruits and nuts poultry cash receipts by $59 70.1 million per year, which is driven by a $52.5 million per year increase in direct exports to TPP countries.  Japan’s avocados, strawberries, blueberries, and watermelon tariffs as high as 17 percent will be eliminated xxxxxxxxxxx.Xxxxxx tariffs from 16-32 percent will be eliminated in 6-8 years. Japan’s remaining fresh fruit tariffs as high as 17 percent will be eliminated within 11 years.  Malaysia’s melons and strawberry tariffs as high as 30 percent will be eliminated immediately. Grapefruit and lemon tariffs of 5 percent will be eliminated immediately.  Vietnam’s strawberry tariffs as high as 30 percent will be eliminated within 3 xxxxx.Xxxxxx tariffs of 20 percent will be eliminated in 4 years. Grapefruit tariffs of 40 percent will be eliminated in 3 years. Fresh lemon tariffs of 20 percent will be eliminated in 3 years. Beef: Florida’s cattle industry produced $867.8 million in cash receipts in 2014. TPP passage is expected to increase beef cash receipts by $7.9 million per year, which is driven by a $7.3 18.9 million per year increase in direct exports to TPP countries.  Japan will eliminate 74 percent of duties on beef imports within 16 years. This includes reducing a tariff of 38.5 percent to 9 percent within 16 years on fresh, chilled, and frozen beef cut. The World Trade Organization safeguard will also be replaced by the TPP-wide safeguard, which is predicted to be less trade-limiting.  Japan’s beef offal tariffs as high as 21.3 percent on all poultry in 6-13 years.  Japan’s 3 percent tariff on turkey and turkey offal will be eliminated immediately.  Japan will eliminate tariffs on egg yolks, which currently face a tariff as high as 20 percent.. Egg albumin tariffs, as high as 8 percent, will be eliminated immediately.  Malaysia will have a growing tariff-rate quota (TRQ) and an in-quota tariff of 0 percent for live chicks, poultry meat, and eggs.  Vietnam’s tariffs as high as 40 percent on poultry and poultry meat, will be eliminated within 13 years.  Frozen chicken cuts and offal, which have tariffs as high as 40 percent in Vietnam, will be eliminated within 11 years.  New Zealand’s tariffs on poultry will be eliminated immediately. Cotton: Georgia’s cotton industry produced $1.2 billion in cash receipts in 2014. TPP passage is expected to increase cotton cash receipts by $3.6 million per year, which is driven by a $4.3 million per year increase in direct exports to TPP countries.  Japan’s cotton tariffs will remain at 0 percent.  Malaysia’s cotton tariffs will be 0 percent.  Vietnam’s cotton tariffs, as high as 10 percent, will be eliminated in 4 years.  New Zealand’s and Brunei’s tariffs on all cotton products will be 0 percent. Processed Food and Fish: In 2014, Georgia exported $292 million of processed foods to TPP countries. As of 2012, there were 59,054 employees in Georgia’s food manufacturing sector, with the largest subsector being animal slaughtering and processing at 34% of food manufacturing.  Japan’s tariffs on egg products, as high as 21.3 percent, will be eliminated in 6-13 years. Tariffs on dried eggs, other than yolks, which currently face a tariff of 21.3 percent will be cut to 10.6 percent immediately, 5.3 percent in year 7, and eliminated in year 13.  Japan will eliminate tariffs as high as 50 percent in 6-16 yearsyears on processed beef products.  Malaysia’s tariffs on imports of beef products will be eliminated.  Vietnam’s tariffs as high as 34 percent on beefbeef products, will be eliminated in 3-8 years.  New Zealand’s tariffs as high as 5 percent on beefbeef products, will be eliminated immediately. Processed Food and Fish: In 2014, Florida exported $362.7 million of processed foods to TPP countries. As of 2012, there were 26,588 employees in Florida’s food manufacturing sector, with the largest subsector being fruit and vegetable preserving at 28% of food manufacturing Brunei will eliminate all tariffs for beef products.  Japan’s orange juice tariffs on hides and skins, as high as 29.8 percent will be duty-free in 6-11 years. Grapefruit juice tariffs as high as 29.8 percent will be eliminated in 6-8 years. Essential citrus fruit oils and fruit cocktail tariffs as high as 21.3 percent 30 percent, will be eliminated within 11 years.  MalaysiaVietnam’s fresh oranges tariffs on hides and citrus juice tariffs are locked in at 0 percent. Processed fruit products tariffs skins, currently as high as 20 5 percent will be eliminated immediately.  Vietnam’s citrus juice tariffs of 25 percent will be eliminated in 3-5 years. Processed fruit products tariffs as high as 40 percent will be eliminated within 8 years. . FLORIDA GEORGIA AGRICULTURE United States Department of Agriculture Foreign Agricultural Service Florida Georgia Trans-Pacific Partnership (TPP) The Trans-Pacific Partnership (TPP) will boost demand for U.S. farm and food products among nearly 500 million consumers in 11 countries across the Asia-Pacific region. By reducing tariffs and opening new markets for American agricultural products, the TPP will help increase farm income, generate rural economic activity, and support local jobs. Top 5 Florida Georgia Agricultural Exports Cotton 1 Poultry 2 Fruits and Nuts 1 3 Vegetables 2 Dairy 3 Cotton 4 Beef Wheat 5 30,300 Florida 22,800 Georgia jobs supported by agricultural exports $4 3 billion Annual value of Florida Georgia agricultural exports Source: USDA-ERS 2013 State Export Data

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