The Trans pacific Trade Agreement is an agreement to eliminate tariffs, except for copyrights, patents and instances where partners get a prior agreement on tariffs. This agreement expands the power of courts to restrict trade where there are IP conflicts. Does not meet the definition of free trade.
Krugman is right to complain. Mankiw's argues for free trade, this agreement is restricted trade. Mankiw simply changes the semantics so he can select the restricted trade that favors his point of view, Mankiw is not a free trader. We all know the difference between restricted trade and free trade, Mankiw is wrong.
Don Boudreaux quotes a definition that denies this is a free trade agreement:
Understanding the connection between economic freedom, entrepreneurship and prosperity isn’t difficult. In a free market, entrepreneurs devise new products, as well as new methods of production and distribution. If consumers find entrepreneur Jones’s new product valuable enough to buy it a price that covers its cost, Jones reaps profits. If consumers find entrepreneur Smith’s new product to not be worth the price necessary to cover its costs, Smith suffers loses that are his to bear. This simple market test—one in which each consumer and entrepreneur spends his or her own money, and in which almost all economic transactions are consensual—is by far the best means yet devised for ensuring not only that scarce resources are used as productively as possible, but also that creative human effort is continually called forth to discover ever-newer and better ways to use resources.OK, Don, how does going to court to retract a cash transaction satisfy this definition? You say people have the right to buy and sell patents, find. We also have the right not to buy and sell them, fine also. The definition call a product the thing exchanged, I exchange a product without a patent, you don;t like it? Great, so you restrict my trade using the government police force? You and Mankiw are firggen socialists. If an entrepreneur does not want someone to copy, then hide and protect the method using his/her own money, keep the Cafe Hayek socialists out of government.
Score one for Krugman, he defends free trade.
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