November 13, 2013
A NYT article on growing Congressional opposition to the Trans-Pacific Partnership (TPP) told readers;
“The T.P.P. as outlined is aimed at reducing barriers, cutting red tape and harmonizing international regulations,..”
It is not true that the TPP is designed simply to reduce barriers. The provisions on patent monopolies for prescription drugs and related protections like data exclusivity will almost certainly increase barriers and raise prices. This is likely to be the case with its copyright related provisions as well. The additional costs associated with increased protectionism in these areas may well exceed any savings associated with lower barriers elsewhere. Protectionism in the prescription drug industry in the United States add close to $270 billion a year (@1.6 percent of GDP) to drug costs.
The piece also refers to the opposition to TPP to the agreement as coming “sight unseen.” This is not quite right. While the Obama has been negotiating the TPP largely in secret, many members have seen portions of the draft text. Also portions have been leaked and are available on the web.
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