She says US corporations would get the benefit of all the controversial rules on medicine patents, copyright, investment, state-owned enterprises that the US insisted on without the US having to give a single thing in return.
“Worse, countries that resisted these unprecedented demands for several years would become their new champions.”
US President Donald Trump has signed executive orders withdrawing America from the Trans-Pacific Partnership (TPP) and instituting a government hiring freeze.
In an Oval Office ceremony overnight, Trump delivered on his campaign promise to formally withdraw from the TPP, which was negotiated by Barack Obama between 12 countries including Australia.
Trump, who has said the agreement would harm the US economy, said the order was a "great thing for the American worker".
Prime Minister Bill English says some form of free trade agreement could still go ahead, despite Trump scuttling the deal.
"Last week the Prime Minister of Japan was in Australia and was very positive about finding a way through on plan B on the TPP if the US is not part of it," English says.
But Kelsey says the economic modelling the government relied on to sell the TPP last year had zero credibility and failed to account for the costs.
“Take the US out of that equation and any attempt to pitch the agreement as having net benefits to New Zealand is risible.
“Trying to sell the unsaleable during an election year would be a major political miscalculation.”
