Queensland Premier Annastacia Palaszczuk has refused to back down from a Queensland-first jobs policy, amid calls for federal Opposition Leader Bill Shorten to "rein her in".
Ms Palaszczuk is under fire for a new procurement policy that gives local businesses a 30 per cent subsidy on the supply of local products and services when state government contracts are being considered.
The decision has sparked ire across the Tasman with New Zealand and a second unknown foreign government registering concerns with the federal government.
In an op-ed released on Monday, federal coalition MP Warren Entsch called the Buy Queensland campaign "extremely simplistic" and accused the premier of pursuing populist rhetoric at the expense of billion-dollar trade deals.
"The Buy Queensland campaign is only about buying votes ahead of the next state election, rather than looking for genuine opportunities for Queensland businesses," Mr Entsch wrote.
"The Queensland Government needs to look for better ways of engaging local businesses and provide them with opportunities that also work for our competitors."
Federal Trade Minister Steve Ciobo called on Mr Shorten to pull Ms Palaszczuk into line over the policy, which he says breaches trade agreements with countries like New Zealand.
"Billions of dollars of Australia's and Queensland exports, and the thousands of jobs they support, are now at risk," Mr Ciobo told the Courier-Mail.
Mr Ciobo was angered after it emerged over the weekend that Queensland Housing Minister Mick de Brenni had sent letters to constituents bragging that the state government was "breaking" the Turnbull government's trade agreements and he "couldn't give a toss".
National Farmers Federation president Fiona Simson called for the Queensland government to rethink its "short-sighted" plan, arguing it showed contempt for the agriculture sector and farmers who relied on export markets for their livelihoods.
"Such reckless activity is not only not in the national interest but, also potentially to the detriment of Queensland's own farmers," she said.
But Ms Palaszczuk says the plan is about prioritising local jobs, not cutting ties with major export markets.
"I just want to know what they have against Queensland," Ms Palaszczuk told reporters on Monday.
"This is about saying, especially in regional areas of Queensland that are experiencing high unemployment, hiring local suppliers and local workers to get that work in their local area for local jobs."
While Mr de Brenni said he stood by his message to constituents, and accused Mr Ciobo of stirring up a scandal out of nothing.
"I find it extraordinary that a federal LNP Minister is conjuring up some fake trade war that doesn't exist, and refuses to back Queensland businesses," he said.
