ALMOST $4 billion worth of government goods and services will have to be sourced from Australian companies first in a New South Wales ban on "made in China" products which is to be imposed in its State Budget tomorrow.
The Daily Telegraph reports that all NSW Government departments and agencies will be forced to protect Australian jobs by giving preference to locally made products.
The Federal Government will not support the ban, Foreign Minister Stephen Smith said today.
"This is not the time for Australia to retreat to protectionism," Mr Smith told Sky News.
Any local procurement policy would have to be consistent with Australia's obligations to the World Trade Organisation.
"What we can't do is focus in a discriminatory way on one particular nation, whoever that nation might be."
NSW's ban would include stationery, uniforms, cars and even trains and building contracts.
And to make local bids more competitive, a 20 per cent discount will be applied to Australian products when comparing the cost with overseas bidders. Click here to read the full story