Todd McClay has accused Queensland Premier Annastacia Palaszczuk of being 'short-sighted' over her plan to preference local businesses and turn her back on Australia and New Zealand's long-standing free trade agreement.

New Zealand Trade Minister Todd McClay said he was disappointed to hear about the Buy Queensland procurement policy, announced at Labor's state conference last weekend.

Palaszczuk says local businesses would receive weightings of up to 30 per cent in the consideration of government contracts.

She said the policy would mean reconsidering Australia and New Zealand's agreement, which was 'not good' for Queensland.

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We are not talking about wholesale protectionism, we are talking about putting Queensland first,' she said.

'If the Australia-New Zealand Government Procurement Agreement gets in the way of that, we will go it alone.'

Federal Trade Minister Steven Ciobo is seeking advice about the legality of the Palaszczuk government's controversial 'Buy Queensland' procurement policy.

Ciobo says it will discriminate against overseas trade partners, and urged Queensland Premier Annastacia Palaszczuk to 'dump this reckless policy'.