Labour's bid to change government procurement rules in favour of New Zealand companies has failed.
Party leader Andrew Little's member's bill was defeated 61-59 in Parliament last night.
Mr Little argued the government should buy Kiwi-made whenever possible.
"Buying from Kiwi companies keeps jobs and wages in New Zealand," he said.
"My bill requires that when government organisations issue procurement tenders, they design the contract to give Kiwi firms a fair chance of winning and choose successful bids based on the creation of jobs in New Zealand."
National MPs opposed the bill.
"Jobs are not going to be created by trying to sell more things to ourselves," said Paul Foster-Bell.
"And this bill is contrary to a number of our free trade agreements."
Labour, the Greens, NZ First and the Maori Party supported the bill.
National, ACT and United Future opposed it.