Brown calls for less protectionism

British Prime Minister Gordon Brown today urged countries to be less closed to trade and investment to help offset the risk of…

British Prime Minister Gordon Brown today urged countries to be less closed to trade and investment to help offset the risk of a downturn in the global economy.

Britain's Prime Minister Gordon Brown is pictured on a television screen as he attends a session of the World Economic Forum (WEF) in Davos today.
Britain's Prime Minister Gordon Brown is pictured on a television screen as he attends a session of the World Economic Forum (WEF) in Davos today.

"We have to be less protectionist," Mr Brown said at the annual meeting of the World Economic Forum in Davos today.

"I think there is a danger. I see it in parts of Europe where people resort to protectionism," Mr Brown told the forum.

Mr Brown did not identify the countries he was referring to, but his views contrast with those of French President Nicolas Sarkozy who is more wary about liberalising global trade and the prospect of foreign state-run investment firms using huge cash piles to shore up blue-chip companies hit by market turmoil.

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The British prime minister repeated his call for progress soon in the World Trade Organisation's long-delayed negotiations for a global trade deal.

"The challenge is to show we can make the world trade talks move forward," Mr Brown said.

Trade ministers from several trading powers are due to meet on Saturday in Davos to discuss the chances of a breakthrough in the WTO's Doha round of negotiations, which risks running out of time soon.

As well as opening up to more trade and investment, countries also needed to ensure they had the right fiscal policies and enough transparency in markets, or risk being caught out by the darkening economic outlook, Mr Brown said.