World - "Protectionist measures would only serve to worsen the current international financial crisis, and must be fought against, Brazilian President Luiz Inacio Lula da Silva said on Tuesday... during the signing of several cooperation agreements with his Colombian counterpart Alvaro Uribe.

The president said he will keep on defending the free trade, and hoped neighboring countries would extend help...." [Xinhua/Factiva]

...an insurgent wave of protectionism...threatens to aggravate the global economic downturn...Lula called for a coordinated effort to both regulate world financial markets and assure free trade.Lula said countries would have an opportunity to correct world trade financial market distortions at an upcoming meeting of G-20 economy officials in London on April 2...

Despite his concerns Lula said that his government would greet the economic downturn with an active response, and called for additional investment locally and regionally...With continued private and public investment, Lula said he believed Brazil could still avert a recession in 2009. [Dow Jones]

Meanwhile, the National Post reports that "[international] government pressure on banks to lend domestically and the continuing strain on bank capital is prompting lenders to retrench to their home markets, raising fears of protectionism hurting global growth.

U.S., European and Asian governments are bailing out troubled banks and providing billions of dollars to keep credit flowing in the broader economy. [National Post]

In related news, Agence France Presse "British Prime Minister Gordon Brown called Wednesday for a "grand bargain" between national leaders to help the global economy out of a marked slowdown...

He was speaking as his office published "The Road to the London summit," setting out proposals in the run-up to the April 2 summit of the Group of 20 (G20) advanced and developing nations.

The 74-page report sets out priorities including the need to stimulate the global economy, kick-start lending, renounce protectionism, reform global regulation and international financial institutions. [Agence France Presse]