Gordon Brown warned today that countries must not resort to protectionism to drag their respective economies out of the global downturn.

Speaking at the World Economic Forum (WEF) in Davos, the Prime Minister said: “This is a time not just for individual, national measures to deal with the global financial crisis. This is the time ... for the world to come together as one.”

Mr Brown said: “In these unprecedented times, I’ve come here to Davos to say that politicians and business leaders, all of us, have an urgent responsibility to rise to the challenges of leadership.

“This financial mercantilism - which is foreign banks retreating to their home base - will, if we do nothing, lead to a new form of protectionism. Indeed, a deglobalisation which would lead to a reduction in trade and cross-border business activity, which would be followed by the old trade protectionism of the past."

The risk of protectionism has emerged as one of the key themes of the WEF this year and follows criticism of a “Buy American” provision in President Obama’s $825 billion (£199 billion) financial stimulus package, which would prohibit foreign-made steel from new infrastructure projects.

Kamal Nath, the Indian Trade Minister, warned this week in Davos that the global financial crisis could fuel protectionism.

He said: "We do fear this because one must recognise that at the heart of globalisation lies global competitiveness, and if governments are going to protect their non-competitive production facilities, it's not going to be fair trade.

"If there are protectionist measures, India will be compelled to also take commensurate measures against those countries, which will be good for no one."

However, Pascal Lamy, Director-General of the World Trade Organisation (WTO), said that moves towards protectionism during a downturn were expected.

"We all know by experience that erecting obstacles to trade would make things worse," he said.

"And the first thing you have to do when you have to cope with a crisis like this is don't shoot in your own foot."

Mr Brown is attending Davos without the Chancellor, Alistair Darling, who had been due to attend but pulled out yesterday when it emerged that several people who had been scheduled to attend would not be going to the WEF.

David Miliband, the Foreign Secretary, also pulled out of the event.

Looking ahead to the Group of 20 summit in April in London, Mr Brown said that the focus would be on efforts to counter the global financial crisis.

He said: “The primary focus of the G20 summit will be on the economic recovery. It will be on jobs and growth.”

The theme is also likely to be discussed this afternoon in Davos when Mr Brown will speak at a session titled "Reviving Economic Growth".

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