World Trade Organisation (WTO) director-general Pascal Lamy has called for trade opening to continue as the global economic outlook worsens.
In an annual report to WTO members on developments in the international trading environment, Lamy told members "in the context of greater economic uncertainty and rising global risks, it is all the more important that the process of global trade opening continues".
In light of the worsening global economy in recent months, with the forecast for world export growth revised downwards to 5.8 per cent in 2011, he warned that unilateral action to shield domestic industries would not solve global problems.
However, he said it might make things worst by triggering a spiral of tit-for-tat reactions in which every country will lose.
Lamy said risks and uncertainties were increasing, after the encouraging signals of recovery seen at the end of 2010.
"Global activity is slowing down, economic performance continues to be uneven across countries, debt levels and financial volatility are rising, high unemployment levels persist in many countries and confidence has recently fallen sharply.
"These risks are aggravated by perceptions in markets that government responses to these challenges have so far been inadequate," he said, adding that world trade has grown more slowly than expected in recent months.
He also said developed economies have been hit by a number of problems ranging from shrinking global demand, to the impact of natural disasters, to issues related to national budgets, credit conditions, and the sovereign debt crisis.
"Trade growth in developing countries have also been adversely affected by global developments, including signs of overheating in some major emerging markets," he added.