In a meeting Saturday, the G7 nations - the United States, Britain, Canada, France, Germany, Italy, and Japan - pledged to maintain and uphold policies of free trade in order to tackle the financial crisis and international economic recession.

“We reaffirm our strong and shared commitment to protect the integrity of the international financial system and facilitate liquid, smooth functioning markets, which are essential for supporting the health of the world economy,” said the press release, responding to fears that governments would abandon international competition in favor of short term job protections - driving up prices and reducing gains from trade internationally.

The stimulus plan passed by the House and Senate Friday in the United States includes provisions to require that steel and other basic materials used in recovery projects are purchased in the United States only. Governments and steelworker’s unions internationally have criticized the protectionist policy; some analysts fear the following downward protectionist spiral that occurred during the Great Depression.

“We strongly welcome the extraordinary actions taken by the United States to enhance the stability of financial markets and address credit concerns, especially through its plan to implement a program to remove illiquid assets that are destabilizing financial institutions. We also strongly welcome the measures taken by other G-7 countries. Major central banks have been coordinating to address liquidity pressures in funding markets, which has been critical in addressing disruptions in global financial markets. Several regulators have taken decisive actions to combat market manipulation and stabilize financial markets, including a temporary ban on short selling of financial stocks.”

Just a few days earlier, France responded to claims that automotive industry protectionist policies within the country were legal and legitimate under European Union rule.

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