Portugal Colonial - In Portugal, Lula urges return to multilateralism

"Since we do not favour a second Cold War... we have no trade preferences," the leftist leader said following a meeting with Portuguese Prime Minister Luis Montenegro.

"We want to have relations with China, with the United States, with Russia, with France. We want relations with everyone without preference.

"What we want is multilateralism and a great deal of peace so we can negotiate," he added.

Mulling the evolution of global trade, Lula criticised moves away from free trade towards protectionism by some powers, without mentioning any by name, just as emerging economies seek to carve out their own role.

In the 1980s, "we were told that free trade and globalisation were the most fantastic things, and in Brazil we were rather against them," owing to poor competitiveness, Lula said.

"But when we began to become competitive... those who had defended free trade became protectionists," he complained.

Lula, 80, who began a European tour last week, was later to meet with Portuguese counterpart Jose Seguro for their first face-to-face talks since Seguro took office in March.

Outside the presidential palace, Portuguese far-right leader Andre Ventura joined a small group of demonstrators to protest at Lula's visit on grounds of alleged "corruption".

A counter-demonstration in Lula's support took place nearby, organised by the Portuguese branch of Lula's Workers' Party.

A.Seabra--PC