Existing tariff levels of many countries, and particularly of developi
ng countries and on agriculture for most countries, still give plenty
of scope for trade discrimination. For non-tariff barriers there is su
bstantial scope for discrimination within and beyond the transitional
arrangements of the Uruguay Round Agreements, as well as under free tr
ade agreements, customs unions and developing country preferences. Cri
teria are suggested which could ensure that preferential trading arran
gements would promote rather than undermine the development of a liber
al, multilateral trading system: actual preferential arrangements gene
rally fall well short of satisfying these criteria. The proliferation
of preferential (that is discriminatory) an arrangements suggests ther
e is a real possibility that the negative aspects of discrimination co
uld be a problem of tomorrow, and not just of yesterday.