Developing countries have experienced extensive and rapid tradernliberalization in recent years which undertaken both in the context ofrnmultilateral trade negotiations and as part of the conditionality linked tornthe structural adjustment and stabilization programs agreed with therninternational monetary fund (IMF) and the world bank (WB). Thernimpact of trade liberalization economic reforms on export performancernis controversial even if it is widely adopted in developing countries.rnthe aim of this paper is to analyze the impact of economic reform policiesrnon the agricultural export performance of Ethiopia; especially,rndiversification, competitiveness and openness for the period 1974 to 2004.rnthe main question addressed here is whether the reforms made has arnpositive impact on the export performance of the country; and to analyzernthe relative importance of domestic supply related factors such asrndiversification, competitiveness and openness as compared with externalrndemand conditions in determining agricultural export performance of therncountry. The performance of the sector is analyzed using these fourrnindicator time series variables to capture the effects of both internationalrnmarket potential and domestic supply side policy reforms.rnthe data are analyzed usmg ordinary least squares (OLS) and errorrnCorrection Model (ECM) frameworks to examine the impact of tradernpolicy on the agricultural export expansion of the country both in the shortrnrun and in the long run. The main findings of the analysis are agriculturalrnexport performance is more sensitive to the domestic supply side policyrnreforms like diversification and openness. Among them diversification isrnan important factor that explains export performance both in the short runrnand in the long run, indicating that the country should continue torndiversify her exports.