To integrate least developed countries including Ethiopia in to internationalrntrade market, African Growth Opportunity (AGOA) and Everything But Armrn(EBA) initiatives have been designed by U.S. and European countriesrnrespectively. The purpose of these initiatives is to enhance and diversify thernexport of the beneficiary countries. Therefore the purpose of this study is tornanalyze the effects of these programs on Ethiopian export. The study employsrnthe fixed effect gravity model using panel data for the period 1974/75 -rn2005/ 06 of annual datarn.rnThe main findings of the study show that AGOA has negative contribution tornEthiopian Export. This might be explained from both beneficiary (i.e. Ethiopia)rnand granting country's limitation. Poor infrastructure, lack of skilledrnmanpower , poor public services, etc of Ethiopia is some of the limitation tornexploit the scheme. Whereas un stability of the program, rules of origin, nonrntariff harries are some of the factors that hinders the exploitation of thernscheme.rnrnThe result of the study also indicates that the European Union initiative hasrnno significant effect on Ethiopian export. Like U.S. initiative this program hasrnalso its own limitations, but still Ethiopia has to identify the drawbacks inrnexploiting the program.rnrnThe policy implication of the finding is that to exploit the program Ethiopiarnhas to solve the drawbacks for her poor export performance. Especially shernhas to use export diversification strategy, i.e. the government has to peruse torndiversify exportable commodities from agriculture to other products bothrnvertically and horizontally in order to be competitive . Since most of exportrnitems relied on few primary products. In addition to this the government has torngive due attention to improve social capital, skilled manpower, public servicesrninfrastructure etc.