Developed nations grant different privileges to enhance the capacity and competitiveness of Ethiopia in international market. AGOWA and EBA are among these grants by USA and Europe respectively. However, their effectiveness is highly hindered by the bottlenecks of both parties,i.e. from recipient country''s internal capacity limitation like absence of infrastructure, reliance on primary products, etc and preconditions sets by developed countries, zero tariff given to Ethiopian exporters was not made to be competitive on international market. Hence, the grants given by the USA and Europe didn''t have significant impact on the volume of Ethiopian export. Therefore, this book tries to identify the reasons why these grants fail and gives recommendations on how to increase the effectiveness of the privileges.