This paper analyses prospects of utilizing export trade as a strategy for poverty reduction in a small but open economy like that of Tanzania. Akin to other low income countries that are dependent on agriculture for both food and export earnings, the paper critically examines the strengths and constraints of using traditional and non-traditional exports for generation of pro-poor growth and poverty reduction. The paper advocates for policy interventions that would enable countries like Tanzania to systematically move away from subsistence production towards the production of high value tradable export goods and improve terms of global trade.