Across the transition economies, there appears to be a strong and positive association between export market growth and economic growth. Export market growth, for its part, has been closely linked to the larger order trade reorientation towards the European Union (EU). This reorientation, in turn, has been associated with product upgrading and investment, commonly undertaken by foreign investors. Given its proximity to the EU, the performance of Moldova's exports to the European Union (EU) has been disappointing. Moldova's exports are still concentrated in a few commodities and are still primarily destined for the CIS market. While macroeconomic stability has been largely achieved, formal and informal trade and investment barriers, including a high bribe tax, have limited much needed restructuring, domestic and foreign investment and quality upgrading. As this study suggests, the achievement of more sustainable export-led growth and poverty reduction will require policies that go beyond formal trade policies. Indeed, a more open trade regime must go hand-in-hand with a good business and investment climate.