This chapter argues that when properly and normatively understood, trade policy, poverty reduction, and democratic progress are related in a "virtuous circle." With the right sorts of policies and institutions, poor (and rich) countries can produce and export in ways that, on the one hand, reduce poverty and inequality and, on the other hand, broaden and deepen democracy. Improved standards of living and democratic quality, in turn, result in more economic productivity and better trading opportunities. © Springer Science+Business Media B.V. 2013. All rights are reserved.