Abstract: The objective of this study was to evaluate the effect of trade liberalization on performance of private sector in Rwanda and in Nyagatare district in particular during 2015-2017. The collected data was analyzed through SPSS software from 44 respondents selected among 120 members of PSF Nyagatare. For data analysis, SPSS21 was used for descriptive statistic and correlation analysis. The findings for the first objective shows the overall of 3.03 and standard deviation of .547 indicating that trade liberalization plays an important role on the performance of private sector in Nyagatare district during the period of study. The findings for the second objective indicated the mean 4.15 and .481 standard deviation as high mean. That means that the effectiveness of private sector in Nyagatare district depends on trade liberalization policies implemented and followed by PSF members in their doing business of importing or exporting products with neighboring countries.