The U.S. established diplomatic relations with Egypt in 1922, following its independence from protectorate status under the United Kingdom. The U.S. and Egypt share a strong partnership based on mutual interest in Middle East peace and stability, economic opportunity, and regional security. Promoting a stable, prosperous Egypt, where the government protects the basic rights of its citizens and fulfills the aspirations of the Egyptian people, will continue to be a core objective of U.S. policy.
U.S. Assistance to Egypt
U.S. assistance to Egypt has long played a central role in Egypt’s economic and military development, and in furthering the strategic partnership and regional stability. Since the 1979 Egypt-Israel Treaty of Peace, the U.S. has provided Egypt with what now totals over $40 billion in military and $30 billion in economic assistance.
Bilateral Economic Relations
Egypt has one of the most diversified economies in the Middle East. U.S. exports to Egypt include wheat and corn, mineral fuel and oil, machinery, aircraft, and iron and steel products. U.S. imports from Egypt include apparel, natural gas and oil, fertilizers, textile coverings, and agricultural products. Under the Qualifying Industrial Zone agreement, the U.S. waives duties on imports from Egypt if the value includes 10.5% Israeli content; this program is meant to promote stronger ties between the region's peace partners. Total two-way trade in goods between the U.S. and Egypt was $5.0 billion in 2016. Egypt and the U.S. signed a Bilateral Investment Treaty in 1982 to promote and facilitate investment between our countries. Egypt and the U.S. have signed a trade and investment framework agreement, a step toward creating freer trade and increasing investment flows. In 2016, the IMF approved a $12 billion three-year loan for Egypt under its Extended Fund Facility program in support of Egypt’s reform program. In June 2019 the IMF concluded a positive review and the Board disbursed $2 billion, bringing the total disbursement to 8.1 billion.