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 1978, the United States has provided Egypt with what now totals over $50 billion in military and $30 billion in economic assistance.
Bilateral Economic Relations
Total two-way trade in goods between the U.S. and Egypt was $8.6 billion in 2019. 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, textiles, and agricultural products. Under the Qualifying Industrial Zone agreement, the United States waives duties on imports from Egypt if the value includes 10.5% Israeli content; this program promotes stronger ties between the region’s peace partners. 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. American firms are active in most sectors of the Egyptian economy, including oil and gas exploration and production, financial services, manufacturing, construction, telecommunications and information technology, and the restaurant and hospitality industry. Flows of U.S. direct investment to Egypt were $1.37 billion in 2019, bringing the accumulated long-term stock of U.S. FDI to nearly $24 billion.