The United States and Egypt have a long and complex relationship, shaped by regional politics, economic interests, and strategic considerations. The United States established diplomatic relations with Egypt in 1922, following Egypt’s independence from its protectorate status under the United Kingdom.
Since then, the relationship has evolved through periods of cooperation and tension, influenced by key events such as the Suez Crisis, the Cold War, and the Arab-Israeli conflict. Today, the United States and Egypt share a strong partnership based on mutual interests in Middle East peace and stability, economic opportunity, and regional security.
Early Relations and the Nasser Era
Initially, the Egyptian Revolution of 1952 did not alter relations with the United States, which continued to send foreign aid. However, by 1956, the US was alarmed at the closer ties between Egypt and the Soviet Union. When Egypt recognized Communist China, the US ended talks about funding the Aswan Dam, a high-prestige project desired by Egypt. The dam was later built by the Soviet Union.
When Nasser nationalized the Suez Canal in 1956, the Suez Crisis erupted with Britain and France threatening war to retake control of the canal and depose Nasser. At the same time, the United States grew unwilling to support a foreign intervention against Egypt for fear of Soviet intervention. It also was opposed to European colonialism and worried that Western intervention in Egypt would weaken its authority to condemn the Soviet invasion of Hungary.
Using heavy diplomatic and economic pressure, the Eisenhower administration soon forced Britain and France to withdraw. That American pressure led to a temporary warming of Egyptian relations with the United States, but relations became strained again in the 1960s because Egypt purchased Soviet arms and refused to accept a US-brokered arms control agreement for the Arab-Israeli conflict, which led to the US selling M48A4 Mag'ach tanks and Douglas A-4 Skyhawk attack aircraft to Israel in 1965. The arms sale escalated tensions further, with Egypt expelling the Emergency Force and closing the Straits of Tiran.
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The Six-Day War ended with the Israel Defense Forces occupying most of the Palestinian territories, including the Gaza Strip and the Sinai Peninsula, which Egypt had occupied. On June 8, 1967, Egypt severed diplomatic relations with the US and expelled Americans in Egypt.
The Sadat Era and the Camp David Accords
After the death of Nasser, his more moderate successor, Anwar Sadat, opened backchannel negotiations with the Nixon administration for a peace agreement with Israel, but they stalled because of Israel's unwillingness to withdraw the IDF from the eastern bank of the Suez Canal. Instead, Egypt and Syria launched a surprise invasion of Israel starting the 1973 Yom Kippur War, and Egypt rejected a joint American-Soviet ceasefire proposal.
After the war, Egyptian foreign policy began to shift as a result of the change in Egypt's leadership from the fiery Nasser to the much more moderate Anwar Sadat (October 1970) and of the emerging peace process between Egypt and Israel. Sadat realized that reaching a settlement of the Arab-Israeli conflict was a precondition for Egyptian development.
After a seven-year hiatus, both countries re-established normal diplomatic relations on February 28, 1974. At the same time, the United States engaged in "shuttle diplomacy" to negotiate disengagement agreements between the Arab world and Israel. Encouraged by Washington, Sadat opened negotiations with Israel that resulted most notably in the Camp David Accords, which were brokered by US President Jimmy Carter, and peace with Israel in a historic peace treaty in 1979.
As an incentive for Egypt to sign the accords, Washington promises substantive aid packages for Egypt, including military aid that continues today. Following the peace treaty with Israel, Egypt between 1979 and 2003 acquired about $19 billion in military aid, making it the second-largest non-NATO recipient of US military aid, after Israel. Egypt received about $30 billion in economic aid within the same time frame.
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The Mubarak Era and Evolving Relations
Sadat was reviewing a military parade honoring the Crossing when he was assassinated in 1981. His successor, Hosni Mubarak, was an air force general. Although critics have always questioned his abilities, he has been able to best all of his opponents. Mubarak’s policy essentially split the difference between Nasser and Sadat.
American-Egyptian relations under Mubarak had evolved to move beyond the Middle East peace process towards an independent bilateral friendship. Egypt strongly backed the US in its war against international terrorism after the September 11 attacks of 2001 but refused to send troops to Afghanistan during and after the war.
The 2011 Revolution and its Aftermath
During the 2011 Egyptian Revolution, top US government officials urged Egyptian President Hosni Mubarak and his government to reform, refrain from using violence, and respect the rights of protesters such as those to peaceful assembly and association. Nevertheless, on September 11, 2012, (the 11th anniversary of the September 11 attacks) Egyptian protesters stormed the US embassy in Cairo, tore down the American flag, and replaced it with a flag with Islamic symbols to mock the Americans after an anti-Islamic movie denigrating the Islamic prophet, Muhammad, was shot in the United States and released on the internet. Morsi refused to condemn the attack, instead calling on the United States to apologize for allowing the film to be posted.
Ties between the countries temporarily soured during the overthrow of Egyptian President Mohamed Morsi on July 3, 2013, after a massive uprising against him. The Obama administration denounced Egyptian attempts to combat the Muslim Brotherhood and its supporters, canceled future military exercises, and halted the delivery of F-16 jet fighters and AH-64 Apache attack helicopters to the Egyptian Armed Forces.
Popular sentiment among secular Egyptians towards the United States has been negatively affected by conspiracy theories claiming that the Americans had assisted the unpopular Muslim Brotherhood in attaining power and by the Obama administration's policy of tolerance toward the Muslim Brotherhood and Morsi.
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Contemporary Relations and Challenges
The United States and Egypt share a strong partnership based on mutual interests in Middle East peace and stability, economic opportunity, and regional security. Significant cultural and educational ties and assistance further enhance the strategic partnership. Since 1978, the United States has provided Egypt with over $50 billion in military and $30 billion in economic assistance.
Total bilateral trade in goods between the United States and Egypt stood at $9.1 billion in 2021, the highest level ever. Egypt is the United States’ largest export market in Africa. Exports to Egypt include wheat and corn, mineral fuel and oil, machinery, aircraft, and iron and steel products. Imports from Egypt include apparel, natural gas and oil, fertilizers, textiles, and agricultural products.
Egypt and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organization. Egypt also is a Partner for Cooperation with the Organization for Security and Cooperation in Europe, an observer to the Organization of American States, a partner in the NATO Mediterranean Dialogue, and a non-party state to the International Criminal Court.
Despite pushing Egypt into a new era of tyranny, the United States continues to support el-Sisi, providing Cairo with roughly $1.3 billion annually in military aid. On the campaign trail, Joe Biden stated he would end the “blank checks” provided to el-Sisi under Donald Trump. However, once in office, Biden and his team have continued to support Egypt’s strongman.
American firms are active in most sectors of the Egyptian economy, including oil and gas exploration and production, renewable energy technologies, financial services, manufacturing, construction, telecommunications and information technology, and the restaurant and hospitality industry. FDI to nearly $24 billion.
The U.S. Cuts Economic and Military Aid to Egypt
Key Considerations in the US-Egypt Relationship
- Regional Stability: Egypt tries to present itself to the United States as a beacon of Middle East stability.
- Counterterrorism: Cooperation on counterterrorism efforts is a significant aspect of the relationship.
- Economic and Political Reform: There is much debate in Washington now about what to do with Egypt. There is a sense that the relationship has run its course over the last thirty years. Its foundations are either weak or obsolete.
- Human Rights: officials and some Members of Congress have frequently criticized Egypt's record on human rights and democratization.
The United States maintains its support for Hosni Mubarak until the last minute. Upon entering the White House in 2017, President Trump embraced el-Sisi and authoritarians across the Middle East in general. Trump famously referred to el-Sisi as his “favorite dictator” and showered the regime with weaponry, approving over $5.3 billion in arms sales to Cairo while in office.
After Trump, Biden entered the White House having pledged “no more blank checks for Trump’s ‘favorite dictator.’” However, his policies quickly told a different story. The Biden administration reaffirmed its “steadfast commitment” to Egypt’s security while also praising Cairo for its role in advancing regional “stability.” Though the administration did withhold a symbolic amount of $130 million from Egypt’s $1.3 billion annual aid package, this was dwarfed in comparison to the weapons sales approved by Biden to Cairo.
Under el-Sisi, the military has considerably increased its control over Egypt’s political, economic, and societal landscapes. Repression inside Egypt continues to accelerate at an alarming rate and is increasingly going transnational as el-Sisi seeks to crush dissenting voices, even inside the United States.
As Richard Sokolsky and Andrew Miller argue, “For too long, the United States has allowed the Egyptian government to treat security assistance as an entitlement owed for making peace with Israel.” The strategic interests of Egypt and Israel have increasingly converged, especially following the Arab uprisings and growing shared fears over preserving regional status quo.
Egypt relies on the Nile River (see Figure 4) for hydroelectricity, agriculture, and most of its domestic water needs, and thus treats restrictions to the flow of the Nile from upstream countries as an existential issue. The government has been at odds with Nile Basin countries to Egypt's south that seek to revisit colonial-era treaties governing the allocation of Nile waters.
For FY2020-FY2023, the Biden Administration and Congress reprogrammed or withheld a total of $750 million in FMF originally designated for Egypt based on relevant provisions in appropriations law.
Bilateral Trade Between the U.S. and Egypt (2021)
| Category | Value (USD) |
|---|---|
| Total Bilateral Trade | $9.1 Billion |
| U.S. Exports to Egypt | - |
| U.S. Imports from Egypt | - |
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