Curious as usual, we here at Zepol
wanted to learn how Egypt’s political revolution has affected trade relations with the United States in the past year. No doubt, Egypt’s changing political and economic environments have impacted world trade, for better or worse. Furthermore, the upcoming election is a pivotal point in determining where future trade relations are headed.
The top U.S. imports from Egypt include crude oil, apparel, and textile floor coverings. In 2011, U.S. imports of oil from Egypt took a drastic drop, as control of Egypt’s oil production was murky. With the country becoming more stable in 2012, imports of oil have gradually increased. Imports of apparel items from Egypt, on the other hand, showed an increase during the height of the revolution in the past year. Overall, imports from Egypt for the first quarter of 2012 are at a five-year record high.
On the export side, the U.S. drastically increased the amount of cereals, meats, and aircraft headed to Egypt last year, while products such as vehicles and machinery showed a dip. Starting in the first quarter of 2011, overall exports headed to Egypt slid for four straight quarters. The first quarter of 2012 showed a change of pace and posted an increase in exports destined for Egypt.
Below is a graph illustrating U.S. trade with Egypt. The most recent trend shows the trade balance narrowing as Egypt prepares for a momentous election.