Foreign trade plays a great role to achieve economic development for almost all countries. However, Egypt being one of the developing countries is still suffering from the widening gap between increasing food imports and exports. This problem has subsequent effects on Egyptian agricultural trade balance and hence Egyptian balance of payments.
The study showed the relative importance of the total agricultural exports to, as compared to the total national exports, reached its highest level of 33 % in 1987, while its lowest level was about 8% in 1997. For the relative importance of the total agricultural imports to, as compared to the total national imports, it reached its highest level of 43% in 1990, while its lowest level was about 21% in 1998.
It appears that the average agricultural exports covered about 6% of the total national imports during the period 1986-1994, while it was about 4% during the period 1995-2003. The decrease of the coverage of national imports by the agricultural exports in second period compared with first period was due to the increase of the total national imports by nearly 17.34% (bases 1986-1994). The ratio of agricultural exports coverage established around 5% of the total national imports during the period 1986-2003. That was due to the fact that Egyptian governments in the last years reduced the national imports specially the food commodities, and slightly increase the national exports particularly the agricultural exports. 
The conduct study showed that the impact of EU liberalization on Egypt will have negative effect on agricultural balance of trade during the all study period 1995-2006. It appears that the agricultural trade deficit in Egypt fluctuated from € 411.41 million in 1995-1997 to € 193.09 million in 2004-2006. This result means that there is an improving of the deficit of agricultural balance trade with EU by increasing the export profits, and decreasing food imports. So, there are two important factors to reduce the gap between agricultural imports and exports. The first is increasing the agricultural export earnings through identifying the variable which influence export demand in the foreign markets. The second factor is reducing the domestic consumption and increasing the domestic production of cereals specially wheat.
The EU and Egypt established a greater liberalization of their trade in agricultural products of interest to both parties. Agricultural products originating in Egypt imported into the community shall be subject to the arrangements set out in the protocol of the agreement.