Oct 3, 2012 4:45 AM EDT–In the year since Hosni Mubarak’s fall from power, there’s been no shortage of animosity between Israel and Egypt. Violence along the Sinai border and protests at Israel’s embassy in Cairo last year have created considerable tension between the two countries. Yet as this tension has mounted, Israel and Egypt have managed to maintain some semblance of economic partnership—something that analysts point to as a positive sign for bilateral relations.

Indeed, despite its harsh rhetoric and political misgivings about Israel, the Islamist-led government of President Mohamed Morsi has made it a priority to repair Egypt’s troubled economy. And by and large, Morsi and his allies appear reluctant to abandon a profitable trade relationship, which helps create jobs and allows Egypt a foothold into the U.S. market—especially for textiles.

Last month for instance, Egyptian Prime Minister Hisham Qandil said his country wanted to maintain a seven-year-old textile agreement with Israel. “A lot of people are making good business,” Qandil told Bloomberg News. “We want to make sure we do the right thing for them to flourish.”…Read More>>

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