Egypt was an ally under Mubarak. The new government is controlled by the Muslim Brotherhood. So Obama was right — that government is NOT an ally.
MNNA status was first created in 1989 when section 2350a, otherwise known as the Nunn Amendment, was added to Title 10 (Armed Forces) of the United States Code by Congress. It stipulated that cooperative research and development agreements could be enacted with non-NATO allies by the Secretary of Defense with the concurrence of the Secretary of State. Initial MNNAs were Australia, Egypt, Israel, Japan, and South Korea.
In 1996 major non-NATO allies received additional military and financial benefits when section 2321k was added to Title 22 (Foreign Relations) of the U.S. Code (also known as section 517 of the Foreign Assistance Act of 1961), which added MNNAs to many of the same exemptions from the Arms Export Control Act that were enjoyed by NATO members. It also authorized the President to designate a nation as an MNNA thirty days after notifying Congress. When enacted, the statute designated Australia, Egypt, Israel, Japan, Jordan, New Zealand, and South Korea as major non-NATO allies.
The State Dept. flack today was trying not to contradict Zero, and claimed that Egypt was not an ally because we don’t have a treaty of alliance with them. Then she tried to pawn it off to the White House for clarification. One reporter pointed out that Egypt has offically been declared a Major Non-Nato Ally for decades, which lets them fast track arms purchases, and have those priveliges been revoked? She had to admit, no, they haven’t. So they are still an ally? Er, well yes, they are an ally.
Priceless.