The Potential Impact of the Floating Exchange Rate Policy on the Egyptian Trade Balance, Agricultural Trade and Food Trade Dr. Ahmed Qadry M. Bahloul  Faculty of Technology and Development, University of Zagazig, Zagazig, Egypt. and, The University of Umm Al-Qura, the Holly Mecca, KSA. Abstract Egypt has a long history of problems regarding its exchange rate with US Dollar. Egypt decided to float its currency against the foreign currencies including the US Dollar on 3/11/2016. There is a great controversy among the economists concerning the policy impacts of the new policy. The research question was what is the expected impact of floating the Egyptian pound exchange rate on the trade balance, agricultural trade balance, and food trade balance? The research paper aims at studying the possible impact of exchange rate policy and the of total trade balance, agricultural trade balance, and food trade balance. Two econometric methods used for the estimation of export and import elasticities, the Feasible generalized least squares (FGLS) estimator and the Vector Error Autoregressive Models (VAR). The estimated Marshall-Lerner condition ranged from 1.72 to 1.92 for the Egyptian total trade, while ranged from 1.44 to 1.46 for the agricultural trade, while it is ranged from 0.64 to 2.09 in the case of food trade. The results indicated the validity of the Marshall- Lerner condition (MLC) for the Egyptian total trade, agricultural trade, and food trade. The new Egyptian floating exchange rate policy associated with institutional reforms will probably has positive impacts on the Egyptian trade, the agricultural trade, and the food trade. JEL classifications: F4, Q17, Q18