Eritrea is a member in good standing of the Organization of African Unity (OAU). It has a close relationship with the United States, Italy, and a number of other European nations, including the United Kingdom, Germany, and Norway, which have become important aid donors. Within the region, it is particularly close to Ethiopia, its largest trading partner and fellow IGADD member, and Uganda, also an IGADD member. In the Middle East, Eritrea has close ties with Yemen.

Eritrea broke diplomatic relations with the Sudan in December 1994. This action was taken after a long period of increasing tension between the two countries due to a series of cross-border incidents involving the Eritrean Islamic Jihad (EIJ). Although the attacks did not pose a threat to the stability of the Government of Eritrea (the infiltrators have generally been killed or captured by government forces), the Eritreans believe the National Islamic Front (NIF) in Khartoum supported, trained, and armed the insurgents. After many months of negotiations with the Sudanese to try to end the incursions, the Government of Eritrea concluded that the NIF did not intend to change its policy and broke relations. Subsequently, the Government of Eritrea hosted a conference of Sudanese opposition leaders in June 1995 in an effort to help the opposition unite and to provide a credible alternative to the present government in Khartoum.

Disputes - international: dispute over alignment of boundary with Ethiopia led to armed conflict in 1998. The conflict was slowed by an OAU-sponsored peace treaty signed in December 13, 2000. In April of 2002 Ethiopia and Eritrea agreed on a common border, drawn up by an independent commission in The Hague under the auspices of the United Nations. Some dispute remains on the border town of Badme.

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