The pretext for the treaty was the Second Italo-Abyssinian War that started in 1935. King Farouk feared that the Italians would also invade Egypt. The treaty wasn't welcomed by nationalists like the Arab Socialist Party who wanted full independence for Egypt. It ignited a wave of anti-British and anti-Wafdist demonstrations. Neither did the treaty resolve the question of Sudan. The Anglo-Egyptian Condominium Agreement of 1899 stated that Sudan should be jointly governed by Egypt and the UK. Despite that agreement, real power was in British hands and the 1936 treaty expressively favoured maintaining the status quo.
The new Wafd government unilaterally abrogated the treaty in 1951. Three years later, the UK agreed to withdraw their troops. The withdrawal was finalized in July 1956 and thus seen as giving Egypt full independence. On 26 July 1956 Egypt nationalized the Suez Canal after the withdrawal of an offer by Britain and the United States to fund the building of the Aswan Dam, precipitating the Suez Crisis.