Consequences
According to The Continuum Political Encyclopedia of the Middle East:
"The normalization of relations went into effect in January 1980. Ambassadors were exchanged in February. The boycott laws were repealed by Egypt's National Assembly the same month, and some trade began to develop, albeit less than Israel had hoped for. In March 1980 regular airline flights were inaugurated. Egypt also began supplying Israel with crude oil".
According to Kenneth Stein in " Heroic Diplomacy: Sadat, Kissinger, Carter, Begin, and the Quest for Arab-Israeli Peace":
"The Accords were another interim agreement or step, but negotiations that flowed from the Accords slowed for several reasons. These included an inability to bring the Jordanians into the discussions; the controversy over settlements; the inconclusive nature of the subsequent autonomy talks; domestic opposition sustained by both Begin and Sadat and, in Sadat’s case, ostracism and anger from the Arab world; the emergence of a what became a cold peace between Egypt and Israel; and changes in foreign policy priorities including discontinuity in personnel committed to sustaining the negotiating process".
The time that has elapsed since the Camp David Accords has left no doubt as to their enormous ramifications on Middle Eastern politics. Most notably, the perception of Egypt within the Arab world changed. With the most powerful of the Arab militaries and a history of leadership in the Arab world under Nasser, Egypt had more leverage than any of the other Arab states to advance Arab interests. Egypt was subsequently suspended from the Arab League from 1979 until 1989.
When the Camp David accords were signed, Jordan's King Hussein saw it as a slap to the face. When Sadat volunteered Jordan's participation in deciding how functional autonomy would work and, more specifically, effectively said that Jordan would have a role in how the West Bank would be administered. Like the Rabat Summit Resolution, the Camp David Accords circumscribed Jordan's objective to reassert its control over the West Bank. Focusing as it did on Egypt, the Carter administration accepted Sadat’s claim that he could deliver Hussein. However, with a number of Arab world opposition building against Sadat, Jordan could not risk accepting the Accords, without the support from powerful Arab neighbours, like Iraq, Saudi Arabia, and Syria. Hussein consequently felt diplomatically snubbed. One of Carter's regrets was allowing Sadat to claim that he could speak for Hussein if Jordan refused to join the talks, but by then the damage was done to the Jordanians.
The Camp David Accords also prompted the disintegration of a united Arab front in opposition to Israel. Egypt's realignment created a power vacuum that Saddam Hussein of Iraq, at one time only a secondary power, hoped to fill. Because of the vague language concerning the implementation of Resolution 242, the Palestinian problem became the primary issue in the Arab-Israeli conflict immediately following the Camp David Accords (and arguably, until today). Many of the Arab nations blamed Egypt for not putting enough pressure on Israel to deal with the Palestinian problem in a way that would be satisfactory to them. Syria also informed Egypt that it would not reconcile with the nation unless it abandoned the peace agreement with Israel.
Lastly, the biggest consequence of all may be in the psychology of the participants of the Arab-Israeli conflict. The success of Begin, Sadat, and Carter at Camp David demonstrated to other Arab states and entities that negotiations with Israel were possible—that progress results only from sustained efforts at communication and cooperation. Despite the disappointing conclusion of the 1993 Oslo Accords between the PLO and Israel, and even though the 1994 Israel-Jordan Treaty of Peace has not fully normalized relations with Israel, both of these significant developments had little chance of occurring without the precedent set by Camp David.
Read more about this topic: Camp David Accords
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