The Jay Treaty is an essentially trade agreement designed to resolve unresolved issues that threatened war, such as the maintenance of British border posts on American territory after the Treaty of Paris (1783), the Native American quarrels over the Ohio Valley, and American anger at the British confiscation of shipping. Jay`s contract also excludes natives from paying tariffs on goods transiting the border. The negotiations and the final agreement marked the resumption of arbitration in international relations, with commissioners appointed to resolve the open border problems caused by the peace of 1783. Jay`s treaty contained provisions that many thought were humiliating toward the United States, but President Washington sent him to the Senate for formal approval. The president and his supporters argued that Jay had secured the best possible deal and that the nation could not afford another war with Britain. Opponents of the treaty, members of the Senate`s democratic and Republican anti-government minority, called for a renegotiation of the treaty, in part because it did not protect U.S. trade agreements with France. The president`s allies in the Federalist majority of the Senate rejected this proposal and narrowly approved the treaty. Jay Treaty (November 19, 1794), an agreement based on the ptagonisms between the United States and Great Britain, created a foundation on which America could build a healthy economy and ensure its commercial prosperity. The precarious state of the country`s economy and its limited means of imposing its authority through the use of military force have put the United States in an embarrassing position of not being able to assert itself in the theatre of international diplomacy. Perhaps most damaging was his inability to ensure that the British complied with the provisions of the Treaty of Paris or to negotiate a satisfactory trade agreement with the British Empire.
Jay`s contract with the British Foreign Minister, William Wyndham Grenville, fostered England`s economic and military power.