The Third Anglo-Dutch War primarily involved maritime and colonial rivalry between England and the Dutch Republic, marked by various naval battles and colonial skirmishes. In the outcome of the Treaty of Westminster, signed in 1674, the Dutch ceded New Netherland, which included the strategic settlement of New Amsterdam that would later become New York City, to England. This territory had originally been established by the Dutch in the early 17th century, focusing on trade and agriculture, but English expansionism prompted conflict and acquisition efforts.

The negotiations for the Treaty of Westminster were complex, influenced by previous war outcomes and economic considerations. The war had been costly for both nations, and the peace settlement reflected a mutual desire to stabilize international trade and colonial possessions. The cession was part of a broader context where England sought to consolidate its hold on North America, aiming to further displace Dutch influence and secure significant trade routes in the Atlantic.

The transfer of New Netherland marked a pivotal moment in colonial American history. With the English steering control over this area, it expanded their territorial claims, leading to increased settlement and economic development, effectively laying foundations that would ensure English dominance in the region for generations. The shift also laid the groundwork for cultural and demographic changes in New York and its surroundings, as Dutch settlers integrated into the English colonial framework. Additionally, this cession brought into play a variety of international diplomatic relations between European powers in the realm of trade and colonial governance.