Jay's Treaty emerged from the unresolved tensions between the newly independent United States and Great Britain following the American Revolutionary War. Issues such as British interference in American trade, the presence of British troops in the Northwest Territory, and outstanding debts owed by American citizens to British merchants created significant friction between the two nations. In an effort to alleviate these tensions, President George Washington appointed John Jay, the chief justice of the United States, to negotiate with the British government in hopes of finding a diplomatic solution. Negotiations began in 1794, culminating in the signing of the treaty on November 19 of the same year in London.

The main provisions of Jay's Treaty included the withdrawal of British troops from the Northwest Territory, the establishment of a commission to resolve lingering border disputes, as well as an agreement to pay off debts owed before the Revolutionary War. The treaty also facilitated better trade relations between the two nations. However, it was met with significant domestic controversy. Critics, including prominent figures like Thomas Jefferson and James Madison, argued that the treaty favored British interests over American independence. Supporters felt it was a necessary step for peace and economic stability.

The ratification process was intense, with opposition reflected in public protests and heated congressional debates. Ultimately, despite its contentious nature, the Senate ratified the treaty by a narrow margin. Although Jay's Treaty did not resolve all the disputes between the United States and Great Britain, it laid the groundwork for future diplomatic relations and helped to avoid another potential war, significantly shaping American foreign policy moving forward.