When George Washington signed Jay's treaty in 1794, it opened up trade between the United States and Britain in both Canada and the British Isles. The agreement put the United States and Britain on a 'most favored-nation' basis and provisions were made for reciprocal trade agreements across the Canadian border. But the West Indies remained closed because the Senate rejected the clause because it provided only very limited access and a prohibition on exports of certain agricultural products from the United States.
In 1802, President Thomas Jefferson once again reached out to Britain to open talks regarding a reciprocal trade agreement and authorized Rufus King his minister to Britain to negotiate a deal. In a letter from Secretary of State James Madison to foreign minister Rufus King, we learn that the British government was surprisingly very open to a reciprocity agreement with the Untied States. Mr. Madison writes in his letter, "it was not foreseen that the British Government would so soon be disposed to hearken to it". Madison assures Rufus King that the President is supportive of the negotiations despite Mr. King's imprudent request to "to mingle demands which might embarrass each other". Regardless, things were going so well, that the President was leaving the negotiation at the discretion of his minister. Jefferson wrote, "The manner and degree in which the object is to be pursued he leaves to your discretion informed as it will be by indications on the spot; and guided by the general policy of the United States". Finally, Madison shares a word of confidence with Mr. King that the British government now seems to better understand "both its own interest, and the American character".
Ultimately, the British parliament rushed a reciprocity bill through congress and it was now up to the Americans to respond. In his second annual address, President Thomas Jefferson laid before congress the reciprocity act of the British Parliament "to authorize a mutual abolition of the duties and countervailing duties permitted under the treaty of 1794." Jefferson suggested that this showed a "spirit of justice and friendly accomadation", and urged Congress to consider consider whether this "would produce a due equality in the navigation between the two countries".
"It is with satisfaction I lay before you an act of the British Parliamant anticipating this subject so far as to authorize a mutual abolition of the duties and countervailing duties permitted under the treaty of 1794. It shows on their part a spirit of justice and friendly accommodation which it is our duty and our interest to cultivate with all nations. Whether this would produce a due equality in the navigation between the two countries is a subject for your consideration."Congress refused to act on it, citing issues such as the impressment of American soldiers and British military support for American Indians in the American frontier. Britain returned with more and more restrictions on American trade, and the two countries began their descent into war.
http://www.presidency.ucsb.edu/ws/index.php?pid=29444
http://www.americanforeignrelations.com/O-W/Reciprocity-1776-1830.html#ixzz4382zrQHG
http://founders.archives.gov/documents/Madison/02-03-02-0126
https://upload.wikimedia.org/wikipedia/commons/4/45/WestindiaviewofproposalWDaniell1802.jpg
Excerpt of the letter from James Madison to Rufus King
"The just claim of the United States to reciprocity in the intercourse with the British West India and other Colonies, has not been lost sight of by the President. But it was not foreseen that the British Government would so soon be disposed to hearken to it; and it was not thought prudent to mingle demands which might embarrass each other. We learn with much satisfaction that you have found the crisis so favourable for bringing this subject before the British Government, and I am authorized to assure you, that instead of crossing the views of the President in the steps you have taken in relation to it, you could not have more satisfactorily have [sic] promoted them. The manner and degree in which the object is to be pursued he leaves to your discretion informed as it will be by indications on the spot; and guided by the general policy of the United States, which having no objects not warranted by reason and right will rely as long as possible for the attainment of them on seasonable appeals to the interest, the justice and the friendship of others. In this policy the President most sincerely concurs, and sees therefore with particular pleasure every successful result of it. The late conduct of the British Government towards this Country seems to authorize some confidence that it begins to understand better both its own interest, and the American character. And you may on all proper occasions give assurances that it will find in the President a disposition to meet its friendly advances in a manner."
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