The British Crown formally recognized American independence and ceded most of its territory east of the Mississippi River to the United States.
What was Treaty of Paris?
Two crucial provisions of the treaty were British recognition of U.S. independence and the delineation of boundaries that may lead to expansion.
It led to an opportunity to build a lucrative trade alliance with the new nation without the administrative and military costs of running and defending the colonies. As a result, Treaty of Paris terms were very favorable to the United States with Great Britain.
Hence , The British Crown formally recognized American independence and ceded most of its territory east of the Mississippi River to the United States.
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