Like its beginning, the end of the War of 1812 much depended on what transpired in Europe. With Napoleon defeated, the British could siphon their forces off to North America. This meant invasion and possible defeat of the United states. For Britain, this meant security for Canada and the possibility of a more favorable bargaining position in case of a peace settlement.
However, the negotiations that followed Napoleon's defeat also needed the presence of British troops. Thus, the entire army could not simply be transported to North America. Some warships had to stay behind to defend merchant vessels against privateers. As well, Britain had been at war with Napoleon for twenty years. Exhausted by the war, the idea of more fighting with the United States would soon become unpopular with the people. As a result, demand for peace negotiations appeared.
These negotiations took most of 1814. At first, the demands made by both sides were harsh and farfetched, ranging from the demand to hand over Canada to the United States, to the demand to create an Amerindian nation with permanent boundaries. Later on, both sides agreed to moderate their demands. However, the American government refused to surrender any American land. The British government was forced to comply, for the United States held naval superiority on the Great Lakes.
At last, on December 24, 1814, the Treaty of Ghent was signed. Not a single senator voted against peace. The treaty ended the war and obliged each side to return what it had conquered. Not only did the Treaty of Ghent conclude the War of 1812, but it marked the end of the last armed conflict between Britain and the United States. Never again did these two nations war with each other.
The only people to truly lose anything were the Amerindians south and west of the Great Lakes. They were not one of the parties to the peace treaty, and when the British withdrew from their land, most gave up the struggle for independence. The Amerindians could no longer resist the expanding American settlers, and they lost their only European ally. In 1816, the American government banned trade between Amerindians and anyone other than American merchants.
There were still national boundary problems, but these were resolved by three commissions in 1816. Most fishery problems were agreed upon by 1818. Even so, the echo of the war lasted as far as 1842, when the Treaty of Webster-Ashburton settled the last disagreements.