Galactic
trade organization led by the
Neimoidians. They are used as a tool by
Senator Palpatine in the guise of
Darth Sidious to gain
leadership of the
Galactic Senate.
The Trade Federation controls many of the galactic trade routes within the
republic and charges independent traders and planetary
governments a fee for use of the trade routes under it's control, these
taxes are used by
Darth Sidious to motivate the Trade Federation into blockading the
planet. By pushing the Trade Federation into escalating the blockade to a full scale
invasion, the dark lord of the
sith, (having carefully orchestrated the escape of
Queen Amidala of
Naboo to
Coruscant), presses the Queen into calling for a vote of "no confidence" in the Senate's Supreme
Chancellor Valorum due to his hesitance to immediatley have the Trade Federation call off the invasion. This causes the Senate to vote for a new Chancellor, and heads Senator Palpatine (Darth Sidious) off on his rise to
power and the creation of the
Empire.