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The Trade Federation is a fictional organization in the Star Wars universe at the time of the Galactic Republic. It appears in the franchise's three prequel movies and the Star Wars Expanded Universe. In the Star Wars franchise, The Trade Federation was able to maintain a sizable monopoly on interstellar trade and held considerable sway in the fictional government of the Star Wars universe.
Ten years before the film Star Wars Episode I, a space pirate named Iaco Stark proclaimed that there was a shortage of the healing substance called bacta when there in fact was none, and began selling the product at an inflated price, cutting in on the Trade Federation's profits (which were almost as ridiculous). In response, the Trade Federation asked for aid from the Republic. Senator Ranulph Tarkin of Seswenna Sector (the uncle of Grand Moff Tarkin) recruited the entire military of planet Eriadu to help fight the threat. In response, the Jedi Order sent a few of its members to aid in the fight as generals. The Battle of Troiken began the conflict, followed by the five battles of planet Qotile. The first four battles were believed to be draws, but the Fifth Battle of Qotile was a victory for the Republic. The Stark Commercial Combine was dissolved after that battle and Iaco Stark escaped into the underbelly of the Outer Rim.
Shortly before the Battle Of Naboo the Trade Federation tried to colonize Alaris Prime which was one of Kashyyyk's moons. They had many battles with the native Wookiee and one battle with Gundarks. In the end every one of their bases on Alaris Prime was destroyed by the native Wookiee with the help of Qui-Gon Jinn.
Shortly before the time period of Star Wars Episode I: The Phantom Menace, Nute Gunray ascended to the position of viceroy of the Trade Federation with Rune Haako as his chief lieutenant. In The Phantom Menace, Gunray was manipulated into blockading and subsequently invading the planet Naboo by the shadowy Darth Sidious, who assured him the Senate would take no action against him. Nute sent an invasion force down to Naboo. The invasion forces leader OOM-9 and the Battle Droid army took over many cities like Harte Secur, and eventually the capital city of Theed. Gunray tried to force Queen Amidala of Naboo to sign a treaty which would legalize the invasion, but she escaped, and after allying herself with the native Gungans, Amidala captured Gunray himself and ended the invasion which would become known as the Battle of Naboo. Gunray and Haako were put on trial for their crimes, but due to the corruption of the Republic at the time, they were not punished and Gunray retained his position as viceroy.
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