Star Wars | Who Exactly Were The Trade Federation?

'This Is Getting Out Of Hand!'

By Culture SlatePublished 2 years ago • 5 min read

The trade federation was an essential organism in the Prequel Trilogy. It was a vastly different enemy from the Empire and the stormtroopers of the Original Trilogy, and it was what brought something different to those films. It played a key role in the unfolding events of Episodes I, II, and III, serving as a manipulative element of Chancellor Palpatine, also known as Darth Sidious, for his final plan of Order 66 and the transformation of the Republic into the Galactic Empire. Once the plan was completed, the Federation was stripped of all power and ceased to exist as such, annexing itself to the Empire. However, it already had its history, existing long before the events of The Phantom Menace.

The interstellar transportation and trade conglomerate was founded 350 years before the Battle of Yavin (BBY) as part of a Republic plan to economically strengthen the areas farthest from its influence. In this way, free-tax trade areas were established that began to encourage the growth and movement of such regions. However, this attracted a multitude of pirates who stole more and more merchandise. This is how different trade, manufacturing, financial and transportation organizations joined together to form the so-called Trade Federation. This was to protect the trade caravans from pirate attacks, solve internal factional disputes, and be a front to promote mercantile interests.

Over time, the Federation of Commerce grew in power, infrastructure, and prestige, reaching an important fleet of ships and a seat in the Senate of the Republic. It took advantage of its status in the star systems it frequented, charging expensive taxes to planets in exchange for their protection and forcing any entity not associated with the Federation to pay a toll for its passage on the trade routes.

Thus, the power friction between the Republic and the Federation grew over time until in 33 BBY when it was decided to hold a meeting on Planet Eriadu to put an end to the disputes. However, the conference was interrupted when a separatist group known as the Nebula Front made an attempt on the life of the then Chancellor Valorum. The latter failed but they did manage to assassinate the directorate of the Federation. This left the way open for a character already present in the Prequels to appear and take command in the vacuum of power that remained: the Neimoidian Nute Gunray.

Neimoidians are known for their brutal upbringing from an early age, so only the greediest would survive their first years of life. This makes them formidable beings in trade. Their leadership made the Trade Federation grow in power like never before. Their goal became to occupy all the trade routes of the Republic and to evade any taxes. To this end, they were gaining allies within the Senate and further consolidating their position. But the main reason for Gunray's and the Trade Federation's rise was their alliance with the Dark Lord of the Sith, Dark Sidious. In exchange for obeying any of his orders, they would be rewarded with power and money. Thus, apart from their ships and political influence, they secretly built a droid army. Sidious' manipulation and pursuit of the Federation's absolute monopoly of trade led to a key event in their history: the invasion of Naboo.

The Prop 31-814D Law, passed by Valorum before the end of his term, involved a tax burden on the previously so-called "Free Trade Zones" and was the pretext to invade Naboo. After the unsuccessful attempt shown in The Phantom Menace, Viceroy Gunray was arrested, and Valorum was stripped of his post as Chancellor and that role given to Palpatine.

Viceroy Gunray evaded conviction after multiple trials and retained his position as head of the Trade Federation. After the Naboo attack and to calm the Republic, the Neimoidians withdrew their fleet and droid armies to their Purse Worlds. However, although the routes were freed from the Federation for a time, the Federation continued to develop its plans and manufactured army droids under the surface of Geonosis.

Ten years after the events of Naboo, the Federation would play an essential role in the Clone Wars that would lead to their end. Publicly the Federation claimed to be neutral in the galactic situation and even declared its distance from Gunray, given his extremist ideas, but none of these things were true: the commercial Federation joined the Confederation of Independent Systems, being their main military contributor during the events of the Clone Wars and Gunray remained to be the Viceroy. In this way, and influenced by both Palpatine and the Separatists, they invaded systems in their battle against the Republic, until losing it with the defeat of the Commanding Officer in the Separatist armed forces, General Grievous, at the hands of Obi-Wan Kenobi. Later, through the activation of Order 66 by the newly self-appointed Emperor Sidious and the slaughter of Gunray and his directorate at the hands of Darth Vader on Mustafar, the Trade Federation would cease to exist as such, being absorbed by the Empire.

From being an organization created to grow economically and defend the galaxy's far reaches, the Trade Federation became a mere instrument for Palpatine's ultimate plans in his rise to power.

Written by Alex Leibovich

Source: Wookieepedia [1], [2], [3]

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