We learn in the opening crawl of The Phantom Menace that the Trade Federation has set up a blockade around Naboo in response to taxation of trade routes. TheThe opening crawl states:
Queen Amidala: "HonorableHonorable representatives of the Republic, I come to you under the gravest of circumstances. The Naboo system has been invaded by the droid armies of the Trade…"Trade…
Lott Dod: "II object! There is no proof! This is incredible. We recommend a commission be sent to Naboo to ascertain the truth."
Senator Teem: "TheThe Congress of Malastare concurs with the honorable delegate from the Trade Federation. A commission must be appointed."
"TheyPanaka: They need her to sign a treaty to make this invasion of
theirs legal. They can't afford to kill her."
Bibble: "...how will you explain this invasion to the Senate?"
Nute Gunray: "TheThe Naboo and the Federation will forge a treaty that will legitimize our occupation here. I've been assured it will be ratified by the Senate."
Queen Amidala: "II will not co-operate."
Nute Gunray: "NowNow, now, your Highness. You are not going to like what we have in store for your people. In time, their suffering will persuade you to see our point of view."