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This article covers the Canon version of this subject.  Click here for Wookieepedia's article on the Legends version of this subject. 
This article is about the Free Trade Zones. You may be looking for the Free Trade sector.
"Supreme Chancellor, delegates of the Senate, a tragedy has occurred, which started right here with the taxation of trade routes, and has now engulfed our entire planet in the oppression of the Trade Federation!"
Senator Sheev Palpatine[1]

In the last decades of the Galactic Republic, the Free Trade Zones were untaxed trading areas within the territories controlled by the galaxy-spanning government. The Trade Federation often used them in their business.

Around 32 BBY, the Galactic Senate passed Prop 31-814D, making the Free Trade zones eligible for taxation.[2] The Trade Federation retaliated by invading the remote planet of Naboo with its private droid force, secretly backed up and manipulated by a malevolent Dark Lord of the Sith named Darth Sidious.[3]

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