In Star Wars: Episode I: The Phantom Menace, the Trade Federation blockades Naboo at the start of the film. The opening crawl says the reason for this is due to taxes the Republic is charging. However, it's not really clear to me how this would help them with a taxation issue. Especially since this blockade is apparently secret. When Queen Amidala brings the issue before the Republic Senate, the Trade Federation denies it, so they want the blockade and subsequent invasion to be a secret. If they're blockading due to taxes, wouldn't they publicize this, instead of keeping it a secret? So my questions are, why did the Trade Federation blockade Naboo, and why did they keep it a secret?
Answer
The plan was to invade Naboo from the beginning, the blockade was merely an excuse for the presence of the battleships. This is what Qui-Gon and Obi-Wan found in the hangar of the federation battleship while they were escaping assassination.
QUI-GON: Battle droids?
OBI-WAN: It's an invasion army.
QUI-GON: It's an odd play for the Trade Federation. We've got to warn the Naboo and contact Chancellor Valorum. Let's split up. Stow aboard separate ships and meet down on the planet.
As for the issue which brings Amidala before the Republic Senate, it's that the blockade was in fact an invasion.
AMIDALA: Honorable representatives of the Republic, distinguished delegates, and Your Honor Supreme Chancellor Valorum, I come to you under the gravest of circumstances. The Naboo system has been invaded by force. Invaded...against all the laws of the Republic by the Droid Armies of the Trade...
LOTT DOD: I object! There is no proof. This is incredible. We recommend a commission be sent to Naboo to ascertain the truth.
The Trade Federation was hoping it would be too late for the senate to do anything if the invasion was complete before they were notified of it. Or, as a B plan, before the senate decide to assist the peoples of Naboo.
NUTE GUNRAY: The invasion is on schedule, My Lord.
DARTH SIDIOUS: Good. I have the Senate bogged down in procedures. By the time this incident comes up for a vote, they will have no choice but to accept your control of the system.
Naboo is a world rich in Plasma, and It would be a great asset for the Trade Federation. Damask Holdings, the plasma mining company owned by Darth Plagueis, was active on Naboo and that's how Sidious was recruited.
Finally, while the choice of Naboo is defensible on an economic standpoint, it was selected by Darth Sidious because the resulting crisis would propels his Palpatine alter-ego to the chair of the Supreme Chancellor.
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