Two of the Federation-aligned species, the Caarites and the Filordi, feared the consequences of a possible failure in the Naboo operation, so they left to create their own, similar organization, the Metatheran Cartel. The Cartel tried to take control of the business in planet Cularin from the Federation's hands, by exposing the Federation's unfriendly policies and by competing with them. The Cartel also invited the Sullustans and other species to operate in the system.
The Federation, who wanted to concentrate their resources in Naboo, hired local pirates to attack the Cartel's ships, but this proved unsuccessful. However, the Cartel was losing money and its tactics angered the other species allied with it. The Cartel then attempted to buy off the pirates, which at first did not work. When the Trade Federation lost the Battle of Naboo, however, many believed they would lose their trade franchise. The Cularin pirates shared in this belief, and being convinced they would not be paid, switched sides, effecting ending the war.
The Trade Federation lost its monopoly in Cularin and was completely driven out of the system. The Cartel then reduced their own business to appraise the demand in the system, and modified its policies, in many aspects becoming more similar to the Federation.
As soon as the Cartel had strengthened its hold on Cularin, it turned against the piracy using patrol ships. They could not, however, stop the piracy altogether.