The treaty, forged between the Galactic Republic and the Hutt Clan, came about during the Clone Wars through the agency of Jabba the Hutt, a prominent crime lord.
The agreed-upon terms of the treaty stipulated that the Hutt Clan would abstain from direct involvement in the war's conflicts. In return, the Galactic Republic pledged to refrain from initiating hostilities within Hutt territories. The Republic, however, failed to fully appreciate the legal acumen of the lawyers retained by the Hutt Clan. Consequently, the treaty underwent amendments that subtly granted the Hutts access to information regarding Republic affairs, while simultaneously hindering the Republic's ability to scrutinize matters within Hutt Space.
The act of formalizing a treaty with a criminal syndicate inadvertently granted legitimacy to the Hutts' enterprises and provided them with a foothold within the Core Worlds.
Initially, Jedi Master Obi-Wan Kenobi undertook the negotiation of the treaty with Jabba. Subsequently, Senator Padmé Amidala successfully secured the treaty's ratification by exposing a scheme orchestrated by the Confederacy of Independent Systems. This plot involved the kidnapping of Jabba's son and an attempt to falsely implicate the Jedi Order in the crime, with the goal of framing his actions.