While the Federation struggled to find a common point of reference with the Sheliak, they had managed to smooth relations through the massive treaty Treaty of Armens, which ceded certain planets to the Corporate.
Over a century later, a dispute broke out between the Federation and the Sheliak over Federation colonists on Tau Cygna V, a planet in the Sheliak sphere of influence. Lieutenant Commander Data played the lead role in trying to convince the colonists to evacuate the planet before Sheliak colonists arrived. Captain Jean-Luc Picard used the third-party arbitration clause in the Treaty of Armens to resolve the conflict. The Sheliak agreed to wait three weeks for the colonists' evacuation. (TNG: "The Ensigns of Command")