Since Queen Amidala never mentions the senate in this scene, the first two lines of the above dialogue are incoherent and should have been cut in your fan edit.
Eh, I don’t think so. She mentions that the Chancellor (of the Senate) has sent ambassadors to command them to settle their dispute. It seems appropriate to hear one of them say something about the Senate not allowing them to do what they’re doing.
I understand that the supreme chancellor sent ambassadors to settle the trade dispute. But I was not under the impression that the senate ever explicitly authorized him to do so.