Gundam co-creator Yoshiyuki Tomino was not involved in the production of the film. Production began in June 1998, and the film premiered in 1999 and was intended, along with the Turn A Gundam television series, to be the centerpiece of Sunrise's 'Big Bang Project', the 20th anniversary celebration for the Gundam franchise. Most of the outdoor set locations were in British Columbia, Canada. The project's actors are predominantly from the Canadian production company Polestar Entertainment, with the Japanese language version being dubbed into the film. Opposing CONSENT is the Illuminati, an organization dedicated to maintaining peace in the Earth Sphere. When an agricultural breakthrough is made by scientists from the neutral Side 8 Settlement of Gaea, CONSENT resolves to suppress the technology by force. CONSENT suffers from a global food shortage, while the Settlement Freedom League has the capability to feed itself and is thus unaffected. Various social crises, such as overpopulation and food shortages, have caused instability in the Earth Sphere.

Following the end of the Federation, two opposing powers have emerged: the Congress of Settlement Nations (CONSENT), which is comprised mostly of the former Federation and Sides 2, 3, 5, 6, 7, and the Settlement Freedom League, comprised of Sides 1, 4, and the Lunar Cities. The space colonies are now referred to as space 'Settlements'.

The Earth Federation has collapsed, and space colonies under the Federation's control were given autonomy.

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