Smugglers of level 30 or above have amassed enough experience dealing with people and with sticky situations that they can attempt to defuse aggressive situations. When successful this can buy the smuggler enough time to come up with an alternative to fighting.
Of course, the previous aggressors won't be pacified forever. And if the smuggler should decide to draw on an opponent they've pacified in this way, they may find themselves with a distinct advantage for a few moments.
This skill has a separate skill check for each combatant in the smuggler's room.