Mexico's Judicial Reforms Spark Strike, Investor Concerns, and US Condemnation

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• Mexico's Judicial Reforms Spark Strike, Investor Concerns, and US Condemnation

  President Lopez Obrador, on February 5th of this year presented a series of constitutional reforms that have caused a lot of controversy, both in Mexico and the United States.

  In particular, the judicial reform has caused a lot of alarm in the United States because it represents, not only a clear and direct violation of USMCA commitments and obligations on behalf of Mexico, but because it really puts at risk billions of dollars of US investment in Mexico.

  Given that many companies will now not have, you know, a clear legal system in which they are able to protect their investments.

  The judicial reform not only seeks, for justices and Mexico's Supreme Court, for federal and local judges as well to be elected by popular vote, but the requirements to become a judge or even a Supreme Court justice are very low, which opens the path to have judges and a judicial system with members that are, you know, not qualified for the job.

  The second real concern is that it opens the path to further influence from organized crime, who, already play an important role in determining who the judges, at least at the local, municipal and state level, are going to be in order to protect their interests.

  Now, if all judges are going to be elected by popular vote, you know, the organized crime could really influence the election of these judges in particular states.

  But more than that, it would really diminish the checks and balances against the executive branch. The Supreme Court has been the one government branch that has put a stop to many of President Andrés Manuel Lopez Obrador's past reforms, passed bills and has deemed them unconstitutional for a variety of reasons.

  And so, in order to have a real democracy with checks and balances, where all the power is not concentrated only in the presidency, is extremely important to have a thriving and flourishing democracy. And so this judicial reform not only presents problems for the capacity and the skills that the next judges will have, but it also diminishes sort of the democratic institutions and the separation of powers in Mexico.

  These new announcements on behalf of the Mexican president just adds, you know, unpredictability. It really could stem the competitiveness, the prosperity of the North American region and it could really undermine the USMCA in the very near future.