Mexico’s ruling party is considering changes to a proposed judicial reform in an attempt to alleviate concerns from the market. One of the key modifications being discussed is making the election of judges a staggered process over several years. This approach aims to address fears of a potential political takeover of the judiciary. The original proposal by outgoing President Andres Manuel Lopez Obrador raised red flags among investors, who were worried that the changes could undermine Mexico’s system of checks and balances. The plan included the election of almost 1,600 judges, including those for the Supreme Court, through popular vote.
President-elect Claudia Sheinbaum has backed the proposal, arguing that judges should be elected. However, the ruling Morena party is looking to tweak the reform to ensure a more structured selection process for judges. Sources familiar with the discussions have revealed that participants will now be chosen by a technical committee after undergoing suitability tests. Additionally, it has been mentioned that the reform will safeguard the trust funds of judicial workers. Last year, Mexico’s Senate voted to abolish 13 trusts held for the judiciary, sparking tensions between the government and the judicial sector.
Market Impact and Political Concerns
Following the June 2 elections, where Morena secured a super-majority in the lower house of Congress, Mexico’s peso plummeted by 8%. Despite this market volatility, President Lopez Obrador has refuted claims that it is linked to the judicial reform. He has been an ardent supporter of the reform, emphasizing the need to transform a justice system that he believes is not serving the people. Critics, however, have pointed out that electing judges through popular vote could politicize the judiciary in favor of Morena and its allies.
Spokespeople for Lopez Obrador, Sheinbaum, and Morena have refrained from commenting on the proposed changes to the reform. Amidst these discussions, there is also consideration for the impact of the upcoming 2026 review of the United States-Mexico-Canada Agreement (USMCA). The original proposal for the popular election of judges without strict conditions was seen as a potential obstacle to the functioning of Mexico’s labor courts, established to resolve labor-management disputes swiftly in accordance with the USMCA provisions.
Legislative Responses and Future Direction
Senator Ricardo Monreal, expected to lead Morena in the lower house, has highlighted the role of legislators in refining the presidential proposal. He emphasized the importance of ensuring that any modifications to the reform do not compromise the clarity, transparency, and predictability of Mexico’s legal and commercial framework, as outlined in the USMCA. Monreal articulated a commitment to incorporating feedback and viewpoints from various stakeholders while upholding their principles and obligations.
The proposed modifications to Mexico’s judicial reform illustrate a balancing act between addressing market concerns and political considerations. The decision to stagger the election of judges and introduce selection criteria through a technical committee reflects an attempt to strike a middle ground. As discussions continue and legislators deliberate on the reform, it remains to be seen how these changes will shape the future of Mexico’s judiciary and its adherence to international trade agreements.