Mexico’s ruling party is considering changes to a proposed judicial reform in order to address market concerns. One of the main changes being considered is making the election of judges a staggered process over many years. This aims to reduce fears of a political takeover of the judiciary. The original proposal by outgoing President Andres Manuel Lopez Obrador raised concerns among investors, as it introduced the election of nearly 1,600 judges – including to the Supreme Court – by popular vote.
President-elect Claudia Sheinbaum, who also belongs to the ruling Morena party, has defended the proposal, stating that she believes judges should be elected. However, Morena plans to adjust the reform so that the election of judges is staggered and participants are selected by a technical committee after undergoing suitability tests. Additionally, the reform will protect the lucrative trust funds of judicial workers.
Market Volatility and Trade Pact Worries
Last year, Mexico’s Senate voted to terminate 13 trusts held for the judiciary, leading to tension between the government and judicial authorities. This move, along with the proposed judicial reform, resulted in market volatility. Mexico’s peso plummeted 8% the week after the June 2 elections, which also brought in a super-majority in the lower house of Congress for Morena. Despite this market reaction, Lopez Obrador denies that the volatility is linked to the judicial reform.
The modifications being considered to the judicial reform also take into account the upcoming 2026 review of the United States-Mexico-Canada Agreement (USMCA). The popular election of judges without strict conditions, as originally proposed, was seen as a potential stumbling block to the functioning of Mexico’s labor courts created to comply with the USMCA. To ensure that the legal and commercial framework stipulated in the USMCA is not affected, legislators are adjusting the reform.
Critics and Concerns
Critics of the proposed judicial reform argue that the election of judges by popular vote could politicize the justice system in favor of Morena and its allies. Concerns have been raised about the potential for the new system to weaken Mexico’s checks and balances by introducing popular voting for judges. However, supporters of the reform believe that this transformation is necessary to ensure that the justice system serves the people.
In response to the criticisms and concerns, Morena sources have stated that it is the role of legislators to incorporate issues that can improve, enrich, or modify the presidential proposal. Senator Ricardo Monreal, expected to lead Morena in the lower house, emphasized the importance of respecting all expressions and points of view. He also noted the need to resist internal and external pressures while maintaining principles and commitments.
Mexico’s proposed judicial reform has elicited mixed reactions from various stakeholders. While some believe that the reform is necessary for transforming the justice system, others have expressed concerns about its potential impact on the independence of the judiciary. As discussions and negotiations continue, it remains to be seen how the final reform will address these issues and whether it will succeed in balancing the need for judicial accountability with political considerations.