Mexico’s ruling party is contemplating significant adjustments to a proposed judicial reform to address market concerns and ensure stability within the country’s supply chain. The reform, initially introduced by the outgoing administration, included the election of judges by popular vote—a move that raised concerns about the potential impact on Mexico’s legal and commercial environment.
To calm market volatility, discussions are underway to modify the reform by introducing a staggered election process for judges, with participants selected by a technical committee after undergoing rigorous suitability tests. These changes aim to maintain the integrity of Mexico’s judicial system while addressing fears of politicization.
Additionally, the adjustments will protect the financial trust funds of judicial workers, ensuring that the reform does not disrupt the existing legal framework. This is particularly important given the recent tensions between the government and judicial authorities over the termination of these trusts, a decision later reversed by the Supreme Court.
The proposed reform has also been carefully reviewed in the context of the United States-Mexico-Canada Agreement (USMCA). Lawmakers are keen to ensure that any changes to the judiciary do not interfere with the functioning of Mexico’s labor courts, which play a crucial role in resolving labor-management conflicts under the trade pact.
As Mexico prepares for a 2026 review of the USMCA, these judicial reform adjustments are seen as essential to preserving a transparent and predictable legal environment, crucial for the smooth operation of supply chains across North America.
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