Mexico's ruling party looking at changes to judicial reform to calm markets, sources say
Judicial reform to include staggered election of judges, technical committee selection
Judicial workers' trust funds to be protected, calming tensions with government
Reform adjustments consider 2026 USMCA review to ensure legal and commercial stability
By Diego Oré
MEXICO CITY, Aug 8 (Reuters) -Mexico's ruling party is considering changes to a proposed judicial reform in a bid to calm market concerns, including making the election of judges a staggered process over many years to reduce fears of a political takeover of the judiciary, sources familiar with the discussions said.
The original proposal by outgoing President Andres Manuel Lopez Obrador rattled investors on concerns the changes would weaken Mexico's checks and balances by introducing the election of nearly 1,600 judges - including to the Supreme Court - by popular vote.
President-elect Claudia Sheinbaum, who takes office in October, also of the ruling Morena party, has defended the proposal, saying she believes judges should be elected.
Morena, however, will adjust the reform so that the election of judges is staggered and participants are selected by a technical committee after undergoing suitability tests, said four party sources with knowledge of the discussions.
In addition, the sources said, the lucrative trust funds of judicial workers will be protected. Last year, Mexico's Senate voted to terminate 13 trusts held for the judiciary, ratcheting up tension between the government and judicial authorities, though the Supreme Court later reversed the decision.
Mexico's peso MXN= plummeted 8% the week after the June 2 elections, which also ushered in a super-majority in the lower house of Congress for Morena.
Lopez Obrador has denied that the market volatility is linked to the judicial reform.
The outgoing president has pushed the reform, which also proposes reducing the number of Supreme Court judges to nine from 11, as a necessary transformation of a justice system which he said "is not at the service of the people."
Critics argued the election of judges by popular vote would politicize the justice system in favor of Morena and its allies.
Spokespeople for Lopez Obrador, Sheinbaum and Morena did not immediately respond to a request for comment.
TRADE PACT WORRIES
The four Morena sources said the new modifications also considered an upcoming 2026 review of the United States-Mexico-Canada Agreement, the trade pact which took effect in 2020.
The popular election of judges without strict conditions, as originally proposed, was seen by the sources as a potential stumbling block to the functioning of Mexico's labor courts which were created to comply with swift resolutions of labor-management conflicts under the USMCA.
Legislators decided to adjust Lopez Obrador's reform so that it does not affect the "clear, transparent and predictable" legal and commercial framework, as stipulated in the USMCA.
Senator Ricardo Monreal, who is expected to lead Morena in the lower house when the new Congress begins in September, said it was the role of legislators to incorporate "issues that can improve, enrich or modify the presidential proposal."
"We will respect all expressions, points of view; we will resist internal and external pressures, and we will maintain our principles and our commitments," Monreal said in an interview.
Mexico's Sheinbaum backs Lopez Obrador's judicial reform, says 'nothing to worry about' https://www.reuters.com/world/americas/mexicos-sheinbaum-says-judges-should-be-elected-backing-lopez-obradors-reform-2024-06-13/
Mexico president says judicial overhaul will proceed despite market jitters https://www.reuters.com/world/americas/mexico-president-says-market-jitters-wont-stop-judicial-reform-drive-2024-06-12/
Reporting by Diego Ore in Mexico City
Writing by Cassandra Garrison; Editing by Ana Isabel Martinez and Matthew Lewis
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
