Mexico's Senate Just Short of Supermajority for Controversial Reform

Mexico's ruling coalition is one senator short of a supermajority needed for controversial judicial reform after two opposition senators joined Morena. This has heightened tensions with the U.S. and Canada. The proposed reform aims to allow the popular election of judges but has sparked investor concerns.

On Wednesday, Mexico's ruling coalition fell just one senator short of securing a supermajority in the Senate, which would enable controversial judicial reform. This development came after two opposition senators joined Morena, according to President-elect Claudia Sheinbaum.

The Senate's two-thirds supermajority is crucial for altering the Constitution, a move that has recently roiled markets and heightened tensions between Mexico and its northern neighbors, the U.S. and Canada.

Last week, the electoral authority confirmed that the Morena ruling party and its allies secured a supermajority in the lower house for the upcoming congressional session set to start in September. Two Democratic Revolution Party (PRD) senators, Araceli Saucedo and Jose Sabino Herrera, recently switched affiliations to join Morena. Despite ideological similarities, the PRD was part of an opposition coalition with more conservative parties.

"I welcome two extraordinary colleagues who made the historic decision to join our movement's legislative bloc," President-elect Sheinbaum stated at a meeting with Morena party members. Following this announcement, the Mexican peso trimmed earlier gains, appreciating only 0.36% against the U.S. dollar.

Congress is slated to convene on Sunday and will soon begin debating a series of constitutional reforms proposed by outgoing President Andres Manuel Lopez Obrador. His reforms aim to overhaul the judicial system to allow popular election of judges, a proposal that has alarmed investors and drawn concerns from the U.S. and Canadian embassies. Proponents argue it will enhance democracy and fix a flawed system, while critics insist it will skew power towards the executive, disrupt judges' careers, and leave courts vulnerable to criminal influence.

(With inputs from agencies.)