Mexico Approves Judicial Reform Amid Controversy and Volatility

The Mexican Senate approved a judicial reform electing judges by popular vote, seen by critics as a threat to the rule of law. The reform marks a major win for outgoing President Andres Manuel Lopez Obrador, sparking protests, judicial strikes, and market instability.

Mexico's Senate approved a sweeping judicial reform early Wednesday, electing judges by popular vote—a transformation that critics argue could undermine the rule of law and harm the economy. This reform is a significant win for outgoing President Andres Manuel Lopez Obrador in his final month in office.

During a marathon session disrupted by protesters, the ruling Morena party secured the needed supermajority to pass the reform, leading to unrest among judicial workers and market volatility. Senators voted 86 to 41 in favor, receiving applause from the ruling bloc.

Incoming President Claudia Sheinbaum praised the approval on social media, stating it fulfills popular will and marks a shift toward true democracy. However, opposition leaders criticized the vote, alleging undue pressures and coercions.

This judicial overhaul, likened only to Bolivia's system in the Americas, has spurred warnings from trading partners the U.S. and Canada, who fear it could destabilize the USMCA trade pact and affect investment. The reform includes electing more than 6,500 judges and magistrates, including Supreme Court justices, by popular vote.

With Sheinbaum set to take office on Oct. 1, managing the reform's fallout will be a defining challenge of her early presidency.