The constitutional reform to the Judiciary published in September 2024 in the Official Gazette of the Federation (DOF) raises concerns about its impact on judicial independence and possible conflicts with the Treaty between Mexico, the United States and Canada (T-MEC) , according to a statement from the Mexican Institute for Competitiveness (IMCO) , measures that could compromise the impartiality required by the T-MEC.
In this regard, the reform that establishes, among other aspects, the popular election of judges and magistrates poses risks of partisanship, according to IMCO, and there are fears that judicial processes will become more susceptible to political influences.
Furthermore, the intervention of political parties and interest groups could increase “impunity and reduce the professionalization of the judicial system ,” which directly affects the country’s ability to guarantee a solid rule of law, as established by the IMCO analysis.
In the context of the USMCA , this change raises alarms in the United States and Canada, which see the impartiality required by the treaty to guarantee fair and equitable treatment to foreign investors compromised.
According to IMCO, 83% of Mexico’s exports go to the United States, and 44% of foreign direct investment comes from there . Reforms that affect competitiveness or transparency could put this key relationship at risk and generate uncertainty for the Mexican economy and its trade ties with North America.
For IMCO, one of the most controversial proposals within the reforms is the extinction of seven autonomous organizations, such as the Federal Telecommunications Institute (IFT) , the Federal Economic Competition Commission (Cofece) and the Energy Regulatory Commission (CRE) . These organizations would be absorbed by executive agencies, which would further concentrate power in the public administration.
The elimination of these bodies also has domestic implications, such as reduced accountability and transparency, and also creates potential conflicts with the USMCA . This agreement requires the existence of independent regulatory bodies in key sectors such as telecommunications, competition and energy, which puts Mexico at risk of not complying with the provisions agreed with its main trading partners.
Additionally, in its analysis, IMCO details that the proposed reforms in the areas of energy and water also generate tensions. The energy reform, which proposes limiting private participation in key sectors such as electricity transmission and distribution, violates the principles of the USMCA that prohibit the rollback of trade openness and foreign investment.
Thus, reforms to water and mining concessions increase uncertainty by restricting investment in strategic sectors.
On the other hand, IMCO also highlights the ban on the use of genetically modified corn, which affects both planting and human consumption, causing a trade conflict with the United States, as it is not based on scientific evidence. This disagreement is currently in a dispute resolution process under the rules of the T-MEC.
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