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Home Economy

Judicial Reform Undermines Independence and Jeopardizes Investments: AMDA

The organization representing automotive dealers opposes the initiative, acknowledging the need for change in the sector but warning that the reform threatens judicial independence and could endanger investments.

T21 Media by T21 Media
2 September, 2024
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The Mexican Association of Automobile Distributors (AMDA) considered that the reform to the Judicial Branch, proposed by President Andrés Manuel López Obrador, violates independence in the matter, by wanting to appoint judges, ministers and magistrates by popular vote, and noted that it would also impact the viability of investments .

AMDA stated in a statement its position on the initiative, which was approved on August 26 by the Constitutional Affairs Committee of the Chamber of Deputies .

The appointment of judges, ministers and magistrates by popular election, the organization noted, “far from providing legal certainty to citizens, deepens the discretion of decisions, politicizes it and does not define objective criteria for an adequate selection of the required profiles,” since one of the consequences would be the weakening of the judicial career .

He said that this will not solve the problems facing the judicial system, and although AMDA indicated that reform is necessary to improve it, he specified that “ institutional destruction is not the way to promote a higher state of social coexistence.”

Economically, he added, judicial reform puts the viability of investments at risk and leaves them highly vulnerable to the power of the Executive.

It is worth remembering that the reform of the Judicial Branch has triggered demonstrations and protests, even the ambassadors of Canada in Mexico , Graeme C. Clark, and of the United States, Ken Salazar , expressed their concern about some points of this initiative, which has generated legal uncertainty among foreign investors.

It has also caused tensions between the nations that make up the United States-Mexico-Canada Agreement (USMCA) , which will be reviewed in 2026, leading to a “diplomatic pause” between the country and the US and Canadian governments.

In light of the various expressions against this reform and the rethinking that business organizations have suggested, the president-elect, Claudia Sheinbaum , asked not to accelerate the discussion of the judicial reform that, according to representatives of various chambers of commerce in Mexico, would affect the benefits of nearshoring (relocation of production lines in the country).

With a new legislature in the Mexican Congress, businessmen, workers and part of society that has expressed its rejection of this initiative, hope that this approach will be reconsidered.

Comment and follow us on X: @GrupoT21

Tags: AMDAAMLOClaudia SheinbaumJUDICIAL BRANCH OF THE FEDERATIONUSMCA

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