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Mexico’s proposed constitutional reform: a risk to legal predictability and to a trusted EU-Mexico relationship
Mexican President Andrés Manuel López Obrador’s recent proposed constitutional reform would establish direct elections for Supreme Court justices, circuit magistrates and district judges, replacing the merit-based appointment system, while also eliminating independent regulatory bodies in the energy field, and other decentralized entities.While the Mexican government’s intent to strengthen the judiciary and tackle corruption in the justice system is understandable, the current approach poses serious risks to the investment climate and the broader economic integration of Mexico with its key trading partners, including the EU. Given the importance and the urgency of this issue, the European Commission should raise these concerns with its Mexican counterparts.
The proposal could create a significant power imbalance between the judiciary and the executive and legislative branches, threatening the essential checks and balances that are crucial for maintaining a predictable and stable legal environment. Strong rule of law is vital for ensuring a healthy economic climate, as well as for bolstering investor confidence and creating value for businesses and consumers alike. The US and Canada have already expressed their concerns about the potential negative impacts on investment and trade relations with Mexico.
US companies share these concerns, especially given the significant investments made by EU and US businesses in Mexico. The EU is one of Mexico's largest trading partners, and the modernised EU-Mexico Global Agreement concluded in 2018 is a testament to the strong economic ties and shared commitment to fostering a stable and transparent business environment. However, the proposed judicial reform threatens to destabilise this relationship and jeopardise the ongoing ratification process of the EU-Mexico Global Agreement.
The European Commission must signal to Mexico the importance of respecting judicial independence consistent with international law and Mexico’s international commitments and of continuing to engage with all stakeholders as this reform is deliberated. In turn, this could help improve Mexico's judicial system while safeguarding a stable and predictable business environment. By working together, the EU and Mexico can ensure that their valuable partnership remains strong and keeps the ratification of the EU-Mexico Global Agreement on track.