The ongoing constitutional restructuring in Mexico has raised alarms among international businesspeople, according to the British newspaper.
Following the approval by the Chamber of Deputies of the Judicial Reform promoted by President Andrés Manuel López Obrador, the business sector has expressed concern over the potential economic repercussions, said Michael Stott, Latin America editor for the British newspaper Financial Times.
In an article published on Wednesday by the British outlet, Stott cited how, in countries like Russia, foreign companies often face unfair competition from state-owned rivals, who are usually backed by judges allied with the ruling party and are threatened by tax authorities. The fear among companies stems from the fact that nothing like this has ever happened in any of the North American countries, especially not in one that is also the United States’ main trading partner.
Business leaders are worried, according to Stott, about the constitutional restructuring underway in Mexico, which would lead to judges being elected by popular vote, including those on the Supreme Court, the abolition of autonomous regulators, and other measures included in the judicial reform.
He notes that many companies have refrained from commenting on the matter for fear of reprisals, but even the U.S. Chamber of Commerce is upset, as it risks “undermining the rule of law and the protections for business operations in Mexico.”
As for financial markets, Stott points out that they have also shown signs of strain, and the Mexican peso has felt the consequences of the reform in recent days. Investors are also concerned because these structural changes in Mexico’s judiciary directly affect international trade agreements, such as the USMCA, as well as agreements with the European Union and Asia.
In this regard, U.S. Ambassador Ken Salazar said during his participation in a business summit that even if the Judicial Reform is approved—which will be voted on in the Senate next Wednesday, September 11—Mexico and the U.S. will continue to be trading partners.