In Mexico, judicial reforms proposed by the government have sparked a wide-ranging debate that affects domestic political terrain and raises serious concerns internationally. Announced on February 5, the reform seeks to significantly alter the functioning of the country’s judiciary, including eliminating key autonomous bodies such as the Federal Telecommunications Institute (IFT).
The movement was interpreted as a threat to democratic principles and Mexico’s international commitments, particularly trade and commerce agreements. Cooperation with USA, Canada and Europe. As the final vote on the reforms approaches, the implications for international relations and the country’s economic stability are becoming increasingly apparent.
According to the Executive Mexican Institute of Finance (IMEF), the judicial reform will be put to a vote in early September and will exclude autonomous bodies. There could be serious consequences for Mexico’s international agreements. In particular, the Agreement between Mexico, the United States and Canada (T-MEC) establishes the need to maintain an independent regulatory agency in its telecommunications chapter.
Dissolution of the Federal Institute of Telecommunications (IFT) has raised concerns and may violate Articles 18.6 and 18.17 of the Agreement and 12 US trade bodies. They expressed concern about this potential breach. Moreover, the agreement with Europe includes a “democracy clause”, which obliges countries to respect and promote democratic principles and fundamental human rights.
Furthermore, the exclusion of autonomous bodies in Mexico could contradict this commitment and affect relations with the European Union. Despite these warnings, judicial reform and the elimination of autonomous agencies are moving forward in Congress US Ambassador Ken Salazar noted that the proposed changes could be Damages relations between Mexico and the United StatesEspecially the direct election of judges and magistrates.
For his part, Canada’s ambassador, Graeme Clarke, expressed Canadian investors’ concerns about the reforms. President López Obrador initially responded that these matters were Mexico’s exclusive responsibility and decided later Cut ties with the embassy From USA and Canada. The decision was reported by The New York Times under the headline: “Mexico Cuts Diplomatic Relations With US Over Criticism of Its Judiciary Proposal.”
The chambers of commerce of Canada and the United States also joined in the criticism, highlighting legal certainty and judicial transparency for effective economic integration. The Wall Street Journal and other international media covered the reforms extensively, warns that they could violate trade agreements and negatively impact the Mexican economy. In view of this, IMEF noted that the reforms could have serious implications for foreign investment.
Citibanamex and Morgan Stanley warned investors of potential negative reactions, while Bank of America Global warned that the next 90 days Could define the next decade for Mexico. Franklin Templeton and other financial institutions have also expressed concern about Mexico’s potential investment grade loss.
On the other hand, in a recent conference, the governor of the Bank of Mexico, Victoria Rodríguez Ceza, included in her quarterly report the impact of the break in diplomatic relations on economic activity. The Bank of Mexico’s survey of private sector economic specialists’ expectations predicts a worsening business climate and less willingness to invest.
FS
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