Mexico Changes Political Constitution

On September 15, 2024, the Mexican Official Federation Journal published amendments to various provisions of the Mexican Political Constitution, marking a significant reform of the Federal Judiciary. These changes will alter the process for selecting judges and the overall delivery of justice, with potentially far-reaching implications for businesses and investors. Below is an overview of the key changes:

Elected Judges and Justices

Judges, including those serving on the Supreme Court and Electoral Tribunal, will now be elected by the public. Nominations will come from Congress, the President, and the Supreme Court. This shift introduces public opinion and electoral dynamics into judicial appointments, a significant departure from the previous system.

Dissolution of the Federal Judicial Council

The current council responsible for managing and disciplining the judiciary will be replaced by two new bodies: an independent administrative entity and a "Judicial Discipline Tribunal" overseeing judicial conduct. Both bodies will also be filled through public elections.

Faster Court Decisions

The reform includes measures to expedite legal proceedings by imposing deadlines on court decisions. Penalties will be enforced for delays, ensuring that justice is delivered within a set timeframe.

Limitation on Judicial Power

Courts will no longer be allowed to block laws or regulations before issuing a final ruling on their constitutionality. This reduces the judiciary's power to temporarily halt government actions.

Salary Caps for Judges

Judges and judicial officials will no longer earn more than the President, affecting over 2,300 officials currently earning higher salaries.

2025 Election Overhaul

A special election in 2025 will replace all sitting judges and magistrates.

Implications for Foreign Businesses

The election of judges by popular vote introduces a risk that decisions could be influenced by political pressures, public opinion, or short-term trends, rather than legal principles. This could lead to legal uncertainty, particularly in the transition period, as complementary legislation is debated and the new judicial system is rolled out across Mexico.

Foreign businesses typically prefer legal systems that provide stability and predictability. With elected judges, legal rulings could be subject to change based on the prevailing political climate, complicating long-term business planning and investment strategies.

Though the reforms are framed as an effort to democratize and increase transparency in the judiciary, they may compromise legal stability, a critical factor for business confidence. If the judiciary becomes perceived as politically motivated, public trust could erode, and foreign investors might hesitate, questioning the impartiality of business-related rulings.

IA Opinion

The 2024 judiciary reform is a transformative step for Mexico's justice system. While the increased public involvement in electing judges is noteworthy, it risks compromising judicial independence and subjecting the judiciary to political influence.

Moreover, the reform lacks clarity on the transition for ongoing cases under the current judiciary. This ambiguity could create legal uncertainty during the handover to newly elected judges. As the reform is implemented, close monitoring will be essential, with its full impact likely becoming clearer by late next year.

Given the uncertainties surrounding the judiciary's future workflow, a cautious approach is recommended when pursuing legal actions in the coming months. This conservative stance will help mitigate potential risks stemming from delays or disruptions during the transition to the newly elected judges. Until the new system stabilizes, exercising caution can provide legal protection and reduce exposure to unforeseen risks.

Written by: Héctor Jaimes Rodríguez

*This article is informative and is not to be used as legal, economic, or commercial advice.

Sources: Reeds Smith, France 24, El Economista, El Siglo de Torreon, Dla Piper