Pressure mounts against judicial overhaul in Mexico amid market concerns and striking judges

MEXICO CITY — President Andrés Manuel López Obrador is facing mounting pressure against his controversial proposal to overhaul the Mexican judicial system, which would have judges be elected.

Judges and magistrates on Wednesday joined a strike begun early this week by federal court employees to oppose the proposal, while Morgan Stanley and other financial institutions warned that the overhaul could pose serious market consequences and risks for potential investors in Mexico.

In a response to rising criticism, President-elect Claudia Sheinbaum joined her political ally López Obrador in defending the proposal Wednesday.

“Investors shouldn’t be worried. On the contrary, we will have a better justice system in Mexico," Sheinbaum said.

López Obrador, a populist leader whose six-year term ends Sept. 30, has long been at odds with Mexican courts.

He contends judges are part of a “mafia” against him, and says the proposal is meant to clean up corruption. He has gone on winding rants against the judicial system, ignored court orders and publicly sparred with judges whose rulings he has disagreed with.

Among the changes sought by the López Obrador it to have judges be elected and allow virtually anyone with a law degree with a few years experience as a lawyer to become a judge through popular vote.

Given major electoral wins by López Obrador’s Morena party in June elections, many academics have voiced concerns that selecting judges by popular vote would put politically biased judges on the bench and deal a blow to checks and balances.

The striking court employees also fear the measure could put their careers in danger.

Since Monday, thousands of employees have camped outside federal court buildings, and the rallies grew Wednesday with judges and magistrates joining in. The demonstrators gathered under tents chanting and holding protest signs, with Mexicans with court appointments turned away.

“It could do damage to society,” said Fernando Rangel Ramírez, a federal judge on strike. He said the judicial branch “is an institution that historically, and in its nature, should not be politicized. There should be people in it that have enough experience.”

The National Association of Circuit Magistrates and District Judges said the strike will go on indefinitely, until the president's proposal with “its many imperfections” is blocked. The group said it hopes to redirect "public discussion toward a well-considered comprehensive reform to address the structural causes that have been steadily weakening the quality of justice” in Mexico.

The only federal courts not affected by the strike are the Supreme Court of Justice of the Nation and the Electoral Tribunal, the group said. The only cases that will be taken are those considered “urgent.”

The proposal will need to be approved by Mexico's newly elected congress, which will take office Sept. 1 with Morena and its allies holding a majority.

Morgan Stanley downgraded its recommendation for investing in Mexico this week because of the proposal.

“We believe replacing the judicial system should increase risk” for investments in Mexico, it said in a report released Tuesday night.

Those concerns were echoed by Citibanamex, which warned in a statement Tuesday that markets were underestimating the "serious implications” of the proposal, given the Morena party's firm control of both the executive and legislative branches of government.

"The contours of this ruling, which are already evident, could mean the cancellation of liberal democracy, based on the rule of law and governed by the periodic electoral change of majority and solidly counterbalanced governments,” Citibanamex specialists said.

Mexico’s peso took another small dip in currency trading Wednesday morning following the criticism.

López Obrador has maintained his sarcastic tone in the face of increased pressure against his proposals.

“If the judges ... are not working. At the very least, they are not going to get criminals out of jail,” he said Wednesday.

While Sheinbaum has showed herself to be more open to dialogue and held forums for debate on the subject, she questioned concerns about the plan and said Morgan Stanley and others might be “misinformed.”

“Their investments will be better protected,” she said.

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Associated Press journalist Martín Silva Rey contributed to this report.