Mexico's Controversial Judicial Reform: Market Impact and International Concerns

Mexico's Senate approved a judicial reform proposed by outgoing President Lopez Obrador, which has ignited court workers' strikes, strained U.S. relations, and caused market volatility. The reform includes major changes in judge elections and has sparked opposition from the U.S. and Canada, citing risks to democratic stability.

Mexico's Senate has approved a judicial reform submitted by outgoing President Andres Manuel Lopez Obrador, a move that has sparked significant unrest among court workers and strained diplomatic relations with the United States.

The reform, which has gained support from President-elect Claudia Sheinbaum, introduces major changes including the popular election of over 6,500 judges and the reduction of Supreme Court judges' terms. Opponents argue it poses a risk to the judicial system's integrity and independence.

Both the U.S. and Canada have voiced concerns, warning that the reform could destabilize Mexico's democracy and judiciary, potentially increasing its vulnerability to organized crime. The reform still needs state-level approval before it is enacted.

(With inputs from agencies.)