Judicial reforms strain Mexican-U.S. ties, spook investors

Controversial judicial reforms in Mexico strain U.S. relations, rattle markets, and threaten democracy and trade relationships.

Controversial judicial reforms promoted by Mexico’s outgoing president are straining diplomatic relations with the United States, its neighbor and key trading partner, while also rattling financial markets.

U.S. Ambassador to Mexico Ken Salazar has warned that the changes would “threaten” a trade relationship that “relies on investors’ confidence in Mexico’s legal framework.”

The reforms, under which judges would be elected by popular vote, could pose “a major risk to the functioning of Mexico’s democracy,” he told journalists last week.

In particular, they could “make it easier for cartels and other bad actors to take advantage of politically motivated and inexperienced judges,” Mr. Salazar said.

Canada, also a member of the major free trade partnership with the United States and Mexico, has for its part said investors are worried.

“My investors are concerned, they want stability, they want a judicial system that works if there are problems,” Canadian Ambassador Graeme Clark said.

Mr. Salazar’s remarks in particular irked Mexican President Andres Manuel Lopez Obrador, who announced Tuesday a “pause” in dialogue with the U.S. diplomat.