(Bloomberg) -- Mexico’s lower house approved the text of President Andres Manuel Lopez Obrador’s proposal to overhaul the country’s judicial system, which seeks to elect all federal judges by popular vote, something that opponents say will put democracy at risk.
The ruling Morena party and its allies used its broad two-thirds majority in the lower house to pass the proposal with 357 votes in favor and 130 against after making minor modifications, according to a post Wednesday from the lower house lawmakers on X.
Senate lawmakers could propose additional changes, but the core objective, the election of judges by popular vote, is to remain part of the proposal.
The peso weakened as much as 0.65% against the US dollar to 19.92 before paring losses as traders assessed the implications of the vote.
Lawmaker Ignacio Mier said that the senate could vote as soon as next Wednesday, according to daily newspaper Milenio. In the senate, the governing coalition only needs one additional vote to reach the super-majority required to pass the bill.
The plan seeks to elect approximately half of Mexico’s federal judges by popular vote in 2025, including Supreme Court justices, and the rest in 2027, when the Electoral Court judges will be elected.
“The intention of this reform is to eliminate once and for all the checks and balances that have put a limit to the concentration of power,” said opposition lawmaker Claudia Ruiz Massieu Salinas, from the Movimiento Ciudadano party.
Earlier, Supreme Court justices decided to join labor strikes against the reform, a decision that was approved with eight votes in favor and three against, the top court confirmed in a statement. Urgent matters will continue to be attended and the justices will evaluate the decision on Sept. 9.
In addition to the vote on the judges, Lopez Obrador’s plan would reduce the number of Supreme Court justices to 9 from 11 and cut their term to 12 from 15 years. He also wants to eliminate the requirement that judges must be at least 35 years old, and halve the years of experience needed in judiciary work to 5 from 10.
The plan is a priority for the president known as AMLO, who has characterized it as a way to root out judicial corruption and wants to secure its approval before he leaves office at the end of September. But it has drawn backlash from judges, the Mexican opposition, investors and the US, who all say it will undermine judicial independence and will give the ruling party control of the judiciary.
President-elect Claudia Sheinbaum said the judicial reform won’t affect Mexico’s trade relations, nor domestic or foreign private investments. “On the contrary, there will be more and better rule of law and more democracy for all,” she said in a post on X before the vote.
The session had to be held in a sports center in Mexico City because demonstrators blocked access to the legislature to protest against the reform. When asked by a reporter about the change in setting at his morning press conference, AMLO defended the lawmakers’ actions and critiqued judges for joining the strike.
“In reality, they are not deciding on justice in a way that benefits the people. They are defending the special interest groups. There’s no reason to worry, and I congratulate the lawmakers who are trying to clean out corruption from the judiciary,” AMLO said on Wednesday.
The proposal will also have to be discussed in local congresses if it’s passed in the senate.
--With assistance from Vinícius Andrade.
(Updates with vote on specifics of the bill in second paragraph, market reaction in fourth, and AMLO statement in twelfth.)
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