U.S. Congress Raises Alarm Over Mexico’s Judicial Reforms: What It Means for North American Trade

This Congressional resolution is essentially the U.S. House of Representatives sending a strongly worded note to Mexico, expressing serious concern over a sweeping set of constitutional changes recently passed south of the border. It’s not a new law, but it’s a formal statement signaling that these changes could jeopardize the massive economic and security relationship between the two nations.

The $896 Billion Question: Why Congress Cares

First, let’s talk about the money. The resolution kicks off by reminding everyone that the U.S. and Mexico are top trading partners, moving nearly $900 billion in goods annually. U.S. companies have invested over $130 billion in Mexico, and Congress estimates that nearly 5 million American jobs rely on this trade. The U.S. isn't just watching Mexico out of curiosity; it's watching its own economic stability. The core message is clear: if Mexico’s stability is threatened, so is the U.S. economy, especially with the USMCA trade agreement review scheduled for 2026.

Judges on the Ballot: The Judicial Overhaul

The most immediate red flag for Congress is the reform to Mexico’s court system, which became law on September 15, 2024. Under this change, all federal judges, including Supreme Court Justices, will be directly elected by public vote. For the U.S., this is seen as a massive erosion of judicial independence. Think about it: instead of judges being appointed based on legal expertise and serving without political pressure, they now have to run campaigns and raise money. The resolution notes this change will also lower the qualification standards for judges, effectively politicizing the entire judiciary. If you’re a U.S. business owner with a contract dispute in Mexico, your case is now handled by an elected official rather than an independent legal expert, making the rule of law less predictable.

The Erasure of Watchdogs

Beyond the courts, the resolution highlights other constitutional changes passed in December 2024 that eliminate several autonomous agencies. These agencies were the independent watchdogs overseeing crucial sectors like energy, telecommunications, and social development, as well as enforcing antitrust and transparency laws. In the U.S. view, these agencies were essential checks and balances. The elimination of these bodies means less transparency and less regulatory oversight for U.S. companies operating in Mexico—or any company, for that matter. For example, if a U.S. energy company invests in a Mexican power plant, the independent regulator that used to ensure fair play is now gone, leaving the company more exposed to government decisions.

Trade, Security, and Fentanyl

Congress is deeply concerned that these sweeping reforms may violate Mexico’s commitments under the USMCA trade agreement. The agreement relies on stable, predictable legal frameworks and independent regulatory bodies to function. If Mexico is seen as failing to uphold the rule of law, it could trigger trade disputes that destabilize the entire North American economic bloc. Furthermore, the resolution warns that weakening Mexico’s institutional strength could hinder joint efforts on critical security issues—specifically fighting organized crime, stemming the flow of fentanyl, and tackling human and arms trafficking. Essentially, the U.S. is saying that undermining Mexico’s own institutions makes it harder for both countries to fight shared threats.