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Judicial Reform in Mexico: A Guide for Companies on Implications and Risks
Mexico’s new judicial reform has raised questions and concerns among the country’s legal profession, the international community, and the private sector. Many businesses and investors are wondering how the reform might impact their investments and activities, and considering how to adapt their strategies to adjust to this new environment. While it isn’t clear yet exactly how the changes brought by the reform will play out, the Vance Center has analyzed some of the main risks and considerations for companies with operations in Mexico.
Overview
Mexico’s Judicial Reform Decree, published on September 15, 2024, in the Federal Official Gazette, fundamentally altered the operation of the federal judiciary, which serves as the ultimate guarantor of legality in the country. While the reform also impacts state-level justice systems, most state constitutions still await corresponding amendments. The potential effects of this reform are unpredictable, as it was implemented without prior assessment. The reform has raised concerns and uncertainties about its possible impact on an investment environment already shaken by recent global events, particularly due to the risk of diminished legal certainty stemming from a complete overhaul of the justice delivery system.
The complete replacement of all federal and local judges set to take place in 2025 and 2027, along with the structural modification to the composition of all judiciaries nationwide, eliminates the experience of judges who have accumulated years of technical knowledge in their fields, procedural law, and the precedents built over time, replacing them with individuals who lack judicial experience in the subject matter they will handle.
This guide concisely analyzes the primary risks and considerations for companies seeking to understand potential impacts of the new reform on their operations. It is not intended to be an exhaustive or definitive study of all economic dimensions and implications of the judicial reform. Rather, it is an initial guide that outlines some relevant points for consideration.
The guide is also available in Spanish.
Read the guide
More on Mexico’s judicial reform
Vance Center Participates in IACHR Hearings on Judicial Independence and Mexico’s Judicial Reform
‘The Rule of Law at Stake’: Expert Panel Raises Concerns about Mexico’s Judicial Reforms
City Bar Statement Expressing Concern about the Proposal to Reform the Mexican Judiciary