Judicial Reform in Mexico and its potential implications for the business environment.
Judicial Reform in Mexico and its potential implications for the business environment.
We refer to the general overview of the recent Judicial Reform in Mexico and its potential implications for the business environment. At BDO Legal, our priority is to protect our clients' interests; therefore, we offer a clear and objective perspective that enables them to make informed decisions, protecting their investments.
In 2024, a constitutional reform of the Judicial Branch was approved, which, among other changes, modified the selection process for Judges, Magistrates, and Justices of the Supreme Court of the Nation. These officials will now be elected through popular vote. In June 2025, the first judicial elections took place, and the elected judges are expected to take office as of September this year.
Although the Judicial Reform represented a structural change in the Mexican judicial system and sought to “democratize” the delivery of justice to the public, the process was marked by significant uncertainty: lack of clarity regarding the requirements for candidate selection, limited experience among the candidates, and widespread doubts concerning the judiciary’s independence from political influence. These issues have generated concern among the business community and the population in general. As evidence of this, voter turnout barely reached 13.01% of the electoral roll, with approximately 40% of votes being annulled by themselves, significantly undermining the legitimacy of the Reform.
Considering this new context, BDO Legal has developed legal strategies aimed at mitigating the risks arising from this Judicial Reform by offering practical solutions and legal tools that help preserve the operational continuity of our clients' businesses.
In this regard, while it is true that Mexico has Bilateral Investment Treaties (BITs) in force with over 30 countries, these international treaties are primarily designed to protect foreign investors against arbitrary actions by the Mexican State; they are not necessarily intended to resolve disputes between private parties. Moreover, their applicability is typically limited to certain specific circumstances.
For these reasons, BDO Legal strongly recommends considering, by including, through addenda to current or future commercial agreements, (a) Mediation and (b) Arbitration as Alternative Dispute Resolution mechanisms. These private and objective measures can greatly improve legal certainty in the face of potential judicial uncertainty. Mediation and Arbitration are recognized under both domestic and international law, which allows for the resolution of commercial disputes with greater certainty, efficiency, and neutrality, thereby reducing the risks associated with an uncertain judicial landscape.
Links of interest:
We would be pleased to contact you to answer any questions or analyze your specific situation.
We remain at your service.
Sincerely,
In 2024, a constitutional reform of the Judicial Branch was approved, which, among other changes, modified the selection process for Judges, Magistrates, and Justices of the Supreme Court of the Nation. These officials will now be elected through popular vote. In June 2025, the first judicial elections took place, and the elected judges are expected to take office as of September this year.
Although the Judicial Reform represented a structural change in the Mexican judicial system and sought to “democratize” the delivery of justice to the public, the process was marked by significant uncertainty: lack of clarity regarding the requirements for candidate selection, limited experience among the candidates, and widespread doubts concerning the judiciary’s independence from political influence. These issues have generated concern among the business community and the population in general. As evidence of this, voter turnout barely reached 13.01% of the electoral roll, with approximately 40% of votes being annulled by themselves, significantly undermining the legitimacy of the Reform.
Considering this new context, BDO Legal has developed legal strategies aimed at mitigating the risks arising from this Judicial Reform by offering practical solutions and legal tools that help preserve the operational continuity of our clients' businesses.
In this regard, while it is true that Mexico has Bilateral Investment Treaties (BITs) in force with over 30 countries, these international treaties are primarily designed to protect foreign investors against arbitrary actions by the Mexican State; they are not necessarily intended to resolve disputes between private parties. Moreover, their applicability is typically limited to certain specific circumstances.
For these reasons, BDO Legal strongly recommends considering, by including, through addenda to current or future commercial agreements, (a) Mediation and (b) Arbitration as Alternative Dispute Resolution mechanisms. These private and objective measures can greatly improve legal certainty in the face of potential judicial uncertainty. Mediation and Arbitration are recognized under both domestic and international law, which allows for the resolution of commercial disputes with greater certainty, efficiency, and neutrality, thereby reducing the risks associated with an uncertain judicial landscape.
Links of interest:
We would be pleased to contact you to answer any questions or analyze your specific situation.
We remain at your service.
Sincerely,