It won't come up in the debate, but it's an issue that matters. In other words, the outgoing President Andres Lopez-Obrador of Mexico has stuck his successor with "judicial reforms" that may hurt the economy. Let's get an update via Pulse News Mexico:
According to new reports from U.S. newspaper the Wall Street Journal (WSJ) and Mexico’s National Auto Parts Industry (INA), many global firms who were seeking to invest and expand into Mexico have now put their plans on pause due to the potential economic and regulatory impact of President Andrés Manuel López Obrador’s (AMLO) controversial judicial reform.
The reform, which proposes the popular election of Mexico’s federal judges and magistrates, passed through the Chamber of Deputies last week and is expected to be voted on in the Mexican Senate on Tuesday, Sep. 7. The WSJ report revealed that U.S. enterprises alone have suspended approximately $35 billion in economic investment in Mexico due to the proposed changes to the judiciary.
Sorry, incoming president-elect Claudia Sheinbaum, but you are stuck with AMLO's policies. Also, the new President will have to deal with the consequences of explaining to investors that their concerns are not valid.
So who wins? That's the "64,000 peso" question like my late mother used to say. The new President will have to decide whether $35 billion should come to Mexico or go somewhere else.
Last but not least, President Trump is probably going to invite those companies to bring those investments to the U.S. where we don't vote for judges in the Supreme Court.
It's a nightmare in waiting. We will see how long the incoming president will stand by her man AMLO.
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