U.S. Ambassador Ken Salazar expressed concerns on Thursday regarding a judicial reform proposed by Mexican President Andrés Manuel López Obrador, stating that it poses a threat to Mexico’s democracy and jeopardizes the long-standing commercial relationship between Mexico and the United States. Salazar emphasized the importance of a strong, independent, and non-corrupt judicial branch for the proper functioning of democracies. The proposed reform, which includes a provision for judges to be elected, has caused unrest among investors and financial institutions, leading to a decline in the value of the Mexican peso in currency markets.

Salazar warned that the proposed overhaul could potentially benefit criminal organizations and other malicious actors by exploiting inexperienced judges with political affiliations, causing economic and political instability for years to come. The reform would make it possible for individuals with a law degree and a few years of legal experience to become judges through popular vote, drawing concerns from various sectors about the potential for politically biased appointments and the erosion of checks and balances within the government.

Despite increasing opposition to the reforms, López Obrador’s party, Morena, holds a majority in the newly elected congress, which will consider the proposal after taking office on September 1. While the president-elect Claudia Sheinbaum has supported the reform, critics fear that it could consolidate power in the hands of the ruling party and undermine Mexico’s democratic institutions.

Salazar refrained from commenting on potential sanctions by U.S. authorities in response to the judicial reform in Mexico. López Obrador, known for his skepticism towards independent regulatory bodies, has criticized the judiciary as a “mafia” and defended the reform as a measure to combat corruption. However, Salazar stressed that the direct election of judges could pose a danger to Mexico’s democracy and impact the economic integration of North American countries.

Amid mounting criticism, thousands of judges and court employees have initiated strikes, leading to disruptions in federal courts. Major financial institutions in the U.S. and Mexico have also expressed reservations, with Morgan Stanley downgrading its investment recommendation for Mexico and Citibanamex warning of a potential threat to liberal democracy. Despite these concerns, López Obrador has dismissed the notion that the peso’s decline is linked to the judicial reform, attributing it to broader global market dynamics.