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Will Mexico’s court overhaul hamper its economy?
Mexico’s senate voted 86-41 on Wednesday to approve a controversial judicial overhaul that will require the nation’s judges to stand for election in order to keep their jobs. Critics fear this will politicize Mexican justice and scare off investors crucial to the country’s prosperity. The peso weakened by 1% on Tuesday, and it is down 15% since Mexico’s June election, leaving investors worried that their assets might not be protected and that the reform could cause problems with the all-important US-Mexico-Canada Agreement on free trade.
Incoming President Claudia Sheinbaum – she takes office on Oct. 1 – attempted to set markets at ease, saying “national and foreign investors don’t have anything to worry about,” and claiming the reforms will “strengthen the delivery of justice in our country.”
Eurasia Group country expert Matías Gómez Léautaud says the reforms will “open the door for the political capture of the judiciary as a whole, the intermission of criminal groups, as well as the consolidation of monopolistic practices.”
“Businesses operating in Mexico will struggle to have a fair trial on any given issue in which they have to reach an arbitration process,” he notes.
The only other country where top justices are elected, Bolivia, is hardly the poster child of a stable, investable democracy, and its Constitutional Court has become a tool of the ruling party to maintain power.
Sheinbaum has consistently said she is committed to seeing the reform through despite criticisms. Federal and supreme court justices will stand for election in two cycles, in 2025 and 2027, which bracket scheduled USMCA negotiations in 2026. We’re watching whether the decision sparks more protests – and how it impacts Mexico’s economy and free trade talks.
Mexico elects first woman president — will she bring change?
Claudia Sheinbaum made history on Sunday, with preliminary results showing she won roughly 60% of the vote to become the first woman elected Mexico’s president. Her victory was never really in doubt, given the support she enjoyed from outgoing and immensely popular President Andrés Manuel Lopez Obrador. But that same popularity means it will be hard for Mexico’s first female president to emerge from her predecessor’s shadow.
Mexican presidents are limited to a single six-year term, but AMLO has pitched Sheinbaum as his loyal successor. He’s promised she will carry on the work of what he calls Mexico’s populist “Fourth Transformation” (the first three being Mexican Independence in 1821, the civil war of 1858-1861, and the revolution 1910-1917).
Her vote more than doubled the runner-up’s, and her party took 251 seats in the lower house and 60 in the Senate, which should give her so-called “qualified” majorities in both houses alongside coalition partners. In other words, she can change the constitution, and perhaps enact some of the controversial changes AMLO failed to implement.
When the fiesta dies down at Morena headquarters, Sheinbaum will face demands from voters to tackle cartel violence, the country’s historically high murder rate, and immigration – problems she has slim chances of resolving. On the latter issue, she’s at the mercy of Washington, as folks crossing her southern border with Guatemala are trying to get to the United States, not stay in Mexico. She won’t have a clear picture of the policy environment she can act within until the gringos vote in November.
And she’ll need to break away from AMLO’s “hugs not bullets” policy, which has utterly failed to protect Mexicans, especially women and girls, from the predations of drug traffickers. The trick will be doing so without implicitly criticizing her former boss.
“The challenge is to follow Lopez Obrador, manage an extremely challenging security situation, ensure macroeconomic fundamentals remain sound and potentially deal with Trump,” said Eurasia Group analyst Daniel Kerner, who was at Sheinbaum HQ on Sunday. “And if she tries to do the constitutional reforms, economic and social stability will suffer.”
Viewpoint: AMLO looms large in Mexico’s upcoming elections
Ahead of the June 2 elections, two accomplished women, the ruling party’s Claudia Sheinbaum and the opposition’s Xochitl Galvez, are vying for the distinction of becoming Mexico’s first female president. Meanwhile, criminal organizations trying to assert their influence in down-ballot races are threatening and killing a record number of candidates for local office.
Yet there is an even bigger presence shaping the outcome of these elections: outgoing President Andres Manuel Lopez Obrador, popularly known as AMLO. Constitutionally limited to a single six-year term in office, the immensely popular leader appears to have positioned his leftist Morena party to dominate Mexican politics for another six years. We asked Eurasia Group expert Matias Gomez Leautaud to explain.
What would you say are voters’ main concerns?
Across every single poll, violence and insecurity are the top concerns, followed by the state of the economy or corruption. But what we’re seeing is that this preoccupation with crime does not seem to be influencing voter intentions in races at the national level or the state level, where this concern is most acute. You see this in states with terrible security situations governed by Morena, such as Tabasco and Chiapas, and by opposition parties, such as Guanajuato and Jalisco.
Then what is driving voter intentions?
One factor is polarization, which allows ineffective state governments to remain in power because voters perceive the alternative to be worse. But a bigger factor is the influence of Lopez Obrador, who has shifted the political environment in Morena’s favor. In the presidential race, he has been successful at positioning his protégé Sheinbaum as the candidate of continuity. A former mayor of Mexico City, she was not too well known in the rest of the country. So, starting a few years ago, the party has taken every opportunity to get her in front of voters at events outside the capital.
And how has Sheinbaum tried to position herself as the candidate of continuity?
A physicist by training, Sheinbaum got her start in politics working for Lopez Obrador when he was the mayor of Mexico City. Ahead of these elections, Sheinbaum has been disciplined in her messaging, promising to maintain and build on the president’s legacy. She has even mimicked his slow style of speaking on occasion, and once during a speech in Tabasco, Lopez Obrador’s home state, she even tried to replicate his accent. (Tabasco is a rural state with a large indigenous population in the south of the country.) These efforts to step into Lopez Obrador’s shoes have been successful; the polls suggest she could get more votes than he did in 2018.
Why is Lopez Obrador so popular?
With his rhetorical attacks against traditional political and economic elites, expansion of social programs, and hikes of the minimum wage, Lopez Obrador has created a persona of a “man-of-the-people” looking out for workers’ rights. Despite the lack of feasibility of most of his pet infrastructure projects, voters perceive him as an effective president who gets things done, unlike his predecessors.
Moreover, with his slow speech, thick Tabasco accent, and frequent jokes, Lopez Obrador has brought a new folksy style to Mexican politics that his supporters love. Millions tune in every morning to the mañaneras, press briefings that set the agenda for the country’s daily news coverage. For two hours, the silver-haired president expounds on the issues of the day, takes softball questions from friendly journalists, and mixes it up a little with jokes and music. On one memorable occasion, he responded to a US demand for trade dispute talks over Mexico’s energy policies by playing a popular Cumbia song called “Uy, qué miedo” (Ooo, so scared). As a video of the song played on a screen behind him, the president joined in the laughter of those in attendance (fun fact: In 2023, Lopez Obrador was the most-watched Spanish-speaking streamer on YouTube in Latin America).
He has also drawn accusations of authoritarianism, right?
A key part of Lopez Obrador’s agenda has been to centralize more power in the presidency, and his administration has proposed legislative changes to the electoral framework, the judiciary, and other institutions that have eroded checks and balances. At the same time, Lopez Obrador’s treatment of critical journalists has grown increasingly heavy-handed. He has testy exchanges with them at the mañaneras and on a couple of occasions has publicly disclosed their telephone numbers and other personal information. Some Mexican newspapers and television stations have quietly removed critical voices.
What is the state of the opposition?
In response to the 2018 landslide victory by Lopez Obrador and his upstart Morena party, the country’s traditional political formations failed to seize on the opportunity to rethink their approach to politics. Previous presidents and their advisers have had technocratic profiles. They studied abroad and were profiled in the media wearing nice suits and expensive watches. Though they carried out pro-market reforms most economists thought necessary, they failed to explain them in terms that ordinary people could understand. Currently, their proposals are just outright opposition to Lopez Obrador’s policies, some of which are very popular among voters. With no promise of a better future, the opposition remains focused on returning to a past that most voters don’t want.
Is Xochitl Galvez an effective candidate?
The opposition probably stumbled into the best candidate it could have. She was not initially the preferred choice of any of the three parties that make up the main opposition coalition, but she ran an effective internal campaign and secured the nomination. There was probably a political calculation that the coalition should field a female candidate to take on Sheinbaum. And Galvez has an inspiring personal story of someone who grew up in a poor village, won a scholarship to the university, and became a tech entrepreneur. Yet she has struggled to perform the difficult balancing act of distancing herself from the discredited opposition parties while retaining their support.
How long can Morena continue to dominate Mexico’s politics?
If Sheinbaum wins, she will not be as strong a president as Lopez Obrador and will face more spending constraints after the expansion of social welfare programs under the current administration. This will open an opportunity for the opposition to win back some voters. In addition to the presidential and congressional races on June 2, it will be important to monitor the results of nine governor races. If Morena is able to win most of them, it will be the overwhelmingly dominant political force in the medium term. But if it loses in key states such as Veracruz or Mexico City, this would be a sign that voters may grow disaffected from Morena sooner.
Edited by Jonathan House, Senior Editor, Eurasia Group
Mexico’s presidential front-runner and the politics of violent crime
In June 2022, a man fleeing a drug gang took refuge inside a church in a remote region of northern Mexico. Armed men followed him into the church, killed him, and murdered two Jesuit priests who tried to intervene.
That event has since strained relations between the Catholic Church and President Andres Manuel López Obrador, whom church leaders blame for failing to contain the country’s still-high rates of violent crime.
López Obrador’s presidency will end – he’s term-limited – later this year following an election to choose his successor. The popular leader has endorsed former Mexico City Mayor Claudia Sheinbaum of his Morena party, and she is the heavy favorite in June’s election.
This week, all three presidential candidates signed a document entitled “Commitment for Peace,” drafted by Mexico’s Roman Catholic leadership, that calls for new efforts to lower the country’s violent crime rate. But Sheinbaum, beating back implicit criticism of López Obrador’s failure on the issue, noted that she disagreed with the church’s claim that Mexico suffers a “profound crisis of violence.”
López Obrador’s security minister reported in January that the country’s homicide rate fell 10.8% in 2023, but Mexico's 29,675 murders last year still averaged 81 per day. The challenge of violent crime, and the delicate political dance around it, will continue.Is she Mexico’s next president?
A year from now, Claudia Sheinbaum is likely to be Mexico's next president. That’s partly because she’s widely considered the preferred choice of the still-remarkably popular current president, Andrés Manuel López Obrador, who has a 59% approval rating after four years in office and has unified leadership within his Morena party.
But it’s also because Sheinbaum is an undeniably impressive candidate who’s built a solid reputation as the leftist mayor of Mexico City. Like López Obrador, she pledges to “shrink the great inequalities” that have defined Mexican society throughout its history.
First, she must fend off challenges from within Morena from Foreign Secretary Marcelo Ebrard and Interior Secretary Adán Augusto López, but her commanding polling lead over both men and implied support from (officially neutral) López Obrador signal that’s likely to happen.
Then, she’ll have to defeat a unity opposition candidate, but given how little traction opposition parties have established against Morena, she’ll likely enter the race next year as a clear favorite.
If she wins next July, she’ll be the first female and first Jewish president in Mexico’s history. She’ll also be the first physicist. Herein lies the first of the two important differences between Sheinbaum and López Obrador, a president who was infamously cavalier about the public health risks posed by COVID and who has relied heavily on state-owned oil company PEMEX to help realize his populist vision for a more economically equitable Mexico.
In Mexico City, Sheinbaum took a much more science-based approach to the pandemic, with masks and social distancing as part of her virus management strategy. As for fossil fuels, Sheinbaum, who holds a Ph.D. in engineering, has worked on the Intergovernmental Panel on Climate Change, which shared the 2007 Nobel Prize. That’s the foundation of her commitment to moving Mexico toward environmental sustainability.
The other difference is all about politics. Love him or hate him, López Obrador is a brilliant politician with a common touch. He knows how to speak over the heads of political elites to mobilize support among working-class voters.
Does Sheinbaum share that talent? If she wins in 2024, that will be the true test of her ability to create a presidency unlike any Mexico has seen before.AMLO wants a popular successor
Mexico's ruling Morena Party on Sunday decided to pick its 2024 presidential nominee in a unique way.
Instead of voting directly for the four declared candidates to succeed term-limited President Andrés Manuel López Obrador, aka AMLO, Morena members will weigh in via five polls — one internal survey and four private ones picked by each aspirant — to be conducted over the summer. Moreover, all candidates must resign their posts by Friday in order to enter the race, which will have no debates or allow endorsements by sitting officials.
Why? To avoid infighting and anyone manipulating surveys or using a government position to gain an unfair advantage.
But perhaps more importantly, this selection process smacks of overcompensation since after five years in power, Morena remains little more than a political vehicle for AMLO’s popularity. Although the party insists that the president won't handpick his successor, any hint of showing a preference for, say, Mexico City Mayor Claudia Sheinbaum, will be perceived as a de facto nod from the big boss that’ll matter more than any poll.
The winner will be announced on Sept. 6.
AMLO's party wins big Mexican state, looking good for 2024
Mexico's ruling Morena Party on Sunday won a bellwether election in the State of Mexico. This is good news for President Andrés Manuel López Obrador, aka AMLO.
For one thing, Mexico is the country's most populous state and has outsize weight in national politics as it hugs the federal capital, Mexico City, and its diverse composition signals wider voter trends. For another, the left-wing Morena defeated the centrist Institutional Revolutionary Party, or PRI, which had ruled the state for almost 100 years and is languishing in the political doldrums under AMLO.
But election night also delivered a warning for the president and his party: In a separate vote, the PRI walloped Morena in Coahuila. Although this border state is much smaller than the State of Mexico, Morena lost because party infighting resulted in the ruling coalition running three rival candidates, which siphoned key support from Morena's pick.
"AMLO will confirm that his political calculations continue to be spot-on as he managed to transfer his popularity to his party's candidate," says Eurasia Group analyst Matías Gómez Léautaud.
This is crucial for Morena to stay in power 13 months out from the presidential election since AMLO is limited to one term. It's an open secret that his preferred successor is Mexico City Mayor Claudia Sheinbaum, now the presumptive frontrunner despite some internal opposition. For Gómez Léautaud, "AMLO's overbearing presence and control will impede any schisms within the party to translate into rival candidacies from disaffected candidates."