Mexico's Economic Nationalism Gains Momentum as State Control Expands

In a move that could alter the course of the nation’s political and judicial landscape, Mexico’s legislative branch has accelerated a sweeping reform process, aiming to reshape its judicial institutions. This marks a significant step toward the long-term transformation of the Mexican state, furthering the objectives set in motion in September at the onset of the LXVI Legislature’s first ordinary session.

The latest legislative actions, focused on judicial reforms, have garnered widespread attention, particularly those that touch on the election of judges, ministers, and magistrates. These reforms signal a pivotal shift in the dynamics of the country’s judicial appointment process, granting greater democratic participation and influence to the electorate. As these reforms are introduced, they provide a new roadmap for the election and challenge of judicial decisions, aiming to ensure more transparency and fairness in Mexico’s legal framework.

Among the most significant reforms is the adjustment to the General Law of Electoral Institutions and Procedures, which governs the election of judges across Mexico. Previously, the election of high-ranking judicial officials such as Supreme Court ministers, magistrates of the Electoral Court, and judges on District and Collegiate Courts were largely in the hands of the political elite, often shrouded in a complex process of appointments and approvals that bypassed the will of the people.

Under the newly approved provisions, the election of these key judicial figures will be decided by popular vote, with citizens casting ballots directly to elect judges, magistrates, and ministers. These elections will be held on a national scale for high-ranking judicial officials like the ministers of the Supreme Court of Justice and the magistrates of the Electoral Tribunal. Meanwhile, judges on lower courts—such as District and Circuit Collegiate Courts—will be elected within their respective judicial circuits.

The reforms shift the responsibility of organizing the elections to the National Electoral Institute (INE), as well as Local Public Bodies. The INE will now oversee not only the election process but also ensure the transparency and fairness of the electoral day, overseeing the computation and certification of results. This initiative gives the citizens of Mexico the power to vote on the individuals who will interpret and uphold the law, allowing for a more direct relationship between the judiciary and the public.

The objectives of these reforms are clear: to ensure that the appointment of judges and ministers reflects the will of the people, thereby creating a more transparent and democratic judicial process. By extending the right to vote on judicial appointments to the general population, the reforms introduce a new level of public accountability into the legal system.

Complementing the election reforms, the Legislative Branch also introduced changes to the General Law of the System of Means of Challenge in Electoral Matters, aimed at updating and expanding the scope for legal challenges within the electoral process. Under the new provisions, individuals and organizations will have the ability to challenge the actions of federal electoral authorities when they violate constitutional or legal norms during the election of judicial officials.

One of the most notable aspects of this reform is the introduction of the "non-conformity trial" as a legal recourse for disputing the election of judicial officials, including the president of the Mexican Republic and members of the highest courts. This trial will allow affected parties to bring forward their grievances against decisions made during the judicial election process. Importantly, the trial will not produce suspensive effects, meaning the election process will continue even while a legal challenge is under review.

While this measure may seem technical, its broader implications are significant. It provides a new layer of legal protection for electoral candidates, guaranteeing that their rights will be upheld if an irregularity or legal violation occurs. It also creates an opportunity for parties to contest the results of judicial elections, ensuring that those who are selected for judicial office meet the standards of law and integrity expected of them.

These updates to the electoral challenge system further clarify the legal framework for the election and dispute of judicial appointments, ensuring that Mexico’s democratic processes remain intact and robust. Citizens and candidates alike will benefit from this enhanced transparency, creating a stronger system of checks and balances within the country’s judicial and electoral systems.

Social and Economic Reform

The Plenary of the Chamber of Deputies validated reforms to two pivotal articles of the Mexican Constitution—Articles 4 and 27—aimed at expanding and strengthening social welfare initiatives. With unanimous support, the reforms address critical issues related to social justice, the well-being of the elderly, and support for those with permanent disabilities.

A key aspect of these changes is the reduction of the eligibility age for older adults to receive a pension. Previously, citizens aged 68 and older could access these benefits; under the new provisions, this age threshold has been lowered to 65, offering relief to an estimated 1.5 million additional older adults in need of financial assistance. This adjustment is a response to the growing demands for greater financial security among Mexico’s aging population, many of whom live in poverty and face challenges accessing healthcare and social services.

Additionally, the reform extends financial support to people with permanent disabilities, including those under 18. The measure ensures that individuals with disabilities will receive pensions to enhance their economic well-being, with a focus on the most vulnerable in society, including children. These steps align with the government’s broader mission of ensuring that social rights are guaranteed for all, particularly for Mexico's most marginalized citizens.

Beyond the pension benefits, the reform also targets agricultural communities. The State is now obligated to guarantee permanent support for farmers who cultivate land for the planting of fruit trees, timber trees, and other species requiring processing. This support aims to help those in rural areas who face economic uncertainty and who have historically been underserved by government programs. This comprehensive approach underscores the government's commitment to alleviating rural poverty and ensuring that small-scale farmers can thrive.

The debate over the role of state-owned enterprises in Mexico has long been a contentious issue. The latest reform to Articles 25, 27, and 28 of the Mexican Constitution makes significant changes in this area, marking a decisive shift in how the country views public companies. By a qualified majority of 353 votes, the Chamber of Deputies voted to redefine “productive companies of the State” to “public companies of the State,” signaling a new direction for the state’s involvement in economic development.

This change not only alters the legal framework for public companies but also sets the stage for deeper involvement in key sectors such as energy, mining, and telecommunications. A particularly notable aspect of the reform is its emphasis on the electric industry. The new legislation dictates that the public company, not private enterprises, will be the primary player in the electricity sector. This underscores the administration’s commitment to social responsibility and ensuring that electricity remains affordable and accessible to all Mexicans.

However, the reform also acknowledges the role of private enterprises, outlining a regulatory framework for private participation in other parts of the electric industry. Importantly, the reform guarantees that private companies’ roles will not supersede the state’s responsibility to provide universal access to electricity, particularly in remote and underserved regions.

Moreover, the reform makes it clear that the state’s activities in strategic areas like lithium mining and state-run internet services will not constitute monopolies. These sectors, essential to the nation’s future economic development, are deemed too vital to be left solely in private hands, especially given their potential to impact national security and energy independence.

The role of the Federal Telecommunications Institute in granting concessions for radio broadcasting and telecommunications also remains intact, ensuring that these critical services continue to be regulated in a way that serves the public interest.

One of the most significant legislative shifts in October was the restoration of the state’s leadership in the railway sector. With unanimous approval, the Chamber of Deputies elevated the use of railroad tracks for passenger trains to a constitutional level under Article 28. This decision marks a sharp reversal of the privatization policies implemented in the 1990s, which led to the prioritization of freight transport over passenger service.

By giving passenger transport priority, the reform seeks to address the growing need for affordable, efficient public transportation in Mexico. The State will now oversee the provision of passenger services, with the potential for private companies currently holding freight transport concessions to also provide passenger services. This move aligns with the broader goal of expanding and improving public transportation infrastructure, which is vital for addressing issues of urban mobility and environmental sustainability in the nation’s largest cities.

Perhaps one of the most widely discussed reforms of October was the unanimously approved change to Mexico’s Federal Labor Law, often referred to as the "Chair Law." The reform, which addresses the physical toll of standing for extended hours in the workplace, introduces important protections for workers, particularly those in retail and service industries, where employees can spend eight or more hours on their feet during workdays.

The amendment to Article 138 of the Federal Labor Law requires employers in the service, commercial, and similar work sectors to provide a sufficient number of seats or chairs with backrests to employees. Workers are now entitled to seating options during their duties or designated break periods, a policy that aims to reduce physical strain and improve overall well-being.

This reform is seen as a significant step forward in improving workplace conditions for millions of Mexican workers, especially those in physically demanding jobs that often go unrecognized in terms of occupational health. It highlights the government’s focus on worker welfare, further cementing its commitment to improving labor rights.

Legislative Supremacy and Housing Rights

One of the most significant and controversial reforms passed by the Chamber of Deputies in October focuses on affirming the supremacy of the legislature over the judiciary. In an unprecedented move, the ruling Morena party presented a reform to the Constitution that seeks to prevent the judiciary—particularly the Supreme Court of Justice of the Nation (SCJN) and other courts—from challenging constitutional amendments.

The reform, which modifies Articles 103, 105, and 107 of the Mexican Constitution, has raised concerns among legal experts and opposition lawmakers alike. The changes effectively establish that controversies, actions of unconstitutionality, and amparos (appeals for constitutional protection) cannot be used to challenge reforms to the Constitution, including the voting process or deliberative actions by the legislature. These reforms would apply to any changes made to the Magna Carta, preventing judicial bodies from scrutinizing the procedures, substance, or form of such changes.

The legal implications are far-reaching. As stipulated in the reform’s transitory articles, any ongoing trials, appeals, or consultations challenging constitutional amendments at the time the law comes into force will be automatically dismissed. This provision reinforces the legislative body’s final authority in the amendment process, removing judicial review as a check on constitutional changes.

The main objective behind this reform is to prevent the judiciary from blocking amendments to the Constitution, a move that the government argues would ensure legal certainty and prevent judicial overreach. By reaffirming the primacy of the legislature—the body responsible for initiating constitutional reforms—the government aims to avoid arbitrary interpretations by courts, which critics argue could interfere with the democratic will of the people as expressed through elected representatives.

This reform also reinforces the notion of “constitutional supremacy,” asserting that once changes to the Constitution have been passed by the requisite majority in the legislature and local legislatures, those changes should not be subject to judicial challenge. The reform effectively redefines the relationship between the legislature and the judiciary, limiting the judiciary's ability to invalidate constitutional changes and consolidating legislative power.

The introduction of this reform has sparked heated debates about the potential risks of unchecked legislative power, with opponents warning of the erosion of judicial independence and the separation of powers. Supporters, however, argue that it is necessary to ensure the government’s political agenda is not thwarted by judicial activism or procedural hurdles. Regardless of the ongoing controversy, the reform represents a clear shift toward a more powerful and autonomous legislature in Mexico’s political system.

In a move aimed at improving the living conditions of Mexico’s working class, the Chamber of Deputies also validated a historic reform to Section XII of Section A of Article 123 of the Constitution, which focuses on the right to decent housing. This reform guarantees that all workers—regardless of their industry—are entitled to adequate housing, a provision that aims to reduce the significant social inequalities in Mexico’s housing market.

Under the new provisions, every agricultural, industrial, mining, and other types of work companies will be required to provide workers with access to housing. The reform shifts responsibility onto employers, obligating them to make contributions to the National Housing Fund. These contributions will be used to establish housing deposits for employees, ensuring that workers have access to affordable and decent housing options.

The reform also outlines the creation of a new law that will regulate housing access, including social rental housing. This law will set clear guidelines on how workers can obtain housing, with a focus on affordability and accessibility. One of the most significant elements of this law is the limitation on social rental costs, which will not exceed 30% of a worker’s salary. This provision aims to ensure that housing costs remain within reach for all workers, preventing them from being financially burdened by excessive rent.

Additionally, the reform grants workers the right to acquire the homes they live in as property, thus facilitating long-term security for families and providing an avenue for wealth accumulation. The ability to own a home has long been a distant dream for many in Mexico’s working class, and this new reform opens the door to greater financial stability for workers who otherwise would have faced barriers to homeownership.

The housing reform represents a significant shift in the social contract between workers and employers. It reflects a growing recognition of the need to address the gap between rising living costs and stagnant wages, a challenge that has left many Mexican workers struggling to afford basic necessities, let alone adequate housing. By mandating employer contributions to the housing fund, the government aims to bridge this gap and promote social equity in an area that has long been neglected.

These two major reforms—legislative supremacy and decent housing for workers—demonstrate the Mexican government’s commitment to consolidating power in key areas and addressing longstanding social issues.

The reform affirming the supremacy of the legislature represents a fundamental shift in Mexico’s system of governance. It essentially limits the scope of judicial oversight, raising questions about the balance of power between branches of government. While supporters argue that this reform is necessary to streamline the constitutional amendment process and avoid judicial interference, critics worry that it could undermine judicial independence and the system of checks and balances that has traditionally characterized Mexico’s political structure.

On the other hand, the housing reform is a bold step toward addressing Mexico’s housing crisis, which has left millions of workers living in inadequate conditions. By making housing a constitutional right for workers and ensuring that it remains affordable, the reform has the potential to significantly improve the lives of millions of Mexicans. However, the success of this initiative will depend on its implementation and the ability of the government to effectively manage the National Housing Fund and regulate the housing market.

Both reforms, while controversial in their own right, represent a forward-looking vision for Mexico, one that seeks to balance the power of the state with the needs of its citizens. As these changes move through the legislative process, they will continue to shape the country’s legal, social, and political future.

In-text Citation: (Mondragón, 2024, pp. 6-9)