Saturday, July 20, 2024

Sheinbaum says investors in Mexico have ‘nothing to worry about’

Investors in Mexico have “nothing to worry about,” President-elect Claudia Sheinbaum said Tuesday as she sought to calm concerns over a proposed judicial reform that will be considered by Congress later this year.

Markets have reacted nervously to the comprehensive victory of Sheinbaum and the ruling Morena party in the June 2 elections. The Mexican peso slumped to as low as 18.97 to the US dollar on Wednesday morning, a depreciation of over 10% compared to its pre-election level.

Claudia Sheinbaum and Andrés Manuel López Obrador hold hands in the air
Sheinbaum met with President Loṕez Obrador on Monday. (Cuartoscuro)

After meeting with President Andrés Manuel López Obrador on Monday, Sheinbaum said that there would be “broad consultation” on the proposed judicial reform that would allow citizens to directly elect Supreme Court justices and some other judges.

The constitutional bill is set to be considered by the Congress in September, when Morena and its allies will have a supermajority in the lower house and a large majority in the Senate, putting them in a strong position to approve that proposal and others put forward by López Obrador in February.

At a press conference on Tuesday, Sheinbaum addressed investor concerns about the proposed judicial reform — which critics say will reduce checks on executive power — as well as other planned constitutional changes, including ones to disband a number of government autonomous agencies and overhaul Mexico’s electoral system.

“My message is that investors have nothing to worry about,” said the president-elect, who will be sworn in on Oct. 1.

Claudia Sheinbaum with Walmart Mexico executives at a conference table
Sheinbaum shared on her X account that she met with Kathryn McLay, President and CEO of Walmart International, on Monday, and also mentioned this at her Tuesday press conference as a show of confidence from investors. (Claudia Sheinbaum/X)

Sheinbaum said that the so-called “fourth transformation” political project she now leads seeks “more justice in all senses: social justice, environmental justice, justice for women [and] a justice system that works.”

“So national and foreign investors have nothing to worry about, their investments in Mexico are safe, obviously within the framework of our laws,” she said.

“They have no reason to be concerned about a reform in the judicial power because it’s ultimately about building a better justice system for our country,” Sheinbaum said.

“.. The important thing to know for those who are going to invest in Mexico is that there is investment certainty in our country, there is social and political stability,” she said.

The president-elect expressed confidence that foreign companies will continue to relocate to Mexico as part of the growing nearshoring trend because the rule of law will continue to be respected, the economy is strong and the government will always be open to dialogue.

She has previously said that nearshoring will help drive significant economic growth during the 2024-30 presidential term, but has stressed that Mexico wants the kind of investment that generates “wellbeing” for its people.

Sheinbaum made similar remarks on Tuesday, saying that there is an “agenda” for the Mexican people and a planned “national project” to pursue.

Sheinbaum discusses trade, migration and security with US officials 

Sheinbaum held her press conference on Tuesday after meeting with United States Ambassador to Mexico Ken Salazar and U.S. Homeland Security Advisor Elizabeth Sherwood-Randall.

Omar García Harfuch, who served as security minister in Mexico City during Sheinbaum’s mayorship, and Juan Ramón de la Fuente, Mexico’s representative to the United Nations and the president-elect’s transition coordinator, also attended the meeting.

Sheinbaum told reporters that they discussed trade, migration, women’s issues and security – including the entry of firearms to Mexico from the U.S. – but didn’t reach any agreements.

Claudia Sheinbaum stands with members of her team and a US delegation
Sheinbaum met with U.S. Ambassador Ken Salazar (far right) and Homeland Security Advisor Elizabeth Sherwood-Randall on Tuesday to discuss the bilateral relationship, accompanied by Omar García Harfuch (far left) and Juan Ramón de la Fuente (left of center). (Ken Salazar/X)

She described the talks as “informal” and cordial. Sheinbaum said she expressed her “interest” in continuing with the high-level bilateral dialogue once she becomes president.

Mexican and U.S. officials have held a number of high-level security and economic dialogue meetings during López Obrador’s presidency.

Sheinbaum also said she would maintain López Obrador’s focus on addressing the root causes of migration as a means to stem the flow of asylum seekers to the Mexico-U.S. border.

The current president has urged the United States government to allocate more resources to development programs in Latin America and the Caribbean, and Sheinbaum said “we will continue to insist on development cooperation” from the U.S.

The president-elect said on social media that Mexico would continue its “policy of friendship, dialogue and understanding” with the United States, adding that there would be “respect for our sovereignty.”

Ambassador Salazar said that he and Sherwood-Randall had “very good and friendly” talks with Sheinbaum and her team about the “ties between our nations and shared values, reaffirming our spirit of cooperation and that we are family.”

With reports from Reforma, El Universal and El Financiero


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