MEXICO CITY (Reuters) - The proposed reform of Mexico's judiciary threatens the country's democracy and its vital trade relationship with the United States, the top U.S. diplomat in Mexico said on Thursday, while his Canadian counterpart warned of investor worries.
The controversial reform, set for a congressional vote in September, proposes that judges, including all Supreme Court justices, be elected by popular vote.
"Based on my lifelong experience supporting the rule of law, I believe popular direct election of judges is a major risk to the functioning of Mexico's democracy," U.S. Ambassador to Mexico Ken Salazar said in a statement.
Salazar said the reform could make Mexico's judiciary more vulnerable to influence from organized crime and undermine confidence in the country's judicial system.
"Direct elections would also make it easier for cartels and other bad actors to take advantage of politically motivated and inexperienced judges," he said.
The comments are the strongest to date by Mexico's largest trading partner and represent a significant ratcheting up of tensions between the two countries over the issue.
Canadian Ambassador Graeme Clark also criticized the reform at an event on Thursday.
"My investors are concerned, they want stability, they want a judicial system that works if there are problems," he said.
Clark stipulated that the two nations' governments have "excellent relations" and he was only transmitting investors' concerns.
Mexico's presidency and foreign ministry did not immediately respond to a request for comment.
Mexican ruling party Senator Ricardo Monreal told journalists on Thursday evening, though, that he thought Salazar had "not read the reform all the way through" and argued that judges were elected in several U.S. states.
Incoming President Claudia Sheinbaum, who takes office in October, has defended outgoing President Andres Manuel Lopez Obrador's judicial proposal, saying she agrees judges should be elected.
Salazar said the debate around the reform, and the politics of the process, were it to be approved, would threaten the U.S.-Mexico trade relationship, "which relies on investors' confidence in Mexico's legal framework."
"Any judicial reform should have the right kinds of safeguards that will ensure the judicial branch will be strengthened and not subject to the corruption of politics," Salazar said.
Lopez Obrador argues the reform, which proposes that judges be elected via votes in 2025 and 2027, will help combat impunity and corruption.
But markets have been on edge since Lopez Obrador's Morena party won more congressional seats than forecast in a June national election, effectively guaranteeing it the ability to pass constitutional reforms when the new Congress takes office in September.
Mexico's stock market fell about 0.6% and the peso about 1 % on Thursday.