Mexican Legislature Passes Judicial Overhaul That Has Rattled Investors

Mexico’s legislature approved a contentious overhaul of the country’s judicial system, a reform that has rattled investors and drawn strong criticism in the U.S.

The Senate approved a constitutional amendment to replace all of the country’s federal judges in a raucous session that lasted past midnight. The country’s lower house passed the bill last week.

The Senate voted 86-41 in favor of the bill, which has worried investors and stirred fears that the measure could endanger the independence of Mexico’s courts and imperil trade and investment with the U.S.

The session was interrupted when protesters waving Mexican flags forced their way into the Senate building, prompting senators to move to an alternative venue that was heavily guarded by police. More than 50,000 court workers as well as federal judges and the Supreme Court have been on strike to protest the proposed overhaul.

More From The Wall Street Journal (subscription required):