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What effect will Argentina’s judicial reforms have for business?

Analysts view the reforms as negative for business, but do not believe they will lead to more expropriations.

Argentina’s Congress approved broad reforms to the country’s judicial system on Wednesday, which some have warned could politicize the judiciary with negative implications for the rule of law in the country. The reforms will, among other moves, allow the popular election of judges and limit the use of legal injunctions against the state. In a country like Argentina, with a recent history of politically-motivated major expropriations, some analysts have suggested this could further harm the ease of doing business in the country. However, while concerned about the effect on Argentine judicial independence, analysts consulted by Latin Business Chronicle believe the risk of this reform easing expropriation may be overstated.

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