Judicial reforms strain Mexican-U.S. ties, spook investors

Controversial judicial reforms promoted by Mexico's outgoing president are straining diplomatic relations with the United States, its neighbor and key trading partner, while also rattling financial markets.

US Ambassador to Mexico Ken Salazar has warned that the changes would "threaten" a trade relationship that "relies on investors' confidence in Mexico's legal framework."

The reforms, under which judges would be elected by popular vote, could pose "a major risk to the functioning...