This isn't a dispute between the two countries, it's a dispute between the law enforcement of one country, and the people they're accusing of breaking the law from another country.
> It’s standard around the world that employees are not held personally responsible for the crimes of the corporation they work for.
Is it really so simple? Is all that the cartels missing to avoid persecution from the US gov't simply incorporating in their home state? Of course not.
Imagine that offered death by drones. You tell 'em who you want killed and they mail a package containing a drone that pops out and kills the person when it's delivered. Would it be reasonable to say "Yeah we can't arrest anyone from that company when they come to our country because they incorporated in another jurisdiction?"