"There is no compensation scheme here"
medium likelihoodThe carrier says the country has no passenger-rights regime, or that its conditions of carriage are the only thing that applies.
What answers it
That is not right: Ley 5150 (Ley General de Aviación Civil) and Ley 7472 (Promoción de la Competencia y Defensa Efectiva del Consumidor) govern this. Ask the carrier to state, in writing, which provision it says applies to your flight and what it provides. A carrier that will not answer that question in writing is one you take to the regulator.
Ley 5150 (Ley General de Aviación Civil)