MEXICO CITY (Reuters – Mexican President Andres Lopez Obrador indicated on Thursday that he was seeking agreements with the United States before meeting John Kerry, U.S. climate envoy. The dispute is over Mexico’s effort to change its energy laws.

Lopez Obrador stated that “I hope it will be a good meeting because there’re going to look for agreements” at a weekly news conference. This was ahead of the scheduled talks with Kerry on Thursday. Kerry is visiting Mexico City alongside a number of executives in U.S. oil and gas sectors.

The president stated, “We are not intransigent. We want to maintain good relations with both the United States government” and entrepreneurs.

Lopez Obrador stated that he would explain why his government is pushing legislation to strengthen country’s state run energy companies. He also noted how the conflict in Ukraine demonstrated the benefits of being in control over your national energy resources.

President Obama stated, “The state must not fail to meet its social responsibility.”

However, many long-standing Mexican diplomatic partners are alarmed at steps taken to support the Comision Federal de Electricidad (CFE), and state oil company Petroleos Mexicanoss (Pemex).

Kerry will be visiting the country for the second consecutive time within two months. He stated that he had asked Lopez Obrador last month to make sure his plans to increase state control over the power market do not violate the United States-Mexico Canada Agreement (USMCA).

Lopez Obrador claimed that Mexican businesses would have their contracts respected if they had the permission to do business in Mexico. While he did suggest they may have to operate on new terms if his reforms pass, it was not specific.