The most common and most likely answer to this crossword clue is the 7 letter word ECUADOR
I've seen this crossword clue in The Daily Telegraph
E
C
U
A
D
O
R
More clues leading to the result ECUADOR
- Country set right after early euro trouble
- European Commission regularly ignored Uganda – or another country
- Country dancing, caroused with seconds to spare
- Doctor cured a leader of Oceanian country
- Country dancing: cure suppressing troubles
- Country dancing rodeo mostly welcoming cougar, oddly
- Nation having trouble in developing cure
- Land in trouble right after changing cue
- Country road bizarrely appended to old coin
- Revolutionary travelled across Gold Coast, originally a country
Buddy explains!

The straight part
We know that "S American country" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case s american country = ecuador.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.