Country engaged in informal talks (5)
I believe the answer is:
malta
'country' is the definition.
(Malta is an example)
'engaged in informal talks' is the wordplay.
'engaged in' says the answer is hidden in the clue.
'MALTA' can be found hidden inside 'informal talks'.
(Other definitions for malta that I've seen before include "A Med. island" , "GC island" , "Mediterranean island, capital Valletta" , "Island European country" , "Mediterranean island republic" .)