In Canada, it contains an American possession (3)
I believe the answer is:
can
'in canada' is the definition.
'CAN' can be an answer for 'canada' (common abbreviation eg in sporting competitions). I'm not certain of the 'in' bit.
'it contains an american possession' is the wordplay.
'CAN' is hidden within the letters.
However, I am unsure how the hidden word is indicated.
Can you help me to learn more?
(Other definitions for can that I've seen before include "Airtight metal container" , "let go in the US" , "has power" , "sack from abroad" , "(Tin) container" .)