South American state (7)
I believe the answer is:
ecuador
'south american state' is the definition.
(country in South America)
This is all the clue.
(Other definitions for ecuador that I've seen before include "Quito's country" , "Quito's nation" , "Is Cora due out in South America?" , "The state capital is Quito" , "Country of the Galapagos Islands" .)