Fixes fight with El Salvador (7)
I believe the answer is:
scrapes
'fixes' is the definition.
(both can mean a dangerous situation)
'fight with el salvador' is the wordplay.
'fight' becomes 'scrap' (a scrap is a minor fight).
'with' is a charade indicator (letters next to each other).
'el salvador' becomes 'ES'.
'scrap'+'es'='SCRAPES'
(Other definitions for scrapes that I've seen before include "Jars" , "Predicaments" .)