Does this fix work?
I'm getting the same error. I've had a successfull transaction from US and Ca, one from Argentina just got blocked. My Paypal account is Swiss by the way.
Since I only sell downloadable files, I don't have shipping options. Anyway, I have imported the countries. Will let you know what happens!
I've also unchecked "Submit address information to PayPal to override PayPal stored addresses"
