The Goblins certainly don't seem organized enough to be a nation. And there were always more sentient races mentioned that didn't qualify for a seat on the Council of Seven.
Zandalor: First things first. This is the meeting hall of the Council of the Seven Races - orcs, imps, elves, lizards, dwarves, humans and all good wizards.
Lucian: Why just those races? Aren't hawk men, trolls or Halflings worthy of a voice on your council? And since when have wizards been a race? I thought any intelligent being could become a wizard.
Zandalor: I see that there is a lot of history that I must teach you if things are to become plain, Marked One. The original Council of Seven was formed from the most powerful intelligent races in Rivellon. Wizards were included as a gesture of courtesy. It's always best to be polite to us mages and, besides, the Council of Six Races and Assorted Magic-Users was too much of a mouthful.