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In Spain it is used as a pejorative reference to someone French, coming from the Catalan word gavatx which translates as foreigner.
In Mexico, gabacho refers to sugar cane chews that are white in color and are usually spit out (garbage) this line actually refers to Gabazo, which it really is the remaining fibers of any fruit once the juice is extracted.
In the United States, the word is a pejorative term used by Chicanos for white Americans. It is not widely used or understood by Spanish-speakers in the Americas outside of the United States and Mexico.
Gabacha is also a word used in Guatemala for apron.
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