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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 the United States it's a derogatory 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. It is used in México.
Gabacha is also a word used in Guatemala for apron. In Costa Rica, and also in Guatemala, it is used to refer to certain types of coats, such as that of a doctor, a kindergarten student, a lab coat or a graduation vest.
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