Mexico has an incredibly rich colonial and folk-art tradition. While not necessarily considered art by the people who make and use it, traditional indigenous clothing is beautiful and travelers and collectors are increasingly able to buy it in local shops and markets. Prices for these items can be high, for the simple fact that they are handwoven and can literally take months to complete.
San Cristóbal de las Casas [1] is an especially good place to purchase high-quality textiles from around the state; you’ll also find a variety of beautiful pottery, wood carvings, and amber jewelry.
Links:
[1] http://www.moon.com/destinations/chiapas/san-cristobal-de-las-casas