FACTBOX: "Buy American" provision in U.S. stimulus bill

(Reuters) - The U.S. Congress is expected to approve an $787 billion economic stimulus, including a Buy American provision that has aroused concerns among trade partners and some U.S. business groups.

Here are details of the provision:

* The Buy American provision imposes a general requirement that any public building or public works project funded by the new stimulus package use only iron, steel and other manufactured goods produced in the United States.

* The stimulus package includes about $48 billion in transportation projects, roughly $30 billion in infrastructure improvements and additional other spending that could be covered by the Buy American provision.

TRADE PACT COMMITMENT CLAUSE

* The bill stipulates that the Buy American provision be "applied in a manner consistent with United States obligations under international agreements."

* That is further explained in separate report language on the bill to clarify that it requires the United States to comply with obligations under the World Trade Organization's government procurement agreement and under the North American Free Trade Agreement and other U.S. free trade accords.

* The report language says products from least-developed countries would be treated in the same manner as countries with which the United States has formal trade commitments.

* The trade compliance language gives members of the WTO's government pact such as the European Union, Japan, Canada, South Korea and Taiwan comfort they could provide material for a public works project funded by the stimulus bill.