UPDATE 1-Congress made right move on Buy American-White House

WASHINGTON, Feb 12 - Congressional negotiators have come up with the "right compromise" on 'Buy American' provisions of the economic stimulus bill that have raised concern among U.S. trade partners, a White House spokesman said on Thursday.

"I think where we ended up with the Buy America provision is the right compromise that respects the Buy America laws that we've had on our books for many, many years while also ensuring that the language doesn't create unnecessary trade disagreements in a time of economic crisis," White House spokesman Robert Gibbs told reporters aboard Air Force One.

Although full details still had not been released, an industry group whose members include steel companies that have lobbied hard for the Buy American provision, said they were pleased with the final language agreed in Congress.

Scott Paul, executive director of the Alliance for American Manufacturing, said he'd been told by congressional aides the final deal broadly reflects the Senate version of the provision, which requires all public works projects funded by the stimulus bill to only use U.S.-made goods.

That's more expansive than the House of Representatives version, which required U.S.-made iron and steel.

At the same time, the final version includes Senate language requiring the Buy American provision be implemented consistent with U.S. international trade commitments.

"It's a strong Buy American provision that's consistent with our international trade obligations and it will ensure the benefits of the economic recovery legislation will be seen in our manufacturing sector," Paul said.