African Growth and Opportunity Act

African Growth and Opportunity Act - Declares the support of Congress for: (1) encouraging increased trade and investment between the United States and sub-Saharan Africa; (2) reducing tariff and nontariff barriers and other obstacles to sub-Saharan and U.S. trade; (3) negotiating reciprocal and mutually beneficial trade agreements, including the possibility of establishing free trade areas that serve the interests of both the United States and the countries of sub-Saharan Africa; (4) focusing on countries committed to accountable government, economic reform, the eradication of poverty, and the development of political freedom; and (5) establishing a United States-Sub-Saharan African Economic Cooperation Forum.

Title I: Extension of Certain Trade Benefits to Sub-Saharan Africa - Amends the Trade Act of 1974 to authorize the President to designate a sub-Saharan African country as a beneficiary sub-Saharan African country eligible to receive duty-free treatment, through September 30, 2006, for any non-import-sensitive article (except for textile luggage) that is the growth, product, or manufacture of such country, if the President determines that such country: (1) has established, or is making continual progress toward establishing, a market-based economy, a democratic society, an open trading system, and economic policies to reduce poverty; (2) does not engage in gross violations of internationally recognized human rights or provide support for acts of international terrorism; and (3) otherwise satisfies applicable eligibility requirements.

(Sec. 101) Directs the President to monitor and review the progress of sub-Saharan countries to determine their current or potential eligibility under the requirements of this Act.

Waives the competitive need limitation with respect to eligible beneficiary sub-Saharan African countries.

(Sec. 102) Grants duty-free treatment, without any quantitative limitations, to textile and apparel articles (including textile luggage) imported from a beneficiary sub-Saharan African country, if such country: (1) adopts an efficient visa system to guard against unlawful transshipment of such goods and the use of counterfeit documents; and (2) enacts legislation or promulgates regulations that would permit U.S. Customs verification teams to have the access necessary to investigate allegations of transshipment through the country. Directs the President to deny trade benefits under this Act to any exporter that has engaged in transshipment with respect to textile or apparel products from a beneficiary sub-Saharan African country.

Directs the Customs Service to monitor, and report annually to Congress, on the effectiveness of certain anti-circumvention systems and on measures taken by sub-Saharan African countries that export textiles or apparel to the United States to prevent circumvention as described in article 5 of the Agreement on Textiles and Clothing.

Authorizes the President to impose appropriate remedies, including restrictions on or the removal of quota-free and duty-free treatment provided under this Act, in the event that textile and apparel articles from a beneficiary sub-Saharan African country are being imported in such increased quantities as to cause serious damage (or actual threat thereof) to the domestic industry producing like or directly competitive articles.

(Sec. 103) Directs the President to convene annual meetings between U.S. Government officials and officials of the governments of sub-Saharan African countries to foster close economic ties between them. Directs the President to establish a United States-Sub-Saharan African Trade and Economic Cooperation Forum which shall discuss expanding trade and investment relations between the United States and sub-Saharan Africa.

(Sec. 104) Directs the President to examine, and report to specified congressional committees, the feasibility of negotiating a free trade agreement with interested sub-Saharan African countries.

Title II: Revenue Provisions - Amends the Internal Revenue Code with respect to the special accounting rule allowing a taxpayer (otherwise required to use the accrual method) not to accrue any portion of amounts received for qualified personal services which (on the basis of experience) will not be collected, so long as the taxpayer does not charge interest or a penalty for failure to timely pay the amount charged. Limits this exception to the accrual accounting requirement to services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting.

(Sec. 202) Sets forth provisions involving returns relating to the cancellation of indebtedness by certain entities to include within the definition of "applicable financial entity" any organization a significant trade or business of which is the lending of money.