Trade Preference Extension and Expansion Act of 2006

Trade Preference Extension and Expansion Act of 2006 - Amends the Trade Act of 1974 to extend the Generalized System of Preferences (GSP) Program from December 31, 2006, through December 31, 2007.

Amends the Andean Trade Preference Act to extend from December 31, 2006, through December 31, 2007 the duty-free treatment or other preferential treatment for beneficiary countries under the Act.

Amends the African Growth and Opportunity Act to change from mandatory to discretionary the authority of the President to terminate the designation of an eligible beneficiary sub-Saharan African country for failing to continue compliance with such Act. Requires the President to notify Congress, and allows him to proceed with termination only if Congress fails to prohibit it.

Authorizes the U.S. Trade Representative (USTR) to provide grants to U.S. nongovernmental organizations and private sector representatives to host the annual United States-Sub-Saharan African Trade and Economic Cooperation Forum.

Amends the African Growth and Opportunity Act (AGOA) to revise the designation for preferential treatment of apparel articles wholly assembled in one or more beneficiary sub-Saharan African countries from certain regional fabric or yarns. Specifies for such duty-free treatment apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more such countries.

Directs the President to develop a comprehensive plan addressing specified issues to promote economic reforms and development in sub-Saharan Africa.

Requires the President to establish additional duty-free access for beneficiary sub-Saharan African countries for agricultural products governed by current tariff-rate quotas.

Authorizes the Administrator of the United States Agency for International Development (USAID) to make grants to governmental and nongovernmental entities in beneficiary sub-Saharan African countries that can provide assistance, consultation, and equipment to local agribusinesses to enable their products to meet U.S. import requirements.

Requires the Secretary of Agriculture to direct the Foreign Agriculture Service to work with national African agricultural organizations to identify needs and implement programs that strengthen member ability to fulfill these needs in conjunction with export credit guarantee programs.

Amends the Export-Import Bank Act of 1945 to specify the use of resources of the Export-Import Bank of the United States and the Overseas Private Investment Corporation to encourage industrial and agricultural development in beneficiary sub-Saharan African countries.

Expresses the sense of Congress for USAID technical assistance in development of domestic tax policies in such countries to replace lost trade tax revenues resulting from trade liberalization.

Requires the Secretary of the Treasury and the USTR to seek negotiations with such countries for income tax treaties and bilateral investment agreements, respectively, with the United States.

Expresses the sense of Congress with respect to sub-Saharan Africa development and trade capacity.

Requires U.S. infrastructure and industry-building assistance needed for sustainable economic development of sub-Saharan Africa.

Sets forth the sense of Congress regarding the October 2005 election of Ms. Ellen Johnson Sirleaf as President of Liberia.