TRADE Act of 2005

Tariff Relief Assistance for Developing Economies Act of 2005 (TRADE Act of 2005) - Authorizes the President to designate Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Lao People's Democratic Republic, Maldives, Nepal, Samoa, Solomon Islands, Timor-Leste (East Timor), Tuvalu, Vanuatu, Yemen, and Sri Lanka or their successor political entities as TRADE Act of 2005 beneficiary countries eligible to receive duty-free treatment for certain articles that are the growth, product, or manufacture of such countries, if after receiving the advice of the International Trade Commission (ITC) the President determines that such articles are not import-sensitive in the context of imports from such countries.

Basis such designation upon eligibility requirements of the African Growth and Opportunity Act (AGOA) and theTrade Act of 1974.

Prescribes the rule of origin for such articles for the duty-free treatment.

Applies duty-free treatment, without any quantitative limitations, and under certain conditions, to textile and apparel articles assembled in one or more TRADE Act of 2005 beneficiary countries, apparel articles from regional fabric or yarns, and sweaters knit-to-shape from cashmere or merino wool that are imported directly into the U.S. customs territory from TRADE Act of 2005 beneficiary countries if the countries have satisfied AGOA protections against transshipment requirements.

Applies duty-free treatment for apparel articles assembled in one or more TRADE Act of 2005 beneficiary countries if their assembly meets specified U.S. origin requirements.

Establishes: (1) limitations on such preferential treatment; and (2) special rules for apparel articles wholly assembled in one or more TRADE Act of 2005 beneficiary countries or former beneficiary countries (or both) regardless of the country of origin of the yarn or fabric used to make such articles; and (3) applicable percentages of such benefits.

Applies the AGOA surge mechanism (requiring the Secretary of Commerce to monitor imports of apparel articles from regional fabric or yarns and to make certain determinations) with respect to the preferential treatment extended to TRADE Act of 2005 beneficiary countries.

Grants duty-free treatment to certain sweaters knit-to-shape from cashmere or merino wool and other specified apparel articles.