The objective of this study is to analyze major issues the U.S. sugar industry is facing or will face in the near future and the impacts of alternative trade liberalization policies in the United States and the European Union (EU) on the U.S. sugar industry. Special attention is given to regional competitiveness in sugar production in the United States. A global sugar policy simulation model was used for this study. This study indicates that most sugar producing regions may be able to survive at current costs and asset values if both the United States and the EU liberalize their sugar trade, while sugar subsidies remain in other countries. However, if only the United States eliminates its sugar programs, all U.S. sugar producing regions would be threatened.