This report evaluates the U.S. and world sugar markets for 2000-2010 by using the Global Sugar Policy Simulation Model. This analysis is based on assumptions about general economic conditions, agricultural policies, population growth, weather conditions, and technological changes. Both the U.S. and world sugar economies are predicted to improve over the next ten years after the current over supply is reduced. World demand for sugar is expected to grow faster than world supply, resulting in gradually increasing Caribbean sugar prices from 8.51 cents/lb in 2000 to 12.67 cents/lb in 2010. The U.S. wholesale price of sugar is projected to increase from 22.5 cents/lb in 2000 to 26.6 cents/lb in 2010, if the United States maintains its sugar programs. World trade volumes of sugar are expected to expand slightly.