This report evaluates the U.S. and world sugar markets for 2001-2011 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 10 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 7.81 cents/lb in 2001 to 12.05 cents/lb in 2011. The U.S. wholesale price of sugar is projected to increase from 21.7 cents/lb in 2001 to 25.2 cents/lb in 2011, if the United States maintains its sugar programs. World trade volumes of sugar are expected to expand slightly.