This publication looks at the importance of the EU sugar industry in the global sugar market. It analyses how sugar reforms adopted by the EU council in 2006 have led to market changes. The first part of this report looks at what might happen if complete policy reform and full trade liberalisation took place. This gives the reader insight into the impact that sugar support policies have had in making this industry one of the most heavily subsidised, protected and distorted agricultural commodities markets. The effect that sugar support policies in the EU and worldwide have made to production and trade developments in other countries are also highlighted. The second part of this report looks forward, to examine how the sugar market may evolve up to 2015 in light of the sugar policy changes which were introduced in 2006. Finally, an initial evaluation of the EU sugar policy reform is made in light of the OECD Ministerial principles for agricultural policy reform. DYK: The wages of sugar farmers in the EU are three times above the world average.