The long-run competitiveness of the U.S. cotton industry in the world market is determined largely by the industry's production costs relative to other countries. Estimated costs of producing cotton in the U.S. and in nine competing cotton exporting, countries over the period 1970-1985 are presented. Production costs in the major exporting countries are adjusted for differences in input subsidies between countries and for fluctuations in exchange rates. Implications for the U.S. competitive position are examined.