Globalization has made it evident that the traditional separation between trade and competition policies is not only artificial but in overt contradiction with international economy. This paper discuses the relationship between the agricultural sector and competition policy in a free trade context. It is argued that it is convenient to apply competition policy to this sector, as it ensures the best possible conditions for enhancing technological change processes that are vital for agricultural development. It also argues that a rigorous competition policy is essential, to take into account the particular market structure characteristics of the agricultural related sectors.