The agricultural sector of the Republic of Croatia is one of the most important sectors, contributing to the realization of approximately 10% of GDP. However, despite the importance of this sector for the Croatian economy, in recent years the public has increasingly emphasized the fact that this is a sector that operates with major problems, and which largely affect productivity and competitiveness at the international level. Although in recent years a problem has emerged in the agricultural sector and certain measures have been taken to increase investment in the agricultural sector and in rural areas in general, it can be seen that there has been a marked negative impact on agriculture in recent decades. emigration of young people from rural areas, the consequences of which will be expressed in the coming decades. The subject of this paper is the competitiveness of the agricultural sector of the Republic of Croatia in relation to the agricultural sector of the EU. One of the basic goals of the paper is to determine the differences when it comes to the agricultural sectors of the Republic of Croatia and the EU and based on the established characteristics of the EU agricultural sector to create certain recommendations for its development in the Republic of Croatia. It is possible to conclude that in order to improve the productivity and competitiveness of agriculture in the Republic of Croatia, it is necessary to introduce a number of changes, which should be adapted to the characteristics of each local area. That is, it is necessary to specialize in production, encourage the circular economy, organic agriculture and, above all, innovation in production.