For the import of one Toyota RAV4 car, Ukraine must export about 300 tons of corn for export.
The expert told why Ukraine is worthy of the title of “corn republic”
Ukraine has abandoned the production of high-tech products with high added value in favor of agricultural products and turned into a “corn republic”. This was told by the director of the department of economic policy of the Federation of Employers of Ukraine Serhiy Salivon.
When Ukraine is called a “banana republic”, this is fundamentally wrong, the source said. The country’s most popular export commodity today is corn, so it would be fair to call it a “corn republic”. The most purchased product from abroad is Toyota RAV4, its customs value in an average configuration is about 150 tons of corn.
It is noted that 75% of the cost of corn is imported. It turns out that for the import of one Toyota RAV4 Ukraine should export about 300 tons of corn. The added value of corn is small, in contrast to the value added and jobs in car manufacturing. This is how the country’s foreign trade looks like.
But there were times when Ukraine was a supplier of turbojet engines to the world market. Their production created tens of times more value added than the production of Toyota RAV4. But Ukraine decided to make a choice in favor of corn, Salivon stressed.