5 stocks that might get impacted by Britain-NZ free trade deal

Highlights 

  • The UK has signed a free trade deal with New Zealand.
  • The deal will potentially increase exports by removing tariffs and make it easier for UK professionals to work in New Zealand.
  • UK farmers could be hurt due to the deal as per Labour and the National Farmers Union (NFU).

The UK has signed a free trade deal with New Zealand which will be advantageous for its businesses and consumers. According to PM Boris Johnson, the deal will help exporters reduce their costs and will open up the job market of New Zealand for UK professionals.

Tariffs will be reduced, which in turn will lead to an improvement in trade of goods as well as services and bring London one step closer to become a part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The UK already has trade deals with several members of the trade bloc but getting membership will enhance its accessibility of services and digital trade.

Overall, New Zealand’s share in UK’s total trade stands at 0.2%, which is quite low. The deal could help in increasing UK’s exports by removing tariffs on goods, such as clothes, ships, and bulldozers.

However, it could hurt UK farmers and lower food standards as per Labour and the National Farmers Union (NFU). The free trade agreement is mutually beneficial for both countries as the export of wine, honey and kiwi fruits from New Zealand will also rise as tariffs gets removed.

RELATED READ: Did UK ‘manipulate’ climate pledge for Australian trade deal?

Let’s take a look at some of the stocks which may be impacted positively by the new trade deal.

Burberry Group plc (LON: BRBY)

Burberry Group plc is a global fashion brand and luxury goods maker with current market capitalisation of £7,582.38 million, and it has given a return of 22.24% in 1 year. The previous close price of Burberry Group plc’s shares was GBX 1,872.50 as of 20 October 2021.

Marks and Spencer Group Plc (LON: MKS)

Marks and Spencer Group Plc specialises in selling clothing, home products and food products at a global scale. Its current market capitalisation stands at £3,550.52 million and it has given a return of 95.12% in 1 year. The previous close price of Marks and Spencer Group Plc’s shares was GBX 181.30 as of 20 October 2021.

Boohoo Group PLC (LON: BOO)

Boohoo Group PLC is a UK-based leading online fashion retailer which focuses on clothing for teens and young adults. Its current market capitalisation stands at £2,520.91 million and it has given a negative return of 21.79% in 1 year. The previous close price of Boohoo Group PLC’s shares was GBX 198.90 as of 20 October 2021.

Clarkson PLC (LON: CKN)

Clarkson PLC, commonly called as Clarksons, provides integrated shipping services internationally. The FTSE250-listed company has given a return of 65.30% in 1 year. Its current market cap stands at £1,144.38 million. The previous close price of Clarkson PLC’s shares was GBX 3,760.00 as of 20 October 2021.

Global Ports Holding PLC (LON: GPH)

Global Ports Holding PLC is a cruise port operator with services in the Atlantic, Caribbean, Mediterranean, and Asia-Pacific regions. Its current market cap stands at £81.20 million, and it has given a return of 105.45% in 1 year. The previous close price of Global Ports Holding PLC’s shares was GBX 129.25 as of 20 October 2021.

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