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Highlights
- The Covid-19 pandemic and Brexit have together impacted the UK’s exports heavily.
- The potential India-UK trade deal could prove to be even bigger than the UK’s obsolete deal with the US.
- The UK aims to become the first European country to be a part of the CPTPP.
The Covid-19 pandemic and Brexit have together impacted the UK’s exports heavily. Nevertheless, the UK has been going for Free Trade Agreements (FTAs) with different countries to raise its exports. A recent report of the Resolution Foundation stated that the UK could gain tremendously by closely tying up with the Indo-Pacific region after its departure from the European Union (EU).
The potential India-UK trade deal could prove to be bigger than the UK’s obsolete deal with the US. As per the Nuffield Foundation-funded report for The Economy2030 Inquiry with the London Stock Exchange Group, the UK is increasing its focus on the Asian region lately with an aim to become the first European country to be a part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Approximately 8% of the UK’s current trade could be covered under this agreement.
The UK has FTAs with 95% of CPTPP members. However, the UK-India trade deal can have quite a huge impact on UK’s overall trade, as India is growing faster as compared to other CPTPP members. UK’s trade could boost up to £28 billion annually by 2035 as its exports to India would be almost doubled.
Let’s take a look at 5 FTSE stocks that can get affected by the UK’s FTAs.
RELATED READ: 5 stocks affected as Brexit and Omicron hit UK exports
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GlaxoSmithKline plc (LON: GSK)
UK-based healthcare firm GlaxoSmithKline plc sells pharma products globally. The market cap of the FTSE100-listed company stood at £81,233.53 million and it has provided a return of 15.75% to its shareholders in the last one year as of 26 January 2022. GlaxoSmithKline plc’s shares closed at GBX 1,631.80, up by 1.08%, as of 26 January 2022.
Mondi Plc (LON: MNDI)
UK-based manufacturing business Mondi Plc provides packaging and paper products internationally. The market cap of the FTSE100-listed company stood at £8,671.99 million and it has provided a return of 0.25% to its shareholders in the last one year as of 26 January 2022. Mondi Plc’s shares closed at GBX 1,814.50, up by 1.60%, as of 26 January 2022.
Rio Tinto plc (LON: RIO)
Anglo-Australian business Rio Tinto plc is among the leading metals and mining firms across the world. The market cap of the FTSE100-listed company stood at £66,288.75 million and it has provided a return of -8.04% to its shareholders in the last one year as of 26 January 2022. Rio Tinto plc’s shares closed at GBX 5,434.00, up by 2.32%, as of 26 January 2022.
RELATED READ: Will Brexit continue to bother UK businesses in 2022?
Johnson Matthey PLC (LON: JMAT)
London-headquartered specialty chemicals business Johnson Matthey PLC offers chemicals and sustainable technologies to global markets. The market cap of the FTSE250-listed company stood at £3,521.38 million and it has provided a return of -36.45% to its shareholders in the last one year as of 26 January 2022. Johnson Matthey PLC’s shares closed at GBX 1,908.50, up by 3.00%, as of 26 January 2022.
Smith & Nephew plc (LON: SN)
UK-based manufacturing firm Smith & Nephew plc supplies medical equipment worldwide. The market cap of the FTSE100-listed company stood at £10,843.25 million and it has provided a return of -23.67% to its shareholders in the last one year as of 26 January 2022. Smith & Nephew plc’s shares closed at GBX 1,248.00, up by 1.26%, as of 26 January 2022.
