Nearly 200 years ago, in the cellars of London's oldest wine merchant, a plaque was fixed to the wall outside Berry Bros & Rudd on St James's Street. It marked the Embassy of the Republic of Texas — a diplomatic outpost that closed in 1845 when Texas joined the United States, leaving behind an unpaid rent bill. Now, two centuries later, the state has opened a dedicated new office just up the road, signalling its determination to deepen economic ties with the British capital.
Trade between Texas and the UK is already worth about $17bn a year, but the state wants more. Senator Tan Parker, Republican leader of the Texas State Senate, said: "One of the things that was very compelling to me is the opportunity to look at dual listings between the London Stock Exchange and the Texas Stock Exchange." He added that he hopes the move will create jobs and opportunities for businesses on both sides of the Atlantic.
“Texas opens a new trade office in London two centuries after its first embassy closed, aiming to boost ties worth $17bn a year.”
The ambition comes as Austin, the state's capital, raises the profile of its own stock exchange — dubbed "Y'all Street" — as a challenger to New York. Austin mayor Kirk Watson told BBC London: "Austin 25 years ago was becoming a big international city and we are doing a lot to mature our way into that international role. Austin has become a focal point in a global economy."
Watson stressed the importance of "subnational diplomacy" and "city-to-city relationships" amid what he called "confusion and chaos on the world scene." He said London is seen as a leader on the international business stage, and that the relationship works both ways: "I also think places like London get something out of these relationships because we talk about things like Austin energy — our municipally-owned utility — renewables, and climate." He also emphasised the need for cities to collaborate on addressing the growth of artificial intelligence and data centres, and how to implement them in dense urban settings.
The move may appear contrary to the recent exodus of firms from the London Stock Exchange, with well-known UK companies now selling their shares on foreign markets. Economist Alexander Harvey from Oxford Economics said the opening follows "a period of mixed economic fortunes for London." He noted: "While employment growth in the capital has been stronger than in the rest of the UK, productivity has broadly stagnated since the global financial crisis."
Yet Texas appears undeterred, planting its flag once again in the heart of London — this time not as a fledgling republic but as a state with a $2tn economy, aiming to forge bonds that stretch beyond mere trade.