In the dimly lit cellars of London's oldest wine merchant, Texas is not the first thing that springs to mind. But nearly 200 years ago, Berry Bros & Rudd was home to the Embassy of the Republic of Texas. A plaque on the wall outside the St James's Street store still marks the "Texan Legation." After Texas joined the US in 1845, the embassy closed and the diplomats headed home – leaving behind an unpaid rent bill.
Now, two centuries later, the State of Texas has opened a dedicated new office just up the road to "grow international trade and tourism and support activities that are key to the economy." Trade between Texas and the UK is already worth about $17bn a year, and the state wants even closer business ties.
“Texas has opened a new trade office in London, reviving diplomatic ties nearly 200 years after its embassy closed.”
"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," said Senator Tan Parker of Texas North and Republican leader of the Texas State Senate. He hopes it will create jobs and opportunities for both Texas companies aiming to enter the UK market and British companies wanting to enter the Texas market.
The move comes as the state's capital Austin raises the profile of its own stock exchange – known as "Y'all Street" – as a challenger to New York. Austin's 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." He added: "Looking to places like London will help us with that. 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."
Watson stressed the importance of subnational diplomacy and "city-to-city relationships" amid "confusion and chaos on the world scene." But while London is seen as a "leader" on the international business stage, this move may seem contrary to the recent exodus of firms from the London Stock Exchange, with some well-known UK companies now selling shares on foreign markets.
Economist Alexander Harvey from Oxford Economics said the move follows "a period of mixed economic fortunes for London." "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," he said.