In the dimly lit cellars of London’s oldest wine merchant, Berry Bros & Rudd, a plaque on the wall marks a forgotten chapter: this was once the Embassy of the Republic of Texas. Nearly 200 years ago, diplomats from the Lone Star State operated from St James’s Street, until Texas joined the US in 1845 and the legation shut – leaving behind an unpaid rent bill.
Now, two centuries later, Texas has opened a dedicated new office just up the road, aiming to “grow international trade and tourism and support activities that are key to the economy”. The state’s economic ties with the UK are already worth about $17bn a year, and it wants more.
“Texas opens a London trade office nearly 200 years after its embassy closed, aiming to boost $17bn trade.”
Senator Tan Parker, Republican leader of the Texas State Senate, sees an opportunity in dual listings between the London Stock Exchange and the upstart Texas Stock Exchange – dubbed “Y’all Street” – as a challenger to New York. “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 said, adding that he hopes it will create jobs and opportunities for both Texas firms eyeing the UK market and British companies wanting to enter Texas.
Austin’s mayor, Kirk Watson, told BBC London that 25 years ago the city was “becoming a big international city” and is now “doing a lot to mature our way into that international role”. He called Austin “a focal point in a global economy”, adding: “Looking to places like London will help us with that.” But he stressed the relationship is reciprocal: “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 also emphasised the importance of cities working together on artificial intelligence and data centres in dense urban settings, and championed “subnational diplomacy” and “city-to-city relationships” amid what he called “confusion and chaos on the world scene”.
The move to strengthen ties comes at a time when some well-known UK companies have left the London Stock Exchange for foreign markets. Economist Alexander Harvey from Oxford Economics noted that while employment growth in London has been stronger than in the rest of the UK, “productivity has broadly stagnated since the global financial crisis”. The new Texas office, a stone’s throw from where its diplomats once wined and dined, may be a bet that transatlantic business can help reverse that trend.