Final answer:
The statement is not fully accurate; while whaling was significant, the trade increase between Hawaii and other countries largely centered around the sugar industry, not sandalwood production.
Step-by-step explanation:
The production of sandalwood does not seem to be a significant factor in the increased trade between Hawaii and other countries, at least not in the context of the information provided.
The main economic activity mentioned that increased Hawaii's trade was the sugar industry, which became lucrative due to reciprocal trade agreements with the United States, allowing Hawaiian sugar to be exported tariff-free. After political upheavals and the eventual annexation of Hawaii by the United States in 1898, American sugar planters were at the heart of the Hawaiian economy.
While whaling was indeed significant, particularly in the context of Hawaii being a strategic port, it is not directly tied to sandalwood in increasing trade. Therefore, the statement mentioning both 'sandalwood and whaling' increasing trade between Hawaii and other countries does not fully match the historical context available.