The UK’s chief Brexit negotiator has said the government is not “scared” of walking away from talks without a trade deal ready to come into force in 2021.
David Frost told the Mail on Sunday the UK would leave the transition arrangement – which sees it follow many EU rules – “come what may” in December.
In contrast, he said Theresa May’s team had “blinked and had its bluff called”.
EU negotiator Michel Barnier has said he is “worried and disappointed” about a lack of concessions from the UK.
He was speaking after informal talks between the pair failed to find a breakthrough.
An eighth round of formal negotiations begins on Tuesday.
Both sides want a deal agreed next month in order to have it signed off by politicians on both sides of the Channel by the end of the transition period on 31 December.
Differences remain on issues such as fishing and the level of taxpayer support the UK will be able to provide for businesses, also referred to as state aid rules.
Foreign Secretary Dominic Raab said the week ahead was “a wake up call for the EU” adding “the EU’s best moment to strike a deal is now.”
Speaking to the BBC’s Andrew Marr programme, he said the questions of fishing and state aid were “the only two points holding us back”.
On fishing, he accused the EU of wanting to keep UK access to its fishing waters “permanently low”. He also said providing state aid is “an absolute critical element of policy making” which UK political representatives should have control over.
The EU has said it wants full access for its boats to fish in UK waters in return for giving the UK fishing industry full access to EU markets.
On state aid, the EU has expressed concern that it could give business in the UK an unfair advantage over their European competitors and Mr Barnier has previously said the EU will require “robust” guarantees in this area if it is to agree a deal.
Lord Frost told the newspaper: “A lot of what we are trying to do this year is to get them to realise that we mean what we say and they should take our position seriously.”