FOREIGN Secretary Dominic Raab believes the UK is nearing a trade deal with Brussels.

Raab said that Brexit negotiations with the European Union have been “boiled down to two outstanding bones of contention” – control of UK fishing waters and taxpayer support for businesses – and urged the EU to come to an agreement.

But, yesterday Lord David Frost said the Government was not “scared” of walking away from the talks without a deal in a Mail on Sunday interview – this sentiment was echoed by Raab.

Another key round of negotiations will begin this week between Frost and the EU’s chief negotiator, Michel Barnier.

Raab, speaking to Sky News’s Sophy Ridge On Sunday programme, said the UK could not accept being controlled by the bloc’s state aid rules after Brexit, and accused the EU of “double standards” in its attempt to have Britain agree to terms beyond those in free trade agreements it has ratified in the past.

“We’ve actually got the issues boiled down to two outstanding bones of contention,” he said.

“There is a good deal there for the EU; we’d love to do that free trade agreement – and if not, we’ll fall back on Australian-style rules.

“I think this week is an important moment for the EU to really effectively recognise that those two point of principles are not something we can just haggle away – they are the very reasons we are leaving the EU, but we want a positive relationship and the arm of friendship and goodwill is extended.”

Frost had a similar message as he and Barnier prepare to enter the final phase of their negotiations on trade when formal discussions resume tomorrow.

He said the UK is preparing to leave after the transition period “come what may”, even if that means exiting with no-deal – which officials have dubbed a so-called “Australian-style” arrangement.