In a statement released today, Lord Frost said important differences remain between the UK and the EU.
He said: “The talks of the week have been conducted in a constructive spirit. While there is some overlap between our positions on a subset of issues, the gaps between us remain substantial.
“As we have noted previously, the EU’s proposals represent a welcome step forward but do not liberalize the movement of goods between Britain and Northern Ireland to the extent necessary for a lasting solution.
“They are also not making the necessary changes in other areas, such as subsidy policy, VAT and protocol governance, including the role of the Court of Justice.”
Lord Frost also warned that if France followed through on threats to cut off energy supplies, it would violate the trade and cooperation agreement.
He added: “Lord Frost also conveyed to the Vice President our concerns over unwarranted measures announced by France earlier this week to disrupt UK fisheries and wider trade, threaten energy supplies and block prosecution. cooperation between the UK and the EU, for example on the Horizon research program.
“Lord Frost has made it clear that if these actions are implemented as planned on November 2, they would put the European Union in violation of the Trade and Cooperation Agreement (ACT).
“The government is therefore considering the possibility, in these circumstances, of initiating a dispute settlement procedure under the ATT, and other practical responses, including the implementation of rigorous enforcement processes and controls on EU fishing activity in UK territorial waters, under the ATT. “