Chief negotiator with the EU David Frost.........>

UK: Chief negotiator with the EU David Frost releases statement following

conclusion of the latest UK-EU FTA talks, with very downbeat outlook.

- Says "It is unfortunately clear we will not reach in July the "early

understanding on the principles underlying any agreement"."

- "... considerable gaps remain in the most difficult areas, that is, the

so-called level playing field and on fisheries."

- "When the next round of negotiations begins there will be not much more than 4

months left until the end of the transition period. Although we will continue

energetically to seek and agreement with the EU, we must face the possibility

that one will not be reached, and we must therefore continue preparing for all

possible scenarios for the end of the transition period at the end of this

year."

- "Despite all the difficulties, on the basis of the work we have done in July,

my assessment is that agreement can still be reached in September".

- Another round of informal discussions confirmed for next week, being held in

London.