BRUSSELS (Reuters) - Britain will develop its own system for regulating state aid and controlling subsidies after its post-Brexit transition period is over, London's negotiator for the long-term relationship with the European Union said on Monday.
"Obviously we will develop our own state aid system, our own anti-subsidy regime once the transition is over," David Frost told an audience after delivering a lecture at a Brussels university.
The EU wants Britain to accepts its rules and regulations on state aid as part of a tariff- and quota-free trade deal to guard against unfair competition with a large competitor on its doorstep.
Frost said that the UK was not prepared to compromise on the fundamental parts of its negotiating position with the EU, and was "not frightened" by suggestions there would be trade frictions and barriers as a result of the deal ultimately agreed.
He added that it was perfectly possible to be both an economic competitor and political partner with the EU in the future.
He said the UK was "not asking for anything special", just a normal trade agreement that the EU has with other countries around the world.