The Cabinet minister said the UK was happy to sign up to the terms on state aid as ratified in the EU’s deal with Canada but would not go further than that.
And he accused Brussels of “double standards” in demanding more from Britain than it had in past free trade deals.
He said: “We’ve actually got the issues boiled down to two outstanding bones of contention.
“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.
“It is up to the EU to decide whether they want to reciprocate.”
Mr Raab said the UK was being asked to be treated fairly in the final stages of trade negotiations with the EU.
He told Sky News’ Sophy Ridge On Sunday programme: “I think it is there for the taking.
“This week the negotiations are really important and all the UK is asking for is to be treated like any other country in free trade negotiations.
“No other country would accept being bound by or controlled by the EU’s rules or indeed in their relations with any other country, and indeed the EU wouldn’t accept it in relation to us – I think that’s just a straightforward point of principle.”
It follows an interview with the UK’s negotiator Lord Frost in which he said the government was preparing to leave without a deal.
Leader of the Liberal Democrats Sir Ed Davey accused the government of being “reckless and risky” in its approach to trade negotiations with the European Union.
Sir Ed told Sky News’ Sophy Ridge On Sunday programme: “I do feel the Government is being very reckless and risky.
“We are in a recession now. It wasn’t foreseen when Brexit was first talked of and during the referendum and during the last election.
“This recession due to Covid, some people say, may be the worst and the deepest recession for 300 years and, in that context, the idea of a no-deal Brexit on top of the Covid recession, I think, would be a disaster for people’s jobs, for livelihoods, for businesses up and down the country.
“I thought it was very noticeable last week when businesses were saying the Government hasn’t prepared the border properly, whether it is a deal or no-deal.
“They are not ready. What has this Government being doing?”