The NFU has said a temporary customs arrangement with the EU, called the 'backstop', is "sensible" to ensure there is no disruption in critical agri-food trade.
The 'backstop' proposal would see the UK match EU trade tariffs temporarily.
It would be implemented if a permanent customs deal is not in place at the end of the 21-month Brexit transition period, with the aim of avoiding a hard Irish border.
The UK will also be able to negotiate, sign and ratify free trade agreements (FTAs) with rest of world partners and implement those elements that do not affect the functioning of the temporary customs arrangement.
Nick von Westenholz, Director of EU Exit and International Trade said a trade deal between the EU and UK that supports the current high levels of trade in agri-food products should be a priority.
"To this end we believe it makes sense for the UK to be part of a customs union with the EU during the transition," Mr von Westenholz said.
"After that time the priority should remain an arrangement that allows tariff free trade and avoidance of non-tariff barriers between the two blocs, whether through continued membership of a customs union or through other customs arrangements."
Food disruption
He said the NFU believes agreeing a “backstop” early in the negotiating process is sensible to ensure that the critical EU and UK trade in perishable agri-food products is not disrupted.
"A solution on customs is only one part of the commitment required to free and frictionless trade, an agreement on the approach on regulatory standards will also be required,” Mr von Westenholz added.
"The NFU believes that in the future UK regulations do not diverge from those of our key trading partners in a way that makes frictionless trade impossible or reduces the competitiveness of the UK food supply sector."
The NFU has encouraged industry and government to work together to identify those areas of regulation that can be reformed without jeopardising objectives on trade and that respect British high standards.
