The new proposal, in which neither side levies tariffs on the other’s goods, is contained in a paper produced by the pro-Brexit Economists for Free Trade (EFT).
The group argues that a World Trade Deal under World Trade Organisation rules is the UK’s best bet.
The report, which has been sent to the Prime Minister, argues that such a deal would also provide a major boost to the UK economy.
The Economists for Free Trade report criticises ministers for being “slow to make preparations for no deal” but stresses there is “still time” to make it work.
“The solution is a temporary zero tariff period during which neither side levies tariffs on the other,” says the report.
“If the EU were to refuse such an agreement it would not affect our border procedures and they would come off the worse because its exports to us heavily outweigh our exports to them.”
Urging the Government to “pursue this option with urgency”, it predicts that the country would be better off by £140billion.