Trevor Lockhart, group chief executive at Fane Valley Co-op, an agri-food business based in Moira, Northern Ireland, said the interests of businesses in the region have been sacrificed.
Speaking on BBC Radio 4's Today programme, he said: "It's ultimately a balance between what works politically and what works economically.
"The UK backstop, for us, delivered economically but clearly didn't work politically, and in the pursuit of getting a political solution the interests of businesses in Northern Ireland to some extent have now been sacrificed.
"But it ultimately is important that we get a deal, because the threat of a no-deal to Northern Ireland businesses is the worst risk of all.
"So we hope that all parties will constructively engage around the proposals now presented.
"But as they currently stand, the Government proposals don't represent a final destination for Northern Ireland business."
