The Leave Means Leave co-chair claimed the compromises on the Irish border and the transition period were “deliberately” added by civil servants and could result in Britain being trapped in a “permanent” transition phase.
European Commission President Jean-Claude Juncker agreed on Friday enough progress has been made on key Brexit issues in order to move on to trade talks.
But Theresa May was forced to make concessions in order to seal a deal with the EU and it has left some Brexit voters furious.
Speaking on BBC Radio 4, Mr Tice said: “There are two huge bear traps in this agreement that I think civil servants have deliberately put in there in cahoots with Brussels bureaucrats.”
Clause 49 of the Brexit report states Britain must maintain full alignment with the European Union until there is an agreed solution on the Irish border. Full alignment would mean Britain would remain in the single market and customs union until the issue is resolved.
Mr Tice said Clause 49 is a “massive bear trap”. He said: “If you never get that agreed solution then we can never deregulate, we can never sign free trade deals. We can never change our immigration policy.
“Therefore, de facto, we’ve not left the European Union.”
The Brexiteer said the second “bear trap” is the timeline on Brexit. He said: “We’ve got to sign this transitional deal in quarter one not as early as possible but in quarter one.”
Mr Tice insisted that Britain must not pay “any money at all” unless a free trade deal is signed.
The businessman said there must be compromises made but the Government should not accept something that will damage a deal.
He said: “As this agreement stands, we could end up being in a permanent transition forever, which people like the CBI and the multi-nationals and Brussels would love.
“But that would not be an acceptable deal for the British people.”
Former UKIP leader Nigel Farage called the agreement a “humiliation” and hit out at those who called it a “victory”.
He said: “It’s a victory if you think paying away a gargantuan sum of money is a good thing, if you think giving foreign courts jurisdiction over this country for nearly up to a decade to come is a good thing.”
December 9th, 2017: Express