Sir Ian has led calls for the UK to ease regulations on growing gene-edited crops, a huge boost for British farmers.
However, this practice is banned by the EU and Northern Ireland cannot carry out it or import such agricultural products from the UK.
“This will be a powerful tool in the hands of civil servants and will create a chilling effect where any deviation will be seen as impossible,” said a Eurosceptic official.
DUP leader Sir Geoffrey Donaldson has been in talks with the government for months over a deal to return to power-sharing at Stormont.
Ministers proposed legislation to guarantee Northern Ireland’s status in the UK, the creation of a new East-West Council on Internal Trade Relations and £3.3 billion in funding.
It was expected that he would back the deal at last week’s party meeting, but the proposal faced stiff resistance from some senior DUP figures.
He told the House of Commons on Wednesday that he had been threatened for trying to find an agreement on the Irish Sea border issue, but vowed he would not be intimidated.
The government has been criticized for “failing” to take advantage of Brexit by secretly increasing the influence of EU law on the UK economy.
The criticism coincided with an announcement by the Commerce Department that it was expanding its use of European safety marks.
“I heard about business.”
Kevin Hollinrake, Minister of Economy, Trade and Industry, said more products will now receive the EU’s CE stamp, which indicates products are manufactured according to EU standards.
The move means British manufacturers of electronics such as vacuum cleaners, heat pumps and refrigerators will be encouraged to continue to follow Brussels rules.
In a written statement, Mr Hollinrake said he had “listened to the voices of businesses” both in the UK and on the continent who wanted to continue following EU standards.
But Eurosceptic MPs fear the latest cuts will effectively dash any hopes of Britain leaving the EU and taking advantage of its freedom to leave the bloc.
David Jones, vice-chairman of the European Research Group, said ministers should “encourage and accelerate the development of British standards and not continue to comply with EU regulations”.
He added: “The UK is pursuing a global trading posture and EU standards are becoming increasingly irrelevant. Holding onto the CE mark is extremely short-sighted.”
Sir Bill Cash, a leading Conservative Party Eurosceptic, warned that the government was “wasting an opportunity” to cut through red tape in Brussels.
In a letter to Business Secretary Kemi Badenoch, he said there was “little hard evidence” that ministers had plans to pursue a free exit from the EU.
Asked about Mr Sunak’s offer, a British government spokesperson said: “We do not comment on speculation.
“We believe there is a strong foundation for restoring power sharing and remain hopeful that this issue will be fixed soon.”