He said palm oil commanded about 60% of the global vegetable oils market share, up from about 10% in the 60s and 70s.

“This is all because of the government’s efforts,” he told the Dewan Rakyat here today.

Mah said the EU’s move against palm oil, including a ban on its use in motor fuels starting 2021, was due to the bloc’s concerns that the commodity would dominate over 80% of the market share within the next decade.

However, he added, proactive action had been taken, including bilateral talks with the ambassadors and head of the EU delegation to Malaysia, and through trade missions to the bloc.

The minister said he had also been engaging with his counterparts in Thailand and Indonesia to join forces in combating the ban.

“We will ensure that the issue surrounding palm oil is resolved before the Asean-EU Free Trade Agreement is concluded,” he added.

Mah said the government would continue to fight for the livelihoods of more than 650,000 smallholders in rural areas who would be affected by any ban on palm oil.

Malaysia’s palm oil exports last year hit RM77.8 billion, accounting for 8.3% of total export volume. The export of palm oil and palm oil products to the EU stood at RM11.03 billion in 2016.