Mah said he would not rule out the possibility of Malaysia halting the import of goods from the EU if the ban goes through.

“If the EU acts unfairly against our palm oil, it will jeopardise the livelihood of our 650,000 oil palm smallholders.

“We do not want any conflict but if the EU presses us, I think nobody will benefit. There is bound to be retaliation,” he told Bernama and the New Straits Times here today.

In January, the European Parliament approved a draft proposal to ban palm oil in biofuel beginning in 2021, a decision that could affect the livelihood of millions of oil palm growers in Malaysia, Indonesia and Thailand.

Following the move, Mah travelled to several key European countries in February, including France, the UK, Belgium, Spain and Germany, to seek support and to campaign against the ban.

“Most of them are receptive, and I am confident these countries will not take action that discriminates against palm oil.

“If they stop buying our palm oil, we will stop buying their products,” he said, adding that the government had also raised the issue with the World Trade Organisation.

According to Mah, palm oil had become a victim of its own success.

“They ganged up against palm oil because palm oil is increasing its domination in the world market. In the 90s, palm oil only accounted for 10% of the global vegetable oil market.

“Now it dominates 60% and if the trend continues, palm oil will go on (to dominate) 80% to 90% (of the world market).”

He said the anti-palm oil sentiment from developed countries was also a protectionist policy used to protect their local oils such as grape seed, soybean and olive oil.

Malaysia is the world’s second-largest palm oil producer after Indonesia, while Thailand is ranked third.