Winemakers were hit the hardest when China put tariffs ranging from 107 to 200 per cent on Australian wine, virtually wiping out exports.

Now the Australian government has finished its initial round of consultation with the wine industry, and will take the next few weeks to decide whether to go to the WTO, reports The Sydney Morning Herald.

Senior government sources confirmed to the newspaper it was highly likely Australia would announce a decision to take China to the WTO over the wine tariffs in the coming weeks.

Trade Minister Dan Tehan also announced on Friday afternoon that the Australian government is taking the next step in its first WTO claim against Beijing for its tariffs on barley, formally asking the world body to establish a dispute settlement panel to address the matter, the Australian newspaper reported.

Tehan said Australia remained open to further discussions with China with a view to resolving the dispute over barley, but would “continue to vigorously defend the interests of Australian barley producers” at the WTO.

“The establishment of the panel is the next step in the WTO’s dispute resolution process. The next phase of the process is the appointment of individuals to the panel to adjudicate the dispute,” Tehan was quoted as saying by The Sydney Morning Herald.

Last year, Australia had for the first time announced it was launching WTO action against China.