<article><p class="lead">Australia is considering taking China to the World Trade Organisation (WTO) over import tariffs on barley, as relations between the two countries continue to worsen.</p><p>Canberra is on the cusp of applying to the WTO to investigate <a href="https://direct.argusmedia.com/newsandanalysis/article/2106516">the import tariffs</a> of more than 80pc that Beijing imposed on Australian barley earlier this year. Those tariffs could cost the country's grain sector and related economies at least A$500mn/yr ($370mn/yr), Australia's grain trade industry estimated at the time.</p><p>Concern is growing that the rising tensions will lead to <a href="https://direct.argusmedia.com/newsandanalysis/article/2107785">further trade disruptions</a>, adding to existing import constraints on Australian coal, barley, copper, wine, beef, lobster and some wood products into China. </p><p>China is continuing to <a href="https://direct.argusmedia.com/newsandanalysis/article/2163083">stop Australian coal</a> from entering the country, causing some firms to plan for extended mine closures in Queensland and New South Wales.</p><p>Canberra is particularly concerned about what it sees as the unpredictability of Beijing's reaction, with top officials refusing to meet with their Australian counterparts for most of this year. And relations between the two countries hit a new low today after Canberra took offence at tweet by a Chinese government official showing a fake picture of an Australian soldier murdering an Afghan child. </p><p>Australian prime minister Scott Morrison said today that the Chinese government should be ashamed of the "repugnant" tweet by China's foreign ministry spokesman Zhao Lijian. An Australian war crimes inquiry found last week that Australian special forces committed at least 39 unlawful killings during the war in Afghanistan. </p><p>Tensions between Beijing and Canberra have been rocky for a few years, but started deteriorating sharply following Australia's decision early last year to ban Chinese telecommunications firm Huawei from its 5G network and its call for an investigation into the source of the Covid-19 pandemic earlier this year.</p><p class="bylines">By Jo Clarke</p></article>
