The plan to lodge an application with the WTO was mooted two weeks ago as trade tensions between Australia and China deepened and the government has now formalised its plan.

Industry has been split over the best course of action regarding the dumping tariffs, some advocating WTO action, some suggesting the long lag time to get a decision meant it was not worth the effort.

Federal trade minister Simon Birmingham said the government had made the decision to go to the WTO after extensive consultation with the grains industry.

"Whilst Australia respects China's right, as with any nation, to undertake domestic investigations into anti-dumping matters, we do not agree with China's decision to impose anti-dumping and countervailing duties on Australian barley," Mr Birmingham said.

"Australia's decision to take this step is consistent with our previous use of WTO processes," he said.

Grain Growers is one organisation backing the move, even though a resolution is not likely to be swift, saying the $2.5 billion market was too important to ignore.

"We recognise that the WTO process will be time-consuming and complex," said Grain Growers chairman Brett Hosking.

He encouraged the government to concurrently work with industry to develop new markets.

"We also see this as an opportunity for the government to work with the grains industry to look at alternative markets for barley," Mr Hosking said.

Mr Birmingham said the government had been unable to establish a dialogue with China on the matter.

"We have continued to raise our concerns with China on numerous occasions both bilaterally and through the relevant WTO committees," he said.

"We remain disappointed that China has not engaged with Australia to address these concerns and now believe that calling in the independent umpire is the most appropriate course of action to resolve this dispute."

He expressed hope the matter could be resolved prior to going to the WTO dispute resolution process, which he acknowledged was time consuming.

"The Australian government will engage in formal WTO consultations with China with a view to resolving the dispute before it proceeds to adjudication before a panel," he said.

"We stand ready to work with China at any stage to resolve this issue in a cooperative manner, as we have previously done with other nations."

He said the WTO would allow a clear analysis of China's case against Australia.

"WTO processes are not perfect and take longer than would be ideal," he said.

"However, they give independent and transparent scrutiny to issues, with valuable opportunities for the participation of other nations or third parties."

Agriculture minister David Littleproud said Australian barley growers deserved to have their case adjudicated by the independent umpire.

"Australia has always supported a rules based trading system, we will always treat our trading partners fairly but we will also stand up for the rights and interests of Australian exporters," Mr Littleproud said.

"We have previously taken action against Canada with respect to the treatment of our wine and achieved a positive outcome and we are currently involved in action against India on sugar," he said.

"I am confident that we will be able to deliver a good outcome for our grains industry."