The Turkish Embassy in Washington, D.C. has said that Turkey's expectations in regards to preserving its position in the U.S. Generalized System of Preferences (GSP), continues.

"In order to reach the $75 billion trade volume target, set by President Recep Tayyip Erdoğan and the U.S. President Donald Trump, we have conveyed our expectations that the practices that might hinder trade between the two countries should be abandoned," a statement from the Embassy read. "In this context, we retain our expectation that the decision to remove our country from the GSP Program should not be put into practice."

In early March, Trump decided to remove Turkey from the status of "developing countries" under the GSP, which provided a tax advantage in trade with the U.S.

In response, Ankara said that the GSP decision of the U.S. did not coincide with the $75 billion trade volume target. The bilateral trade volume was at $21 billion last year.

Trade Minister Ruhsar Pekcan had announced that they would form a joint working group with the U.S. Department of Commerce to increase bilateral trade volume to $75 billion.

Turkey is one of 120 countries that participate in the GSP, the oldest and largest U.S. trade preference program since 1975. Under the GSP program, certain products can enter the U.S. duty-free if beneficiary developing countries meet the eligibility criteria established by Congress. Around 3,193 products enter the American market without customs.

Last year, Turkey exported $1.1 billion worth of vehicles and auto parts under the GSP program while total exports hit nearly $9 billion. Without the GSP treatment, these autos and parts will be subject to a 2.5 percent customs tax. Fiat's Doblo model and Toyota's C-HR model are manufactured in Turkey and exported to the U.S.

The U.S.' total GSP imports recorded at $20.9 billion. The leading GSP import categories were vehicles and vehicle parts, jewelry and precious metals, and stone articles, the website said.

The "graduation" of Turkey from the program – as the office of the U.S. Trade Representative put it – means that Turkish exporters will have to pay an extra $63 million in import tariffs.