Adanac, a small country, is considering whether to join the regional trade agreement known as RTAR–U.S. Currently, it can import tires from countries outside the regional agreement at the price of $20 each or from those inside the pact at $40 each. In addition, Adanac imposes a 50% tariff on all imported tires. Predict whether Adanac’s decision to join RTAR–U.S. will lead to trade diversion or trade creation. Explain.