palpable damage to domestic industry the opening of4. Should the Parties be unable in the course of consultations in accordance with the provisions described in Article 17 with a view to reaching agreement on :consultations to reach a satisfactory solution within theperiod specified in Article 17 , the Community shall have the — the suspension , wholly or in part , of the provisions ofright to introduce a definitive quantitative limit at an annual Article 7 , orlevel not lower than the level resulting from the application ofthe formula set out in paragraph 2 , or 106 % of the level of — a modification of the quantitative limit set out in Annex IIimports reached during the calendar year preceding that in by the establishment of an ad hoc limit below the existingwhich imports exceeded the level resulting from the quantitative limit ,application of the formula set out in paragraph 2 and gaverise to the request for consultations , whichever is the as well as the corresponding equitable and quantifiablehigher . compensation which constitutes a mutually acceptable solution .The annual level so fixed shall be revised upwards after 2. The Community shall authorize the importation ofconsultations in accordance with the procedure referred to in products of the said category shipped from Malaysia beforeArticle 17 , with a view to fulfilling the conditions set out in the date on which the request for consultations wasparagraph 2 , should the trend of total imports into the submitted .Community of the product in question make this necessary . Pending a mutually satisfactory solution , Malaysia undertakes for a period of one month from the date of 5. The limits introduced under paragraph 2 or paragraph notification of the request for consultations , to restrain 4 may in no case be lower than the level of imports of exports of the products in the category concerned to the products in that category originating in Malaysia in 1980 . Community or to the region or regions of the Community market specified by the Community to one-twelfth of the