Complex sentence: First, the report suggested for Canada to foster a more flexible economy, capable of adjusting to international and technological change and recommended greater reliance on the market mechanisms and a free trade agreement with the United States.
Split into simpler sentences: First, the report suggested that Canada foster a more flexible economy, capable of adjusting to international and technological changes. Toward this end, the commission recommended greater reliance on the market mechanisms and that Canada pursue a free trade agreement with the United States.