Buy European
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I'm sure these things could be addressed while still maintaining the economic benefits of bringing Canada into the EU.
How would you address them and what would those economic benefits be, that would not be lost while trying to address the issues and that would outweigh the costs of addressing the issues?
Frankly I would need to gather several experts and have access to all relevant data to even begin.
However, bringing in the world's 9th largest economy would have it's benefits. If joined it would be the 4th largest economy in the EU.
I believe that would provide great benefit.
The only thing you've mentioned that I have a suggestion on how to handle would be smuggling. Simply when leaving Canada to fly into the EU they go through standard security. Your already not allowed to fly with prohibited substances. If you're really worried when first arriving in Europe they can go through customs and then be allowed free travel. Although the existing land borders in Europe are much harder to control. Canada being an ocean away can be controlled much easier. Even if it's land borders are larger.
It is definitely fully possible that a way could be found in which a membership could be mutually beneficial. I personally do not think so, but that of course does not mean that it is not possible.
However, regarding smuggling do I wish to clarify that my big worry are ships. If a ship comes to Rotterdam from Amsterdam or if it comes to Rotterdam from Dublin or Porto does not really matter, both are inside the single market so are treated as internal. Everything on board those ships are already assumed to follow the rules of the single market and just a few spot checks are made. However, if it comes to Rotterdam from Montreal so is it checked much more thoroughly, as it is external. If Canada were to become a member of the EU would that change and Montreal would be checked as little as Dublin or Porto, meaning as long as you get something into Canada is it in the EU and will likely not be caught. The only solution would be to keep on treating the ship from Montreal as external, but in that case would Canada already be excluded from one of the biggest benefits of being a member.