The European Union (EU) and the Southern Common Market (Mercosur) free trade agreement (FTA) aims to increase regional trade and major integration between the regions; after decades of negotiations, in 2019, finalization of the agreement was reached. However, there are several blockages from both parties in the ratification process: whilst few EU members the criticize environmental and sustainability issues within the agreement, the Mercosur partners oppose the imposition of sustainability standards onto the region without adequate financial support. On this topic, the literature is still too poor to build a systematic literature review; thus, the present analysis follows a quasi-historical approach considering the major steps of the EU–Mercosur FTA looking both at the scientific and gray literature. The study underlines how environmental and sustainability issues are at the core of the European policies; thus, themes such as deforestation and pesticides could be a dealbreaker in the ratification of the agreement. For the EU, the FTA with Mercosur could mark a new step in the race towards it being a new “global standard” for sustainability and production.