By Ingrid Melander, Charlotte Van Campenhout and Yves Herman

STRASBOURG, Sept 17 (Reuters) - Canada and Europe should ally to protect their markets, democracies and rule of law in a world dominated by the United States and China, Prime Minister Mark Carney said on Thursday, after an EU ‌proposal to make Canada an "associate member".

The Canadian prime minister received warm applause for his speech to the European Parliament, delivered hours after U.S. President Donald ‌Trump threatened trade sanctions in response to European Commission President Ursula von der Leyen's proposal to create a new status for the EU-Canada relationship.

Carney did not adopt the term "associate member" used a day earlier ​by von der Leyen, but said he appreciated "the ambition" that her suggestion conveyed.

"Europe and Canada are each strong. Europe and Canada are even stronger together," Carney said.