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Germany will make it a specific criminal offence to facilitate migrant smuggling towards the UK as part of a new co-operation deal.
Yvette Cooper, the home secretary, signed the deal with her German counterpart, Nancy Faeser, on Monday evening.
Under the plan, Germany will clarify its domestic law to make it a criminal offence to facilitate smuggling migrants to the UK - a move the government says will allow German prosecutors to tackle the supply and storage of dangerous small boats equipment.
It will also see the two countries commit to exchanging expertise on how to remove migrant smuggling content from social media platforms.
More than 20,000 people have crossed the Channel in small boats since Labour came to power and more than 70 people have died attempting to cross the Channel so far this year.
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A total of 20,110 people in small boats have now arrived in the UK since the election on 4 July, according to leaked analysis obtained by Sky News and The Guardian last month.
On Tuesday the UK will host the next Calais Group meeting along with Germany, bringing together leaders from Belgium, France, The Netherlands, the European Commission and its agencies, Europol and Frontex, to discuss how to tackle the people smuggling trade.
Ms Cooper said: "For too long organised criminal gangs have been exploiting vulnerable people, undermining border security in the UK and across Europe while putting thousands of lives at risk. We are clear that this cannot go on.
"Germany is already a key partner in our efforts to crack down on migrant smuggling, but there is always more we can do together. Our new joint action plan will deliver a strengthened partnership with Germany, boosting our respective border security as we work to fix the foundations, and ultimately saving lives."
Ms Faeser added: "Many of these crimes are planned in Germany. Together, we are now countering this unscrupulous business with even more resolve. This includes maintaining a high investigative pressure, exchanging information between our security authorities as best as possible, and persistently investigating financial flows to identify the criminals operating behind the scenes."
The agreement comes as the UK seeks to reset its relationship with Europe following the vote to leave the EU in 2016 and the subsequent years under the Conservatives.
Earlier on Monday, Chancellor Rachel Reeves attended an EU finance ministers' meeting on behalf of the UK for the first time since Brexit.
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She said negotiations and demands were not made at this point but will begin in the new year.
The plan struck with Germany on people smuggling coincides with the downfall of the Assad regime in Syria, where the pair will be involved in the international response to the change of power in Damascus, which has been taken by leading rebel group Hayat Tahrir al Sham (HTS).
Already both the UK and Germany have paused decisions on Syrian asylum claims while they assess the situation on the ground.