A new German law will impose prison sentences of up to 10 years on people smugglers attempting to bring migrants to the UK.
The legislation, approved on Friday, aims to crack down on criminal gangs storing boats and engines in Germany before moving them to France for Channel crossings.
Coming into force before the year's end, the change will empower law enforcement and prosecutors, boosting information sharing between the UK and Germany.
This follows a deal agreed last December between the two countries to tackle illegal migration, including removing smugglers' social media advertising.
Foreign Secretary Yvette Cooper said: "This major change in German law is the result of our close partnership working to tackle illegal migration and organised immigration crime.
"We will continue to ramp up our international co-operation to strengthen our own border security."
The UK Government's Border Security, Asylum and Immigration Act became law earlier this month, allowing law enforcement agencies to use counter-terror-style powers to crack down on people-smuggling gangs.
The Home Secretary has also announced reforms to overhaul the asylum system in a bid to deter illegal migration and make it easier to deport people with no right to be in the UK.
Shabana Mahmood said: "Together with our German allies, we are cracking down on the criminal gangs operating the illegal migration trade.
"I thank (interior minister Alexander) Dobrindt for Germany's strong co-operation with the UK in tackling this issue.
"This Government is restoring order at our borders by scaling up removals and removing the incentives that draw people here illegally."
