CABO SAN LUCAS, Mexico -- Forecasters warned Tuesday that a tropical storm off Mexico's southern coast could turn toward this beach resort when Pacific Rim heads of state, including President Bush, are scheduled to arrive for talks on terrorism and trade.

In Miami, the National Hurricane Center said Kenna is likely to reach hurricane strength by the weekend and could strike Cabo San Lucas by Saturday.

At the meeting of the Asia-Pacific Economic Cooperation group, the fight against terrorism was overshadowing the usual topics of free trade and investment. In recent years, APEC has begun to take a political focus as trade issues are increasingly taken up at the World Trade Organization, to which most APEC members belong.

Since the terrorist attacks against the United States last year, the threat of terrorism has grown into a major topic at APEC.

This year's meeting comes after a deadly explosion on the island of Bali in Indonesia and attacks in the Philippines.

Delegates from the 21 members say they want to send a strong message that terrorism hurts economies and trade. But it is unclear how easily such a diverse grouping of countries would be able to agree on measures to fight terrorism, an effort that could be costly and hamper trade.

Senior government officials met Tuesday to discuss the agenda for meetings of trade and foreign ministers Wednesday and Thursday, and the agenda for heads of state Saturday and Sunday.

Mexican President Vicente Fox flew to Los Cabos to inaugurate the summit's press center, but was flying back to Mexico City and planned to return at the end of the week when the other heads of state arrive.

APEC members are expected to issue a statement at the end of the meeting, but the interest is likely to center more on the sideline meetings among the leaders, who are expected to discuss global issues including a possible U.S. attack on Iraq and North Korea's admission it is developing nuclear weapons.