Yes. The peach treated paper is good for smoking. I use it all the time. What you want to avoid is the coated butcher paper, sometimes called freezer paper. It's coated on one side with polyethylene which, for obvious reasons, would be bad to put in the smoker.
Personally, I would also avoid craft paper or paper bags. It looks a lot like butcher paper, but usually has clays and other additives. Not meant for food.